Deri AMA Recap on July 28th, 2023
On July 28th, Deri launched an AMA. Let’s watch the detailed & complete AMA recap below:
The AMA Entrance: https://discord.gg/dQyuBkBKBe
OxAlpha: Hi everyone! I hope you are all doing well.
Let me start with the recent updates.
1.Deri V4 will be launched in the near future. We reveal the features and advantages of V4 in advance:
① Flexibility of network
② Consolidated liquidity for enhanced trading
③ Faster execution and reduced gas costs
④ Expanded symbol offerings, especially for everlasting options
⑤ DERI token as base token
More details of these V4 features: https://medium.com/@deri-protocol/deri-v4-empowering-defi-traders-with-unparalleled-flexibility-liquidity-and-capital-efficiency-7c1dac6dce58
The overview introduction of V4 has been released: https://deri-protocol.medium.com/introducing-deri-v4-the-dawn-of-cross-chain-decentralized-derivatives-trading-706d55e97376
2. New listings:
Perpetual futures:
XRPUSDT
Everlasting options:
BTCUSD-32000-C
BTCUSD-32000-P
BTCUSD-28000-C
BTCUSD-28000-P
ETHUSD-1800-C
ETHUSD-1800-P
ETHUSD-1600-C
ETHUSD-1600-P
3. The switching feature between Deri Pro and Deri Lite has been revamped into a more concise form.
Let me move forward to the questions now.
Q: Hey, gamma is awesome. More altcoin gamma, when?
A: We are also looking forward to rolling out more altcoin gamma. However, the gamma swap is still in the beta stage, so we gotta be a bit conservative with such new stuffs. There are still some issues with the product. We will move to cover altcoin gamma when all the issues have been resolved.
Q: With V4, What is the special or better thing when comparing Deri to the Deri’s competitor (Dydx)? We need to have the target to fight. We can beat Dydx directly.
A: For the first question, I think I already addressed above. Also, the article I attached was addressing this topic in more details.
As for “the target to fight”, of course Deri and DyDx, and several other decentralized derivative platforms, are competitors. However, among all the derivative platforms, I think Deri and DyDx represent too different approaches, which will probably coexist in the future.
Q: Has Deri still have partnership with Venus Protocol/XVS? They has new isolated lending lanching with 10 partners, should we be there? Thanks.
A: Yes we are still in partnershipt with Venus. Thanks for the suggestion. We will talk to the Venus team to figure this out.
Repeat suggestion: A history of funding fees paid to me on the account display.
A: This is an interesting point but things are a bit tricky. I guess “a history of funding fees” refers to the series of funding fee transactions displayed in centralized exchanges such as Binance.
However, the funding fees on Deri are paid continuously. So there is no the same kind of “history of funding fees” you were talking about. A more reasonable “history of funding fee” in Deri’s case would be something like a curve displaying the accumulating rate of the funding fees. But that’s very tricky to be displayed. I will discuss with the team how this can be addressed. But thank you for bringing this to our attention.
Request: ETH 2200 C / P positions please
A: Will forward this request to the team.
Feedback:
1. The funding is too low for shorts. No one can enter the market without causing a massive change in the funding rate. Entering .1 even causes the funding to change by 100%, that is so broken.
2. Also the entry and exit cost is absurd.
A:
1. The theoretical funding fee is given by fair pricing. The funding fee has been very low recently is largely due to the implied vol on the market has been very low for a while.
Look at this DVOL number, this is almost the all-time low volatility for BTC. For this part, there is nothing we can do about.
And the slippage you were talking about was due to the liquidity for the Gamma swap is still not very good. For this part, we will see if we can optimize the liquidity for Gamma swap from the algorithm’s perspective.
However, I want to point out that the first factor is the primary reason for the low funding fee. If the VOL keeps being low for BTC or ETH, the funding fee cannot be high. However, I think this situation will change soon.
2. You are talking about the transaction fee. The current somewhat unreasonable transaction fees are duo the fee algorithm. The fact is, we have not yet figured out the transaction fee algorithm that makes the most sense, since this product is so new. But we are still working on this. I think we will have a solution soon.
Suggestion: We need More BTC/ETH strike prices . More underlying choices as well.
A: Since the last upgrading, we are now providing more strikes for the options. And this will be further optimized in Deri V4.
We are also working on providing other underlying choices. Meanwhile, you can also let us know what the underlying choices you want the most, additional to the already supported BTC/ETH/BNB.
Suggestion: Does the Deri team not conduct regular checks on the project? Is it only through user feedback from external sources then you will discover issues?
It depends on the project team’s automation testing capabilities. For issues like APY being 0, if there are unit tests, you should be able to identify it immediately without relying on user feedback.
Some issues may be deeply hidden, which is understandable, but if something as critical as APY being 0 requires external feedback, it suggests that the project’s unit testing is likely insufficient.
For a project, unit testing is essential for monitoring and backtesting UI data, contract state variables, and contract asset data. This is a one-time effort, and once set up, regular automated test can detect simple issues by itself.
A: We do conduct checks. However, it can never be as thorough as the feedbacks from all the users. Your suggestion on the testing work is very helpful. I will discuss with the team on establishing the testing framework. Thanks for pointing this out.
Q: I don’t really understand the advantages of trading on Deri compared to CEX (e.g., Binance) or DEX (e.g., GMX, DYDX). As for the advantage of decentralization, Deri is not purely decentralized. Its upgradable contracts and oracle mechanism are not entirely decentralized. Moreover, the security aspect is even more uncertain.
A: Contracts being upgradable or adopting oracle mechanism does not affect the decentralizedness. FYI, all the smart contracts adopting the proxy framework are upgradable, which is standard practice in DeFi. As long as the upgrading is managed by timelock, which is the case for Deri, decentralizedness is not compromised.
As for security, this has always been out top priority. Deri has been one of the most secure DeFi protocol since its launch 2 years ago. There was only one non-serious attack that ever happened to the protocol during it’s 2-year live time. I think as far as security is concerned, Deri Protocol has been working very well.
Urging: Please prioritize the implementation of the profit-limit and loss-stop features.
A: Profit-limit and loss-stop will be rolled out in a few weeks. We have already finished the on-chain part. We are finishing the front-end work right now.
Suggestion: Deri launches its App.
A: Launching app is a bit difficult for DApp. The App needs to manage your private key, which makes it essentially a wallet. But for wallet, I guess most people will go with the existing ones, due to the security concern.
Suggestion: When can the percentage for the simulated profit and loss be changed to the input value? It was mentioned a long time ago.
A: Hmm, I don’t remember I got this suggestion before. I must have missed it. Sorry about that. I will forward the suggestion to the product lead. Thank you!
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.
