Pear Protocol is a decentralized trading layer designed to execute and manage pair trades across various decentralized finance (DeFi) protocols. It functions as an aggregator, connecting to on-chain trading engines to allow users to take simultaneous long and short positions with leverage through a single interface. ^[1]

Overview

Pair trading is a market-neutral strategy that involves simultaneously taking a long position in one asset and a short position in another related asset. The goal is to profit from the relative performance of the two assets, rather than the direction of the overall market.

For example, a trader who believes Solana (SOL) will outperform Ethereum (ETH) could go long on SOL and short on ETH. The profit or loss is determined by the change in the ratio of the two assets' prices. This strategy allows traders to speculate on asset relationships and potentially generate returns in bull, bear, or sideways markets. ^[1]

Pear Protocol was developed to address the complexity and fragmented nature of executing pair trades in the DeFi ecosystem. Manually managing two separate positions on different platforms can be inefficient and prone to errors, such as slippage and poor timing on execution. The protocol aims to solve this by providing a unified dashboard for one-click trade execution, position management, and risk analysis. It integrates with established decentralized exchanges to access their liquidity and leverage offerings, acting as a specialized front-end for pair traders. The platform provides tools for charting asset ratios directly, setting risk management parameters like take-profit and stop-loss on the pair's ratio, and analyzing position metrics such as profit and loss (PnL) and net funding rates. ^[2]

The protocol is designed for both retail and professional traders, offering features that range from simple one-click execution to more advanced order types and weighting options. By abstracting the underlying complexity of managing two separate perpetual positions, Pear Protocol seeks to make the pair trading strategy more accessible and efficient for a wider range of crypto market participants. ^[2]

History

Pear Protocol's development and launch progressed through several key phases. The platform's Public Beta was launched on May 13, 2024, initially building its infrastructure on top of the GMX and Vertex protocols to offer users access to over 210 trading pairs. Following the beta period, the protocol held a public sale for its native token, $PEAR, on September 17, 2024, which reportedly sold out within 50 minutes. The $PEAR token became available for trading on the Camelot DEX on September 25, 2024. ^[3]

On November 11, 2024, the protocol launched its intent-based product, which introduced features such as fee rebates paid in ETH and an integrated referral system. This update also directed fees generated from the intent-based system into the staking pool for revenue sharing with token holders. A significant integration occurred on July 28, 2025, when the Pear Protocol engine for the Hyperliquid exchange went live, expanding the platform's reach and trading options. ^[3]

Technology & Features

Pear Protocol operates as an aggregation layer that connects to the back-end infrastructure of other decentralized exchanges. It is not a standalone decentralized exchange (DEX) but rather a specialized interface that routes orders to its integrated partners. This architecture allows it to offer deep liquidity and a wide range of tradable assets without needing to build its own exchange from the ground up. ^[2]

Integrations

The protocol integrates with several major on-chain trading engines to power its pair trades. These integrations provide the liquidity and leverage necessary for the platform's operations. As of late 2025, the primary integrated platforms include:

• Hyperliquid: A decentralized perpetuals exchange known for its order book architecture.
• GMX: A decentralized perpetuals exchange operating on Arbitrum and Avalanche.
• Vertex Protocol: A hybrid order book-AMM DEX on Arbitrum.
• SYMM: A decentralized derivatives protocol. ^[4]

Use Cases

The platform is designed to support various trading strategies that leverage the relative performance of assets.

• Narrative-Based Trading: This involves trading based on prevailing market trends or "narratives." For instance, a trader might long a token from a trending sector like AI and short a token from a less favored sector, betting on the narrative's strength.
• Fundamental Trading: This strategy is based on the fundamental metrics of different protocols. A trader could, for example, long a token with a low Fully Diluted Valuation (FDV) relative to its Total Value Locked (TVL) and short a token with a higher ratio, speculating on a future price correction.
• Technical Trading (Charting): This involves applying technical analysis directly to the price ratio chart of two assets. Traders look for patterns, support, and resistance levels on the ratio chart to make trading decisions.
• Statistical Arbitrage: This advanced strategy focuses on identifying statistical mispricings between correlated assets. Traders aim to profit from the expectation that the pair's price ratio will revert to its historical mean. ^[5]

One specific application highlighted by the protocol is trading Bitcoin Dominance (BTC.D). The BTC.D index, which measures Bitcoin's market capitalization relative to the total crypto market cap, is available as a tradable asset on the platform. Traders can long the index to bet on Bitcoin outperforming altcoins or short it to bet on the beginning of an "altcoin season." ^[6]

Tokenomics

The Pear Protocol ecosystem is powered by its native utility and governance token, $PEAR. The tokenomics are designed to incentivize participation, reward long-term holders, and facilitate decentralized governance. ^[7]

The $PEAR Token

$PEAR is an ERC-20 token on the Arbitrum network. Its primary functions include revenue sharing and providing trading benefits. The token is available for trading on decentralized exchanges like Camelot and Uniswap, as well as the centralized exchange MEXC. ^[1]

Staking & Revenue Share

Users can stake their $PEAR tokens to receive stPEAR (staked PEAR). Holders of stPEAR are entitled to a share of the protocol's revenue. According to the project's documentation, 80% of the fees generated by the platform are distributed to stakers. These rewards are paid out to stakers in assets like ETH. ^[1]

In addition to revenue sharing, holding stPEAR provides users with trading fee discounts on the platform. The size of the discount is tiered based on the amount of stPEAR held by the user. The token is also intended to be used for governance through the PearDAO, allowing holders to vote on proposals related to the protocol's future development and treasury management. ^[8]

Backers

Pear Protocol is backed by several venture capital firms within the cryptocurrency space. Its listed supporters include Blockchain Founders Fund, Flow Ventures, Prismatic Capital, and Portico Ventures. ^[1]