Pika Protocol is a decentralized perpetuals swap exchange on Ethereum layer 2 with:

• High Leverage: support up to 100x leverage.
• Low slippage: nearly zero slippage for all pairs
• Trade Many Assets: starting from crypto and expanding to non-crypto.
• Low fees: built on Ethereum Layer 2 with low gas fee.
• Simple experience: swap directly from your wallet without doing any deposits.

Pika has its liquidity concentrated acround the current oracle price, making it possible to achieve the same level of liquidity as top perpetual exchanges. This enables capital efficiency and minimum trade slippage without requiring too much exchange liquidity. Specicially, Pika has zero slippage for major pairs like ETH and BTC.

Pika Protocol empowers users to trade both crypto and non-crypto assets with leverage. It can support any asset as long as there's a reliable price feed.

Pika supports 3 types of orders: market, limit and stop. The market orders are sent to be excuted immediately once it is submitted. For limit and stop orders, they are submitted to be stored in a smart contract instead of centralized servers, with the aim to be as trustless as possible, and are triggerred by keeper bots once the the price requirement is matched.

Read more about Pika

In the past bull markets one of the disadvantages of decentralized exchanges compared to centralized ones was the lack of support for futures trading and leveraged trades. But in the current bear market, powerful decentralized platforms like Pika were created that made it possible to place futures and leveraged trades.

For perpetual traders two parameter is important:

• The first one is the amount of transaction fee, because traders who do leveraged trading are mainly looking for short-term trades and small volatility in prices.
• The second one is the speed of processing orders and confirming transactions on the blockchain. Since leveraged trading is done with low volatility targets, the trader expects the transaction to be confirmed in the shortest possible time so that there is no difference in the target price.

So far we realized that decentralized platforms providing futures trades need a blockchain with low fees and high processing speed. An Etherume L2 network like Optimism has both of these features and can be a great platform for future trading in the next bull market. Pika platform has chosen the Optimism network to empower its platform and works exclusively on this network. Pika exchange has a great user interface and speed, also supports futures trading and levereged trades.

Pika did not launched its native token yet, but if it does, it could be one of the top tokens in Optimism ecosystem.

To analyze Pika platform I have used optimism.core.fact_event_logs table and Pika Position Manager Contract as the contract address (origin_to_address). Based on my observations every compeleted trades on the Pika platform will follow this path:

• First Create an Open Position
• Next Execute the Open Position
• Then Create a Close Position
• Finally Execute the Close Position

For each part that mentioned above, one transaction will be sent to this contract address 0x8add31bc901214a37f3bb676cb90ad62b24fd9a5 with one of the following functions:

• createOpenPosition function: 0x8a182319
• createClosePosition function: 0x9a45d557
• executeNPositionsWithPrices function: 0x916f0e54 (Either Open or Close)

With these explanations let's see some charts and graphs that will show Pika platform important metrics.

From July 2022 about 263K unique wallet addresses have transacted with Pika and in average about 1300 users have used Pika per day. Also we can see the ratio of created positions to executed positions, and number of created open positions and close positions.

We can see in average users are spending 0.000263 ETH for each transaction that by considering today ETH price (about $1400 on March 10, 2023) is about $0.36. And we know this amount is appropriate fee for those who are doing future tradings.

The notable point on above charts is significant growth in number of created positions and number of users who are creating positions from September 20, 2022 to January 17, 2023. This is the same period ‌that Optimism users could participate in campaign and do some tasks to be eligible Optimism airdrop. One of these tasks was open a trade(with margin of at least 30 USDC) on Pika platform. So we can conclude that the main reason for this big rally and then sudden drop in Pika trades was Optimism airdrop. except that timeframe we can't see any noteble trends in Pika trades or traders yet.

We can see the same pattern in trade volume and transaction fees. Also we can see share of trades with volume between $100 and $500 was roughly equal to trades with volume under $100 before Optimism campaign begins. As regards during the campaign users had to open a trade with margin of at least 30 USDC the number of trades under $100 has grown significantly. After the day that campaign was ended, equivalence has returned to the trades volume.

• One of the disadvantages of decentralized exchanges compared to centralized ones was the lack of support for futures trading and leveraged trades that can be compensated by platforms like Pika.
• Optimism is appropriate network to develop decentralized perpetuals platforms, since it has high speed processing and low transaction fees.
• In average users are spending 0.000263 ETH for each transaction that by considering today ETH price (about $1400 on March 10, 2023) is about $0.36.
• One of the tasks that users could do to participate Optimism airdrop was open a trade(with margin of at least 30 USDC) on Pika platform. So during this campaign number of Pika trades and traders was grown significantly.
• Share of trades with volume between $100 and $500 was roughly equal to trades with volume under $100 before Optimism campaign begins. During the campaign the number of trades under $100 has grown significantly and after campaign equivalence has returned to the trades volume.

Finally we can say even though Pika exchange has a great user interface and speed, but users prefer to do their future tradings on centralized exchanges yet.

Discord: pouya_22#1482

Email: crs.pouya@gmail.com

Twitter link for this dashboard: https://twitter.com/Pouya12584188/status/1634288988814037007?s=20