Deri AMA Recap on Apr 18th, 2023

Deri Protocol
6 min readApr 18, 2023

On Apr 18th, Deri launched an AMA. Let’s watch the detailed & complete AMA recap below:

The AMA Entrance:

OxAlpha: Hello everyone! Let’s start with briefing the recent updates. The recent improvements & updates of Deri include:

1. Deri has been officially live on zkSync Era mainnet. Check out our website.

zkSync Era is a trustless protocol designed for scalable, low-cost payments on Ethereum, powered by zkRollup technology. Users can hedge, speculate, and arbitrage on-chain with lower gas fees and rapid transactions, all powered by ZK rollup technology.

Deri’s mission is to foster mass crypto adoption in derivative trading by leveraging zkSync Era’s performance and scalability, all while maintaining Ethereum-level security.

Together, let’s build a more efficient DeFi ecosystem.

2. This is something on-going.

To stimulate the trading growth & boost liquidity on Deri, Deri launched a proposal that 80% transaction fee be reallocated to introduce a referral program. We’ve initiated a vote, which will be conducted in two rounds. The first round has already concluded, and the result was “Agree.” However, the decisive vote (DIP5) will be carried out in the second round, which will begin this week. Users who did not participate in the first round should seize this opportunity to participate in the second round. Stay tuned, keep an eye on Deri’s official twitter, Discord, TG group..

3. New partnerships:

Deri Protocol x CVL Wallet
Deri Protocol x Doge Farm
Deri Protocol x Argent Wallet

So much for the updating.

Now let’s get to the questions.

Q1: Any protocol built on top of gammaswap? Why adoption of Deri is slow, compared to other derivatives protocol? Why don’t you build a product using gammaswap, so common people need not to use gammaswap to hedge IL.

A1: We are working on it. Such things take time. Please give us a little patience.

If you are criticizing us for building things too slowly, I don’t agree with you.

As for the adoption and usage of Deri, I admit we could do better on this part. We are working the promotion of Deri usage.

Q2: Any detailed plan about Deri 200k$ buyback? We got many complains, we should make the next AMA to make result come true asap! It will help Deri to keep the believe from diamond holders! Thanks.

A2: First of all, I never said (under any circumstances) that there would be “buyback”. Neither the team nor the treasury has made any promise to buy back DERI tokens. This is something I said many times and here I want to emphasize it again: there is NO “buyback” mechanism or plan in Deri’s tokenomics.

Nevertheless, I did say there would be burning. And that is on-going since the last AMA addressing the phishing incident. We have launched a more-aggressive-than-normal burning procedure and this will continue for a while.

Q3: Will leverage multiplier increases?

A3: The current setting of multipliers is chosen by a comprehensive consideration of the risks and the leveraging demands. However, if you think higher leverage is needed, please tell us the rationale behind that so we can reconsider how we can balance risks and leveraging demands.

Q4: Hello, one suggestion for you is to let us resize the different screens so we do not have to scroll up and down so much on the positions. I wish I could make my graph and screen below ‘Liq. Price’ smaller and my ‘Positions’ longer.

A4: If this is from a browser on PC, you can use Ctrl+“-” to zoom out the webpage. This is what I usually do on my 13-inch laptop.

As for the specific demand of “make my graph and screen below Liq. Price smaller and my Positions longer”, I will forward this to the product lead and see how we can optimize this part.

Q5: The platform needs to be easier to understand.
1. Show the leverage when you take a position.
2. Add functions that a trader typically needs, stop by means for example when the price is at 30k and you want to take a position when the price goes through 31k because some resistance is broken at these levels. Stop loss and also limit buy or sell etc… right now it’s only market order which is not enough.
3. If you want to get more traders on zksync, just refund the majority of the tx fees, most dapps are doing that currently.

1. Show the leverage when you take a position: We do that. Actually, the position can even be specified by choosing the leverage.

2. Stop orders: That is in the pipeline. I am sorry this has been delayed due to some other priorities but we will get back on it. Both limit orders and stop orders will be supported.

3. Refund transaction fees: We might consider some early-stage incentive but, in general, we don’t do things just because others do . I think the real question is: does Deri Protocol provide the added value worth the tx fees? If yes, then people would be willing to pay for it. If not, reimbursing tx fees does not help much here.

Q6: What is the advantage of gamma trading over delta? Please explain funding fees in gammaswap

A6: Gamma trading is just a different thing, just like Options is a different thing from futures. It’s not an alternative to Delta trading so there is no “advantage over delta”.
From a professional perspective, Gamma is another Greek letter. Gamma swap is for you to swap the Greek letter Gamma. This is just like futures is for you to swap Delta (in that sense, you can call futures “Delta Swap”).

As for the funding fee: since you will make profit from a long postion no matter the underlying (e.g. BTC) goes up or down, for that kind of risk exposure, you gotta pay something, which is the funding fee. You can think of the funding fee as the price for such an advantage position.
For more details, please read the documents:

Q7: How will the 300K+ Arb airdrop be used to motivate the community?

A7: We’ve not made a plan yet.

Q8: I hope that you have more multi-language tutorial articles or videos that can help more people quickly understand and use deri.

A8: For the multi-language suggestion, yes, I understand. Right now our website supports 11 languages. But I understand that you also need such support for the documentations and tutorials. We will work on this.

About Deri Protocol

Deri, your option, your future!

Deri is the DeFi way to trade derivatives: to hedge, to speculate, to arbitrage, all on chain. With Deri Protocol, trades are executed under AMM paradigm and positions are tokenized as NFTs, highly composable with other DeFi projects. Having provided an on-chain mechanism to exchange risk exposures precisely and capital-efficiently, Deri Protocol has minted one of the most important blocks of the DeFi infrastructure.

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Deri Protocol

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