Arcus launches pTokens to convert perp accounts into ERC-20s

Perpetual futures positions have always been stuck where you opened them. Arcus wants to change that by wrapping them into standard ERC-20 tokens that can move freely across DeFi.

The decentralized exchange, built by the dYdX team in collaboration with Robinhood Crypto, has launched pTokens on the Robinhood Chain. The concept is straightforward: take a perp account balance that was previously locked inside the platform and represent it as a transferable on-chain token.

What pTokens actually do

pTokens encode perpetual futures positions as ERC-20 tokens. Because ERC-20 is the universal standard for tokens on Ethereum-compatible chains, these wrapped positions can theoretically interact with lending protocols, be used as collateral elsewhere, or simply be transferred between wallets.

Testnet data shows the product labeled as “Arcus pToken Test v2,” suggesting at least one prior iteration was tested before the current version. The implementation runs on Robinhood Chain, an EVM-compatible layer 2 blockchain, which means it inherits Ethereum’s token standards while operating with lower costs and faster settlement.

The Arcus platform in context

Arcus launched in beta on July 1, 2026, and has been quietly building out an ambitious feature set. The platform supports 24/7 spot trading of more than 95 tokenized US equities with zero transaction fees. Its perpetual markets allow up to 50x leverage across equities, indices, commodities, and crypto, with USDG as the primary collateral asset.

Total value locked in Arcus perps currently sits at approximately $20.2 million, a 15.8% increase over the previous 30 days.

Why wrapping perp positions matters for DeFi

Lending protocols like Aave accept spot tokens as collateral, but leveraged positions have been invisible to the rest of DeFi because they exist only as entries in a specific exchange’s order book. pTokens could change that equation by making these positions legible to any smart contract that reads ERC-20 balances.

The risk side of this equation deserves attention. A pToken representing a 50x leveraged position carries the liquidation risk of that position. If the underlying perp gets liquidated, the pToken’s value drops to zero. There’s also the question of oracle reliability: for pTokens to function as collateral across multiple protocols, those protocols need real-time, accurate pricing of the underlying perpetual position, accounting for unrealized PnL, funding rates, and margin requirements, all of which change continuously.

The redemption process matters too. A pToken is only as valuable as the ability to convert it back into the underlying perp position or its cash equivalent. If redemption mechanisms are slow, gated, or dependent on liquidity that might not be there during market stress, the token could trade at a persistent discount to its theoretical value.

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