Deri AMA Recap on June 16th, 2023
On June 16th, Deri launched an AMA. Let’s watch the detailed & complete AMA recap below:
The AMA Entrance: https://discord.gg/dQyuBkBKBe
OxAlpha: Hello everyone! Let me start with updating the recent improvements & updates of Deri. First of all, partnerships:
Deri Protocol x Particle Network: The partnership makes traders from centralized exchanges continue their traditional registration methods on Deri, such as using email, Facebook, Twitter, etc. This is a comfortable transition from centralized to decentralized exchange.
The specific registration process is quite simple (just like the old web2 way). See the picture below.
Deri Protocol x zkSwap Finance
Deri Protocol x Layer2 Master, which is a media hub focused on updating the best News, Insights, Knowledge, and Opportunities on Layer 2 projects. Connecting Projects & Audiences.
Secondly, the New listings:
We made an optimization to the protocol so that we can support option strikes more dynamically. With the optimization, we recently added the following option strikes so that the option traders will have more ATM options:
ETHUSD-1800-C
ETHUSD-1800-P
BTCUSD-26000-C
BTCUSD-26000-P
BNBUSD-250-C
Please check out on https://deri.io/#/index
All right, now let’s get to the questions.
Q: When will we bring back the LP to Arb / Bsc dex? The LP is so low now!
A: In the end of the day, it’s the effective liquidity for trading that matters, which is determined by the TVL and capital efficiency together. While the current TVL on Deri pools are not very large, the effective liquidity for trading is not that bad, due to the extreme capital efficiency.
That being said, we are constantly working on providing better effective liquidity for trading. V4 will introduce a completely new architecture that will substantially improve this. In V4, we will totally get rid of the issue of liquidity fragmentation in the current V3 design. Traders will experience a much better effective liquidity.
Q: What is main target or the most important product of Version 4? Is it related to increasing the number of trader using Deri?
A: The ultimate target is, of course, to promote the usage, which is mainly measured by trading volume. Increasing the number of traders is part of that too.
This will be achieved by a uniformed liquidity pool across different chains offering much better liquidity.
Q: May I ask which country the Deri team is based in, whether you have applied for compliance licenses, and whether there is a company office?
A: We are decentralized in a number of countries. The core dev team is based in Singapore. I myself am one of the so-called “digital nomads” (in New York for this month, not sure about the next stop). There is no company office.
We have not applied for any compliance license as there is NO license for any DeFi project to apply at all.
Q: Under the supervision of future centralized policies, decentralized exchanges have more opportunities. How Deri will arrange it next?
A: I think the best thing we can do, which is also what we are doing, is to make Deri Protocol a great replacement for the CEXs while keeping it decentralized. I cannot predict the exact time of the transition from CEX to DEX, but we can work to make sure we are ready for it when it comes.
Q: When will V4 be live?
A: While we kicked off the development, we cannot promise an exact delivery date. My estimate would the end of Q3 or early Q4.
Suggestion: Promptly launch the features of profit-stop, loss-stop & pending orders.
A: Stop orders are under development.
I am not sure what you meant by “pending orders”. If you were referring to the unfilled limit or stop orders, then of course it will be there. But please note that’s just a status of limit or stop orders, not a feature. You will surely have orders in pending status if you place limit or stop orders.
Q: As for the last Zk hacker incident, it can be said that it was a low-level mistake. Everyone is concerned whether such vulnerability attacks will happen again after upgrading to the V4 version. What measures does the CEO have to prevent this problem from happening?
A: First of all, please note that “zk hacker incident” has nothing to do with the protocol. It’s a phishing attack on the treasury’s wallet. There was no bug or vulnerability in the protocol at all. So there is no such a thing as “vulnerability attacks will happen again after upgrading to the V4 version”.
Regarding preventing the incident from happening again (which is a separate issue), we already wrote an article explaining how we will improvement the management of the treasury assets.
Suggestion: A new project, Maverick Protocol, which can solve Defi liquidity provider and market maker problems in Defi.
A: Thanks for bringing this to our attention. Yes, I looked into its features and design after your reminder. What’s special in Maverick is the introduction of the so-called modes (mode right, mode left, mode both). The “modes” are to mimic the behaviors of traditional market makers to actively move their bid (corresponding to mode right) and ask (corresponding to mode left) orders up and down according to the price fluctuations. It is indeed a very interesting design.
However, the whole point of the modes is to make the liquidity concentrated around the current price, which was already handled by DPMM in a similar (but better) way. I don’t want to steal the credit though: such a design was already organically part of DODO’s PMM architecture, and then of course inherited in our DPMM. PMM (and hence DPMM) is concentrating liquidity more elegantly than this “mode” thing introduced by Maverick.
Suggestion: Improve the depth issue of the Inno pool.
A: This will be substantially improved in V4.
Suggestion: Establish a Deri OTC group for large holders. In this way, the coin price can be more stable and not affected by disturbances and can consolidate community development.
A: As much as we would like to help, we are not sure if we would be able to. OTC trading is not as simple as setting up a group. Just look at how OTC trading is carries out on those CEXs, quite a few infrastructures are involved. The platform needs to play the role of dealer (freeze one side’s asset temporarily), in which the two sides need to trust the platform. This involves trust of a centralized entity, which is what we try to get away from (we ask the users of Deri Protocol not to trust us the team — you need to trust the code instead).
That being said, you did mention an interesting demand. We can think about what we can do.
Suggestion:Use Deri tokens for IEOs on the platform, connect with some impressive projects to attract retail investors to the market.
A: I think you might have some misunderstanding on what Deri does. IEO is about spot trading while Deri is in the derivative sector.
If you are talking about being the first platform offering the derivatives of some tokens, that is possible. And we actually did that in the Inno-Zone.
Suggestion: The execution fees on the zkSync chain are too high, and the chain is not stable. Only after operating did they discover such high fees had been deducted. Multiple new users have raised this issue. The user experience is not good, I suggest making an announcement about this in advance.
A: Yes, we are aware of this too. However, it’s not true that “Only after operating did they discover such high fees had been deducted”. With most of the wallets, the gas cost is disclosed before you confirm the trade. For example, for Metamask:
Suggestion: Hi just wondering the best way to calculate P/L. I’m finding it quite hard to track each trade’s P/L through the trade history tab. With the way that margin adjusts dynamically, it seems like the only real way to calculate P/L is by keeping track of your net deposits into your margin account and then deducting it from your current available margin. Is there a way to calculate P/L per trade without doing something like screenshotting unrealized P/L before submitting a closing trade?
A:Let me try to understand your demand. You want to see the P/L of a closed trade in the trading history. Is that right?
This is not currently displayed in the trading history because the logic is not as straightforward as it might sound.
While you can defined the P/L of the closing trade for some simple situations (e.g. you open X long of something and fully close the position later), in more general cases the P/L of a single trade is not a very well-defined term. This is because people don’t always fully close a position (you can long 5, then short 10, then long 20, then short 15), so you cannot always associate a closing trade with an opening trade.
That being said, since you raised this issue, we will investigate into it and see what we can do about it.
Suggestion: How is cross-chain implementation achieved at the V4 base layer? Will there be any hacking incidents again?
A: The general idea about the cross-chain architecture of Deri V4 is introduced in this article:
https://deri-protocol.medium.com/introducing-deri-v4-the-dawn-of-cross-chain-decentralized-derivatives-trading-706d55e97376?source=user_profile---------0----------------------------
We are certainly very much aware of the tricky parts of building cross-chain protocols. We are learning from all the past experiences of the cross-chain projects and incidents, and designing Deri V4 to be the most reliable cross-chain protocol.
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.
