Deri AMA Recap on Dec 30th
On Friday, Dec 30th, Deri launched the last Deri AMA in 2022. In the AMA, the co-founder, 0xAlpha, reviewed & summarized Deri’s significant progress & achievements this year, and look forward to 2023. Surely, the Q&A session was also included.
The AMA Entrance: https://discord.gg/dQyuBkBKBe
Let’s watch the detailed & complete AMA recap below:
OxAlpha: Hello, dear Deri fellows! It’s awesome to carry out this AMA! Before answering the questions, let me start with the review & summary.
The global market has experienced tremendous challenges in 2022, but DeFi and Deri Protocol has shown its resilience and anti-fragileness. As the year comes to a close, let’s take a look at all the significant progresses that Deri Protocol has made in 2022.
I will briefly talk about 3 parts:
A: Product innovation & development
B: Ecosystem & community expansion
C: On-chain Data.
A. Product innovation & development:
1. Deri Protocol V3:
In January, 2022, Deri V3 was launched with defining features, called external custody and a uniform DPMM, to provide optimized capital efficiency to users on Deri Protocol
2. Expansion to Arbitrum
3. Power Perpetuals
4.Revamped UX and UI: the most important one, of course, is the new UX of Deri Lite. Other revamped things include Simulate PNL calculator, Global trading symbols search function, etc.
5. More trading symbols: There are more than 20+ trading symbols now on Deri Protocol
B. Ecosystem & community expansion
1.Deri Ecosystem
The Deri Ecosystem Portal — deri.fi — was officially introduced. All Deri verified projects from both core team and community developers are listed in the portal. All these Dapps are built based on Deri Protocol smart contracts. In 2022, the newly created Dapps in the portal include: Bet It, Dip Hunter, Stable Earn.
2. Now we have supported 11 languages on deri.io to serve users in different regions.
3. Governance DAO: Deri’s decentralized governance procedure is established.
Third part:
C.On-chain Data
1. Trading data:
The cumulative trading volume on the Deri Protocol exceeds 140 billion. More than 3000 new addresses have traded on the Deri Protocol, with daily derivatives trades reaching an all-time high of 1000+ in 2022.
2. Data of DERI tokens burning
In 2022, over 6.12 million Deri tokens were burned. Of those tokens, 4.35 million were burned to the mining vault (the old burning model), and 1.77 million were burned to the deadlock address (the current burning model).
So that’s a very brief review. For more details, we have Deri Protocol’s 2022 report: https://medium.com/@deri-protocol/2022-a-year-in-review-9e4acca58bf6
Host: Excellent! Now let’s move to the Q&A session
Q1: When will we have the Deri 2023 roadmap?
A1: For the roadmap, while the final roadmap for 2023 is still being finalized within the team, let me first share with you what are being discussed:
— — — — Product — — — —
Deri V3.1
— new framework of external custody
— more flexibility with symbol adding/removing
Deri V4
— introduce inter-chain liquidity pool
Gamma Swap and more
Expand option underlyers (e.g. BNB)
Other features
— limit & stop orders
— — — — Ecosystem — — — —
Build Deri ecosystem in which Deri Protocol is adopted in many other projects
— Stable Earn expansion
— More asset management product
— Deri as hedging tools for spot AMM
— Structural products
— — — — Governance — — — —
Further promote governance decentralization
Q2: Should we do co-operator with any web3 project in near future?
A2: For co-operation, this is something we will emphasize more as Deri Protocol keeps being optimized.
We are co-building projects with several other teams, just like Stable Earn we co-built with Stader. However, as it’s not time to officially announce yet, I will not disclose the specific names. But please stay tuned with us.
Q3: Will be on OP or other chains?
A3: We are investigating the possibility of deploying Deri Protocol to any EVM-compatible networks (and even non-EVM-compatible networks are being looked into too).
As we have made our roadmap for 2023, in which we are rolling out inter-chain mechanism, such expansion of networks will be carried out within the Deri V4 framework. That is, it will not be like the current multi-chain architecture in which the liquidity pools on different networks are independent of each other. Instead, the liquidity pools on all the networks should be connected. I know the introduction of this feature has been delayed. This is because cross-chain is never easy and we want to make sure our cross-chain mechanism is absolutely secure.
Q4: Need gamma swap. Any estimated release date? Any update on gamma swap yet?
A4: We have had some technical obstacles with Gamma Swap.
However, we are working on it. Hopefully this will be resolved in the next month then we will proceed to the implementation of Gamma Swap.
Speaking of Gamma Swap, meanwhile, please share with us how you would like to use it. That would help with our development of Gamma Swap too!
Q5: Maybe considering partial liquidations?
A5: Partial liquidation is a controversial feature.
I think I talked about this one before and made some numerical examples. Essentially partial liquidation is to trigger part of the liquidation earlier than where it would be liquidated in the standard mode.
Q6: Would be nice to see risk management tools like stop loss function
A6: Stop loss function is based on stop orders, which is the next feature to be rolled out from our pipeline.
Q7: An overview explaining the various error messages would be very useful. Also for the team, because then the queries would be reduced.
A7: That is a great suggestion. I will forward this to the team to add an error message explanation sector in our documents.
Q8: I compared Deri withGMX and feel that Deri is better. But the token has no special use, only pledge and voting, and there is a repurchase, why can’t the token be turned into a dividend coin like GMX? I think this is very good and has user stickiness.
A8: While we are working on adding more features to the DERI token, we would NOT introduce the dividend sharing feature, which would turn DERI into a security token. We don’t want DERI to be a security token.
Q9: I see only BTC and ETH on Arb. When will you add more tokens?
A9: I assume you are talking about the underlying asset for derivatives. We could launch an Inno Zone for the smaller cap tokens just like what we are doing on BNB Chain. However, we are not quite sure about the necessity and urgency of adding more underlying assets as we don’t see a huge trading volume in our Inno Zone on BNB Chain.
This is the part where I would heavily depend on you guys’ inputs:
Do you think we should add more underlying assets additional to BTC and ETH on Arbitrum? If yes, which ones you suggest we start with?
Q10: Suggestions of new listings: ETHUSD-1000-C, BTCUSD-10000-C
You can add strikes to all instruments like this 1100 1200 1300 …… because you have only 1000. 2000 ….
Why are there never options like1500 or 2500?
BTC needs $10,000 and ETH needs $500 strike
More generally I am wondering on which basis you are adding or removing strike?
A10: Let me address your last question (the general question) first.
Due to some technical constraints, we are not able to add as many strikes as we want. (This also answers your question why we are not providing strikes for the not-so-round numbers such as 1100, 1200, etc.)
This is sort of different from orderbook platforms like Deribit, which provides way more strikes than we do. However, on Deribit, availability does not mean tradability. Among the hundreds of strikes on Deribit, most of them are with very poor liquidity and hence not practically tradable at all. In contrast, on Deri, availability = tradability. That is, all the provided strikes are provided with the same level of liquidity. Here I am not saying which one is better than the other (Such a comparison is more complicated than what we can analyze here). These are just two different architectures, with their respective advantages and disadvantages. Within our framework, we have to make choices when it comes to strike support.
With that background explained, let me further explain how we decide what strikes to provide. We generally provide the strikes that are most popular among option traders, Based on our experience and actual trading stats (volumes and open interests) from other platforms (e.g. Deribit), the ATM options and the near OTM ones (e.g. BTC-15000-Put) are the most popular. This is also because such options are usually the most useful ones.
Now let me get back to your first several questions. At the moment, we probably will not provide the already In-the-Money ones like ETHUSD-1000-C or BTCUSD-10000-C, unless ETH dropped below 1000 or BTC dropped below 10000. (Let’s hope this will not happen).
That being said, we have already provided the most useful ones such as ETHUSD-1000-P or BTCUSD-15000-P. We would, of course, provide BTCUSD-10000-P, should things have gone worse and BTC have dropped below 15000. (Let’s hope this will not happen either).
However, this is open to discussion. Maybe there are some special demands on strikes like ETHUSD-1000-C or BTCUSD-10000-C that we don’t know. If that’s the case, please discuss it with us.
Q11: Suggestion: Can the unissued DERI tokens be destroyed? and then the repurchased tokens are stored, and the mining rewards are provided by the repurchase tokens?
A11: First of all, let me clarify one thing:
we DON’T do repurchases. We do burning, which is different from repurchasing. There is absolutely NO repurchasing of DERI.
(FYI, repurchasing activities would make DERI a security token. We don’t want that.)
Back to your question, if a DERI token has not been issued or minted, it does not exist, hence cannot be destroyed. You cannot destroy something that does not exist.
As for your second question, let me first replace the word “repurchase” with “burn” (I assume that’s what you meant) and then answer the revised one: Why don’t we store the burned DERI tokens somewhere and reward the LPs with these stored burned tokens?
The answer is: You are talking about the previous burning model of the DERI token, which was voted down in DIP4 (https://deri.io/#/dipfour). If you don’t like it, you are free to start another vote on this issue.
Q12: Want more information about DERI token empowerment.
A12: If you are talking about the current status, please refer to the token page: https://deri.io/#/token
Q13: What is the current funding source of the project? What do you rely on to make a profit? How to survive this bear market safely?
A13: LOL, Thanks for caring for us! If you worry about that, I don’t mind if you donate some funds for the team.
Well, here is the non-kidding answer:
The team is funded by our investors (check out our frontpage for details). And yes, we are well-funded to go through this bear market.
Q14: As a DEX, why Deri’s data is not disclosed？Platform transaction data, service fee income, the number of traders, etc.
A14: I think you are talking about the transparency of Deri Protocol.
First of all, please note that there are 2 levels of transparency:
1. how much information is technically available in all possible ways?
2. how convenient can such information be read, especially for people who are not so tech-savvy (for example, those unable to query blockchain)?
For 1, Deri Protocol is fully transparent. That is, every single bit of every transaction (including everything that you mentioned here) is transparent through blockchain. If you are able to query blockchain, you can find everything. There is absolutely nothing we can hide.
However, for 2, I agree we have not made all the information super convenient to retrieve so that even non-tech people can easily get it.
We have an info page (https://info.deri.io/) but the information is not that comprehensive. This is the part we should have done better. We will keep improving this page and add more info onto it.
Host: That’s all for today, Thanks OxAlpha. The final AMA in 2022 ends! Happy New Year to everyone!
Though 2022 is tough, never give up, join hands and look forward to the turnaround in 2023
OxAlpha: Tough 2022 indeed! But we are still here, evolving to be even better and stronger!
Tank you all Deri fellows! Thank you for being here together with Deri! You are the reason we can carry on and keep building!
Wish everyone a happy new year! Together let’s go for 2023! Bye now~ See you in 2023!
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.
