Adding CAKE as Base Token

Deri Protocol
3 min readJul 14, 2021

Deri Protocol is the FIRST and the ONLY derivative protocol on BSC which supports multiple tokens as base tokens for liquidity providers to provide liquidity as well as for traders to deposit as margin, which is called dynamic mixed margin and liquidity framework. Within the unique framework, derivative trading can achieve an optimal capital efficiency, which is potentially higher than that of centralized exchanges. A milestone in terms of DeFi progress!

Now we are delighted to announce that CAKE will be a new “non-cash” base tokens on BSC. Adding CAKE as base token is a solid step forward for Deri Protocol to expand the DeFi lego game to all crypto projects on BSC.

How to Use CAKE on Deri Protocol

CAKE holders are able to mint DERI by depositing CKAE tokens as liquidity into the mining pool.

Example: Alice stakes 1,000 CAKE on the perpetual pool “BTCUSD, ETHUSD/CAKE”. Besides DERI rewards, she also earns transaction fee, funding fee, shared remaining value of liquidated positions and in case of trader’s loss. These gains are reflected in the mining PnL metric. Refer to the guide here on how to provide liquidity on our in-house pools.

Click to stake
Add liquidity

Simultaneously, CAKE can also be used as margin to trade BTCUSD, ETHUSD perpetual contracts. Please refer to the guide here on how to trade.

Deposit margin

Example: Alice longs BTCUSD on the perpetual pool using CAKE as margin

  • If BTC’s price increases against USD:
    She receives profits in BUSD after closing her position.
  • If BTC’s price decreases against USD:
    She receives less CAKE in return after closing her position.

Enjoy the DeFi way to trade derivatives on Deri Protocol NOW!

We believe that adding qualified tokens as base tokens on Deri Protocol is a significant milestone for both the BSC ecosystem and Deri Protocol to bring a broad range of DeFi experience and value to users. We believe Deri Protocol and other projects on BSC can work closely to develop an improved infrastructure to support mainstream blockchain adoption and make DeFi accessible to everybody!

About Deri Protocol

Deri Protocol is a decentralized protocol for users to exchange risk exposures precisely and capital efficiently. It is the DeFi way to trade derivatives: to hedge, to speculate, to arbitrage, all on chain. This is achieved by liquidity pools playing the roles of counterparties for users. With Deri Protocol, risk exposures are tokenized as NFTs so that they can be imported into other DeFi projects for their own financial purpose. Having provided an effective on-chain mechanism to exchange and hold risk, Deri Protocol has minted one of the most important blocks of the DeFi infrastructure.

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About Pancake

PancakeSwap is a decentralized exchange that allows you to trade cryptocurrencies and tokens without a centralized intermediary, keeping custody of your tokens all the while. It is built on automated smart contracts deployed on Binance Smart Chain, the blockchain platform run by crypto exchange Binance.

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Deri Protocol

Deri Protocol = (Perpetual Futures + Everlasting Options) x Decentralized.