Deri AMA Recap on Feb 21th, 2023
On Tuesday, Feb 21th, Deri launched the first Deri AMA in 2023. The special feature of this AMA was the insider revelation of the upcoming Deri’s 2nd Anniversary Carnival. Let’s watch the detailed & complete AMA recap below:
The AMA Entrance: https://discord.gg/dQyuBkBKBe
OxAlpha: Hello, Deri fam! It’s awesome to meet you all again. Let me start with the summarizing part. Here are the Deri’s recent progresses:
1. The DERI/ETH pair is now available on Uniswap Arbitrum! Please try it out:
Trade DERI on Uniswap Arbitrum: https://app.uniswap.org/#/tokens/arbitrum/0x21E60EE73F17AC0A411ae5D690f908c3ED66Fe12
Add liquidity: https://app.uniswap.org/#/add/ETH/0x21E60EE73F17AC0A411ae5D690f908c3ED66Fe12/3000
2. We have some new partnership:
Deri Protocol x Unipass
Deri Protocol x Celer
Especially, thanks to the partnership with Celer, now users can transfer $DERI between Arbitrum network and Ethereum network rapidly & safely. This is especially meaningful for the Arb-to-Eth transferring, which takes 7 days via the official Arbitrum bridge. Give it a try: https://cbridge.celer.network/42161/1/USDC
3. New listings of everlasting options:
BNBUSD-300-C
BNBUSD-300-P
BNBUSD-250-P
BTCUSD-30000-C (on DERI-based pool)
So that’s the part for the past.
Now, let’s talk about what’s coming up.
We have an exciting moment: a sneak peek of the wonderful activities planned for Deri’s 2nd Anniversary Carnival!
Join us in celebrating DERI’s 2nd Anniversary Carnival, from February 23 to March 31! With a total reward pool of $150,000, we have prepared exciting activities for both new and old users to boost trading on the DERI protocol platform.
New users can enjoy free transaction fee rebate NFTs and lucky draws, while old users get a 10% fee reduction during the carnival. Plus, we have partnered with top industry players such as AribitrumNewsDAO, UniPass, Arbitrum_Today, and more to bring you a fantastic celebration.
Don’t miss out on this opportunity to win big and be a part of the DERI community. Join us now and let’s make history together!
Host: Awesome, Extremely looking forward to it! Now let’s move to the Q&A session~
Q1: How is Deri planning for Web3? Any partner is working with us on this part?
A1: Deri is THE derivative protocol of Web3. As for partners, there are several different partners working with us on different aspects. Actually, I just mentioned two.
Q2: It is also needed to have more traders using Deri platform, any plan to increase traders using us? Or do we need to work with a big Cex to take a small trader vol from them to use Deri derivative platform? It likes promotion for them when trading in Deri protocol!
A2: Our operation team’s primary goal is to grow the trading volume as well as the trader numbers on Deri. That is what their job is all about. As an example, a lot of things I just talked about on the 2nd Anniversary is to bring more traders to Deri. And there are more plans of course.
As for working with a big CEX to take their trading volume, I am not sure why a CEX would be willing to share their trading vol with us (or with anyone). So I think some part is missing from your suggestion. Would you mind elaborating on your idea?
Q3: As a Deri holder for ~ 2 years, I have not seen any big marketing directly from Deri! Should we have it soon? Thanks.
A3: I am not sure about your standard of “big”. Does the 2nd Anniversary count as a “big marketing event”?
Additional to all the marketing our op team has been doing, I want to point out that it’s not only our job to promote Deri. You can participate too! Why not tell your friends about Deri Protocol and invite them to try our products? For them, your personal promotion is more effective than any of our marketing actions, isn’t it?
Q4: What’s on Thursday?
A4: Thursday is the official starting day of Deri’s 2nd-anniversary carnival.
Q5: Will we put more effort into Arbitrum, instead of BNBChain?
A5: As the team building Deri Protocol, we deployed the protocol on the two platforms in the same way. The community & markets are to choose which they prefer. For example, we see the TVL and trading volume on Arbitrum increased a lot on Arbitrum recently, which is the choices of the traders and LPs. This is not our call.
Q6: Do we have plans to expand to other chains?
A6: The second question is a very good one. I want to talk a bit more about this.
First of all, Yes, we do!
And we want to do this in an effective and scalable way. In my opinion, the current one-chain architecture of Deri Protocol is not quite scalable in terms of chain expansion. (This is part of the reason that we are only on Arbitrum and BSC for now.) Because, every time we deploy on a network, we need to start from zero. All the liquidity pools are independent and the liquidity is fragmented. And this is the problem our V4 is going to resolve. Deri V4 will adopt a cross-chain architecture so that whenever we deploy on a new network, it’s a natural expansion, rather than a start-over-from-zero.
Just adding more color to our chain expansion plan: for the new networks to deploy Deri Protocol, we are especially looking into the ZK roll-ups. The ZK roll-ups are believed to be the ultimate L2 solution for Ethereum. And some major ZK roll-ups will go live later this year. We are following their progress closely. You all will be posted with more updates on this thread.
Q7: I was wondering, why are there so few everlasting options? In a traditional option exchange, it has strikes every 100$
A7: Very good question. I agree with you that our strikes are very scarce, compared to CEX like Deribit. This is partly due to a design constraint of the protocol: we can not support too many trading symbols in one liquidity pool simultaneously. So, for options, we have to reduce the number of strikes being supported. We choose to only support the most important prices.
However, as a trader myself I feel the same pain. And the team is working on this. We are improving the architecture of the protocol so that, even though we can still only support a limited number of strikes, we can support them dynamically so that we can always add more strikes around the current price. After this optimization, you will always have more strikes to trade around the current price.
Please stay tuned for this optimization!
Q8: When will there be more Deri-Based Options for BTC with a higher Strike?
A8: Sorry we’ve been busy with a lot of building work and kind of ignored the Deri-based pool. Thanks for bringing this to our attention. What strikes you suggest we add to the pool? I will forward the request to the dev team.
Q9: Binance BSC supports projects on its network more and you move away from Binance. when is Deri Arbitrum added to MEXC/ Gate.io exchanges?
A9: Well, we are NOT moving away from BSC. If you are referring to the recent launch of the Uniswap DERI-ETH pair on Arbitrum, don’t you think it’s just something that made it equal for our Arbitrum ecosystem (there used to be DERI on Pancake but not on Arbitrum)?
As for supporting Arbitrum DERI by the exchanges, that is totally their call. We neither have a say nor any information on this.
(However, I don’t think that’s a problem at all, given that it’s so easy to bridge the DERI tokens across all the networks.)
Q10: Suggestion: Would like to take long positions on Deri protocol. Is there a way to know what is the max size of long I can take at one time? i can’t see the open interest limit number on your platform. Suggest developing such a function.
A10: I see your point. I am taking note of this one. Will discuss with the team how to make this limit more transparent to traders.
Q11: I was trying to understand how your pricing mechanism works but I can’t figure out why is it in the pricing formula. What does the funding frequency have to do with the price of the product? Could you explain, please?
A11: Oh I see your question.
It’s really because for different funding frequencies, the theoretical prices are slightly different. Technically, this term was originally introduced by Dave White. And if you read the appendix of his original paper, which proves the pricing framework of everlasting options, the funding frequency matters in that derivation.
For example, for an everlasting option with a funding period of 1 day, if you charge funding once a day (and every time100% of the funding fee), or you charge it twice a day (every time 50% of the funding fee), these two ways of funding will lead to two different theoretical prices.
Technically, people don’t pay funding when they“buy” it. Instead, they continuously pay/receive the funding when they hold the long/short position.
OxAlpha: Well, guys, don’t forget the exciting 2nd anniversary Carnival!
#DeriTuns2 !
Bye now! See you at the next AMA.
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.
