# Overview & Protocol Architecture

Canonical page: https://docs.denaria.finance/protocol-architecture/overview-architecture

Status: current

# ![Overview cover](https://docs.denaria.finance/img/protocol%20Architecture/04_coverOverview.png)

### Introduction
Denaria Perpetual DEX is a next-generation decentralized trading platform delivering a **permissionless and entirely onchain trading experience.** Designed for capital efficiency and institutional-grade performance, Denaria reimagines perpetual futures by integrating a **dynamic virtual AMM** anchored to **real-time oracle pricing**. Every trade, funding payment, and collateral movement is **executed transparently onchain,** ensuring trustless composability without centralized dependencies.

Unlike many DeFi perpetual exchanges that rely solely on static vAMMs or order books, Denaria uses an **dynamic liquidity curve** that continuously aligns with the real market price. While trades occur at the exact oracle price, slippage remains minimal due to the curve's hybrid structure.

A **funding mechanism incentivizes market balance** by redistributing payments based on long/short open interest rather than price premiums.
At its core, Denaria features a **multi-stable vault system** designed to enable collateral deposits in various stablecoins. While the initial version of the platform will support **only a single stablecoin,** the full multi-collateral architecture, with flexible ratios and virtual balance tracking, will be introduced in a future release. This upgrade will unlock seamless PnL accounting and enhanced collateral management without relying on fixed ratios.

Whether you’re a retail trader or a passive liquidity strategist, Denaria offers a **_permissionless, composable, and capital-efficient infrastructure_**, setting a new standard in onchain perpetual markets.