On Wednesday, Mar 22th, 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 the recent progresses：
- The most significant news is that the groundbreaking new product, Gamma Swap, which is set to refresh the DeFi industry, will be launched soon. In summary, Gamma Swap can be a useful instrument for managing risks in a volatile market. You can explore more of its other use cases, and welcome to share them. Still confused about the concept of Gamma Swap? Get a head start by learning about it now：https://docs.deri.io/library/academy/gamma-swap
The countdown to Gamma Swap’s launch is on, so stay tuned!
2. Deri has been thriving on Arbitrum for approximately 10 months now.
We’ve hit some amazing milestones:
① $10B Total Trading Volume
② 30,000+ Transactions
③ 7,500+ Unique Users
3. Deri’s 2nd Anniversary Carnival is going on smoothly. There’re giveaways of NFTs worth $100,000 for newcomers, $40,000 trading fee rebates for existing users, and free trading opportunities for some users! With only 9 days left until the event ends, users who haven’t participated yet should hurry. Event link: https://deri.io/#/anniversary
Additionally, a big thank you to the community for celebrating Deri’s birthday! We appreciate the birthday cards you’ve created for Deri!
OK, let’s get the questions.
Q1: What is the most important function of Gamma?
A1: I think it depends on what kind of users you are.
For professional traders, Gamma Swap is the first-ever derivative to let you trade pure Gamma. While Gamma is one of the most important Greek letters in finance, it was never possible to directly trade Gamma before. And now you can!
There are many specific use-cases in this professional way. For example, Gamma Swap can be used as a way to hedge the impermanent loss of Uniswap (which is negative gamma from quantitative financial perspective)
And for the not-so-professional traders (if you don’t know what Gamma is, you probably belong to this category), you can think of Gamma Swap as a new way to bet on how the price will move in the future: instead of betting on going up or down, you can bet on fluctuate-either-up-or-down (but not sure about up or down) or staying-at-the-current-level.
Q2: Could we say that : Deri is the only one platform which can deploy Gamma in over 1000 Defi projects?
A2: I think “can” is a very subjective word.
However, Gamma Swap is completely innovative and original. That is, we started from the idea, then constructed the theoretical concept, and then implemented it. As far as I know, Deri is the only platform that actually does this.
Q3: When Gamma swap?
A3: Very soon. We are doing the last internal testings.
Q4: Will the DAO airdrops be used to increase promotional efforts in the Arbitrum ecosystem?
A4: I only got to know about the airdrop today. But I think the answer to your question is yes.
If you are talking about the benefit from ARB airdrop, I think they will be used to promote Deri’s Arbitrum ecosystem, which will benefit the DERI holders.
Q5: Suggestions: A live dashboard for greeks of power perpetuals
A5: Assuming you are talking about something like this for options, I think it’s a very good suggestion. I will forward it to the product guy.
Q6: Suggestion: Need estimates for daily funding fee levels.
A6: Not sure I got your question. If you are talking about this, we have it right on top of the trading panel.
Q7: Suggestion:Financing costs should not be set to 0 after each new transaction. I know it doesn’t affect the bottom line. However, for better transparency, it would be really great if you knew exactly what financing costs were incurred from the moment the trade was started until it was closed.
A7: By “Financing costs”, I think you are talking about funding fees. And by “set to 0”, I think you are talking about the procedure of settling the accrued part upon every trading function.
You have a very good point. However, please understand our logics are all coded with smart contract and there are quite a lot of constraints. As far as funding fee is concerned, it is really difficult to implement in another way (by smart contract)
However, I think all you want is to see the funding fee for a position as long as the position is live. While we might not be able to change this in the smart contract level, we might think of a way to get this data and display it in the front-end. I will look into this together with our colleagues and see if we can get what you want.
Q8: Suggestion: It would be incredibly helpful if there was a way to track the results the depot is generating. With a track record that may also show important key figures such as a Sharp ratio or something similar. Most users of large brokers are used to this and like to use it. If we’re going to be big, that should be implemented too.
A8: I am not sure I got this question. If you are talking about the LP net value, we have it (check info.deri.io). As for the metrics of the performance, e.g. Sharpe Ratio, I am not sure how useful that is. But I will discuss this with the team.
Q9: What is the progress of limit orders?
A9: We discussed internally and decided to move it to the next version of Deri, in which limit orders and stop order can be natively supported.
Q10: The daily financing costs should also be provided with a percentage for the options. It is done with futures and powers. Why not the options?
A10: Again, assuming “financing costs” refers to funding fees. It does not seem to make too much sense to calculate the funding fee as a percentage. What denominator do you think we should use for the ratio?
Q11: The strikes of the individual option contracts are much too far apart. For those who want to sell the options to arbitrage, it can be annoying when a long sideways market expires that was near the last strike because he rolled the contract. Thus, almost no option premiums can be earned. The options must not be out of the money for so long, otherwise the platform quickly loses its appeal. So for BTC, strike in increments of 5000 and for ETH in increments of 500 would be great.
A11: Yes, we noticed that problem too. (I especially feel this pain as an option trader myself. I agree with strike in increments of 5000 is better for BTC). I believe I discussed this issue before. It is really due to a constraint of the protocol that we can not add too many strikes. However, this problem will be resolved in the next version where the protocol can add/remove strikes more dynamically.
Q12: Will there be a dapp for DeriAI or how will it work?
A12: Yes there will be a Deri AI dapp. At this stage I can only tell you about the general idea. You will input your return and risk preferences to the Dapp and let it suggest a portfolio for you to hold. Then once you deposit the capital, the Dapp will construct the porfolio for you and maintain it (i.e. periodically rebalance it).
Q13: How will nft derivatives work?
A13: It works quite similar to the current derivatives except the underlying are NFT prices, instead of token prices. You will be able to long or short again the NFT prices that you feel bullish or bearish about.
OxAlpha: So that’s all. Cool.
If no other live questions, then I am gonna get back to work now.
Please stay tuned for Gamma Swap. See you in the next AMA!
Bye for today~
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.