Pear Protocol : Hyperliquid Pivot

Pear Protocol

Pear Protocol began with a closed beta on Arbitrum One on 8 September 2023, using GMX v1 as the sole liquidity source under a GMX Builder Grant and Arbitrum LTIPP subsidy. Following audits, the protocol opened to the public on 29 March 2024 with its v1 release on Arbitrum. Traders could choose Isolated mode (orders routed to GMX v2) or a new Cross-Margin engine built on Vertex’s central-limit order book, allowing USDC margin to back both legs of a pair. On 29 July 2024 Pear shipped its v2, introducing an intent-centric router developed with SYMMIO. The upgrade retained Arbitrum settlement but let users RFQ more than 250 perp markets in a single click, with solver-network execution and ratio-level TP/SL logic.

Pear's value proposition was simple but straightforward. Perpetual DEXes such as GMX, Symmio, and Vertex offered only markets against USDC quote assets. Pear operates as a routing platform above these protocols, enabling one-click pair trading by replicating synthetic pair positions. When a user seeks to go long BTC and short ETH, rather than creating two separate positions, Pear enables this execution in one click, handling the process through its Cross-Leg Risk engine. 

Pear's engine has the following benefits versus a user creating positions via isolated or cross margin on traditional platforms:

• Isolated margin calculates each trade independently but cannot recognize offsetting PnL between two legs; a loss on one side can still force a liquidation even when the overall spread is flat.
• Cross-margin allows gains to offset losses, yet it concentrates risk by tying every open position to a single liquidation threshold since cross-margined pair positions are backed by the same collateral backing other user positions.
• Pear's Cross-Leg Risk Engine creates a dedicated collateral sub-vault for every pair. Maintenance requirements are determined by the historical correlation and relative volatility of the two assets, so collateral is calibrated to the risk of the spread, not to the raw notionals of the individual legs. In practice, this reduces required margin by 60–80 percent for highly correlated pairs while ensuring that any adverse move remains ring-fenced to that vault alone. When liquidations are necessary, both legs are unwound in a single transaction, preventing half-hedged exposure.