The squeeth contract is design for users to long or short a special index like eth², as an implementation of a Power Perp. The squeeth contract is designed for users to long or short a special index like eth², as an implementation of a Power Perp.

Mechanism-wise, the squeeth contract works like a perpetual swap, where people can go long or short on an index, and funding is charged either from the long or short, based on the market price relative to the index.