Everything Is A Perp

Power perpetuals are contracts that track an index price raised to a power p, and the article argues that stablecoins, margined futures and constant product AMMs are all types of power perpetuals. It claims crypto-collateralized stablecoins like DAI or RAI are 0-perps, margined futures like dYdX are 1-perps, and Uniswap is a replicating portfolio for a 0.5-perp. Under this framing, a stablecoin with a power of 0 and collateral at 1.5 times debt tracks a price of one dollar. The article also says that the equilibrium Uniswap fee should equal the funding rate of a 0.5 perpetual, which in the simplified zero-rate case equals σ²/8.