# What is Capy Perp?

Capy Perp is the first perpetual DEX built on Kaia that offers a liquidity-efficient, powerful, and user-friendly trading experience. Our synthetic architecture makes Capy Perp a robust platform for traders to trade on a wide range of assets at a high level of leverage.

Basically, you will not have to bridge the actual BTC, ETH, or any tokens onto Capy Perp to trade perpetual futures. You just need to collateralize Lair Finance’s KAIA liquid staking token (stKAIA) to go for long or short positions and earn profits from price movement.

By using stKAIA, we are now adding more use cases to the KAIA token in DeFi besides liquidity farming. Traders use stKAIA as collateral to trade on Capy Perp, while stakers in Capy Perp earn trading fees and countertrade PnL on top of natural liquid staking yield.

Capy Perp supports up to x50 leverage on crypto and forex trading.

Now, let’s explore how to open your first trade on Capy Perp.

{% hint style="warning" %}
Staking on Capybara Perp is acting as the counterparty to the trade. You will earn trading fees and countertrade PnL on top of natural liquid staking yield. However, as you are the counterparty, there is a chance where the traders will win against you.
{% endhint %}


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