Staking Perpetuals

This perpetual contract tracks the annualized staking rewards APY, allowing traders to speculate on or hedge the level of the staking rate itself. Monad network's staking rewards APY is used throughout the examples below.

Characteristic	Description
What it tracks	The level of the annualized staking APY for the Monad network.
Index Definition	The index price is the annualized staking APY, scaled by 100. For example, a 5.50% APY corresponds to an index price of 550.00.
Oracle Type	A staking yield oracle that consumes the live MON staking APY from on-chain protocol data, scales it, and publishes it as the reference price.
Market Type	Cash-Settled Index Perpetual. The contract is margined and settled in USD terms.
PnL Formula	• PNL (Long) = (Exit Price - Entry Price) × Position Size + Total Funding_ Received • PNL (Short) = (Entry Price - Exit Price) × Position Size + Total Funding Received Where: • Entry Price / Exit Price: The perp price (the scaled APY) at which a position is opened and closed. • Position Size: The number of contracts in the position.
Use Cases	Long (Bet on higher APY): • Gain leveraged exposure to the Monad staking APY without holding the underlying asset. • Speculate that network activity, transaction fees, or MEV will increase, driving up the staking APY level. Short (Hedge staking or bet on lower APY): • A hedge for large Monad stakers or validators to lock in a fixed rate on their expected rewards. • Express a view that the Monad staking APY will fall.
Users	• Validators and staking operators running MON infrastructure • Protocol treasuries and DAOs with large MON staking exposure • Sophisticated retail traders and yield speculators
Vol-stat (σ)	Low–medium. The staking APY typically moves more slowly than the spot price but can jump on governance changes, fee shifts, or changes in network usage.
Margin Numbers	Derived from the Max Leverage tiers for this market. For example, if the risk engine assigns a 5x max leverage, the Initial Margin (IM) is ~20% of notional.

See additional market mechanics and parameters