Deri AMA Recap on Nov 18th

On Friday, Nov 18th, Deri launched a Discord AMA with Deri’s co-founder, 0xAlpha. In this AMA, the community’s all questions & suggestions piled up during the time were be answered & fed back.

The AMA Entrance: https://discord.gg/dQyuBkBKBe

Let’s watch the detailed & complete AMA recap below:

OxAlpha: Hello everyone! It’s been quite a period! I hope you all stayed SAFU in this volatile era.

Let me start with debriefing about the updates.

1. The most noteworthy improvement is that Deri newly launched a simple version of deri.io, Deri Lite.

The highlights of Deri Lite:

- User-centered design, extremely easy to use.
- Optimized trading experience, simple trading process
- up to 25x leverage
- Isolated Margin mode

Try the instant trading experience: https://lite.deri.io/

If you have tried it, I think you must have already noticed the difference.

2. New listing: deri.io: ETCUSDT perpetual futures, APTUSDT perpetual futures

3. Deri Protocol joined the early-bird program at Binance Oracle.

4. Deri Protocol established partnership with Assure Wallet & Math Wallet.

5. Deri Protocol participated in 2 weekly Defi Digest (a salon launched by BNBChain). The 2 themes are: 1. Derivatives 2. Real Yield

That’s pretty much it for the updates.

Now I am moving to the questions.

Q1: Is there documentation on the volatility oracle? oraclum.io doesn’t seem to be used or mentioned by anything, and it doesn’t have documentation on what its data source or volatility measure is.

In particular, I’m curious what makes it credibly neutral, since it’s hard to verify against other data sources if it doesn’t define what measures it is using.

It claims to be “completely open-sourced” but there’s no source code for anything but the website containing that text.

A: WOW, this one has been here for a while.
I will talk to the Oraclum team regarding the points you raised here (e.g. open source).

As for the vol, this one I can answer it right away: It’s simply the DVOL taken from deribit.com.
(https://insights.deribit.com/exchange-updates/dvol-deribit-implied-volatility-index/)

So it’s not “hard to verify against other data sources”. To verify, you just need to compare it with the original data feeds from Deribit.

Q2: Can we please get some API doc so we can start building on the exchange? Also would be really helpfull if we can have some trigger order so when index or last price hit , then it will place market order.

I understand we can really have limit order on a dex without orderbook, but where missing out on taking profit or enter a position if were not awake watching the screen.

A: First of all, limit order and stop order are two functions that I mentioned we were going to roll out. I am sorry they got delayed as some other tasks poped up our pipeline. We are getting back on this soon.

As for the API doc you asked about, if you want to build thing on top of Deri Protocol, it’s not through API. Instead, it’s calling the smart contracts of Deri Protocol on chain. Since Deri Protocol is open-sourced, so technically you already have the “API”. Chcke out our community website (https://deri.fi/). These are all projects developed on top of Deri by community developers. And they are calling smart contracts, not API.

However, I understand it won’t be easy to understand the smart contract code. So, please directly contact us (you can dm me or the admin in the channel) if you want to build something on Deri. You are more than welcome to do that!

Q3: What is Deri marketing plan in 2023? Dex is focusing while cex got problem, time to explore/expand deri now.

A: This one is a bit too big to be addressed within an AMA. Put simply, we will focus more on promoting the usage of Deri in all kinds of specific scenarios. For example, asset management product with built-in derivatives is one you will see very soon. Stay tuned.

I agree with you that more and more people will realize DEX is THE solution to avoid the inevitable problems like FTX which is due to its centralizing nature.

Q4: I love your protocol! Gorgeous work. I am using for the moment the opportunity to sell options to earn rewards. There are 2 things I would like to see implemented:

If I am selling covered Call Options, there is a liquidation price displayed. Would be great, if the protocol could notice, if there are assets in the deri wallet which do back up the options.

2nd: Limit-Orders. Are they in planning? I would like to use deri-protocol for trading perpetual futures. But without limit-orders it would be uncomfortable.

A: You raised a tricky UI situation, which we are not handling very well yet. However, this is a UI problem only, not a protocol one.

The liquidation price currently displayed on the trading interface does not take into account the value change of the collateral. So it’s not correct in your case. However, please notice this liquidation price is only a front-end calculation. It DOES NOT mean your position will actually be liquidated at the price. In other words, the protocol DOES take into account that assets in the deri wallet do back up the options. If your covered call is fully covered (e.g. you are selling 1 OTM call option of 1ETH with 1ETH in your margin account), your position will NOT be liquidated.

We will think about how to take care of this front-end information. Thanks for bringing it up.

As for limit orders, yes, we are working on it.

Q5: Have a plan launch BNB option? Need BNB 200-P, BNB 250-P

A: We are working on this already. To be more specific, to provide BNB options, we need to have a volatility solution first, and we are almost there. Once this part gets sorted out, the following steps are very straightforward.

Q6: This is the issue of gas fees. I have been trading on BSC, and the gas fee is deducted from BNB. I try to trade on Arbitrum, and the deducted fee is also BNB? There is a problem of decentralization here. With the FTX accident today, is it possible for Binance? So, is deri’s gas bound to BNB a risk? Is there any possible solution? For example, use ETH or other chain coins to burn gas? This is true decentralization.

A: I suspect it’s a displaying issue either on our website or your wallet.

There is no way you can pay BNB as gas when trading on Arbitrum — it’s definitely ETH that you paid as gas on Arbitrum.

Could you share with us maybe the screenshot where you see BNB paid as gas for Arbitrum? If this is our webpage, then there is a front-end bug we need to fix. If this is your wallet, then there is a displaying setting error in your wallet.

Q7: Could we change the volume to “Notional”? (on stats page)

A: When referring to derivatives, volume is notional. We just did not separate the notional of futures from the notional of options. We might make it more clear.

Q8: Can you share the vesting schedule in text format (vesting vault contract)

A: The vesting information can all be found in the token page on etherscan. We could have this displayed in “text format” but this work won’t be highly prioritized as our pipeline is pretty full.

Personally I don’t think the vesting schedule is a very helpful info as DERI is a token of nearly 2 years old. Usually you are more concerned about the vesting schedule for upcoming or newly generated tokens. For tokens like DERI, you have a lot of other info to look at when assessing the token.

Q9: The initial margin requirement is adjusted to 0.05%. To me, increasing the margin just decreases the impact but mechanics are still there? Also I am not seeing any commits at Github regarding to this… Just trying to ease my mind, so would appreciate the explanation.

A: The IM adjustment was only part of the solution. Please see our comprehensive post mortem report for the whole solution.
https://deri-protocol.medium.com/post-mortem-of-the-2022-10-28-attack-on-deri-protocol-3eb4f1ecd49d

As for commits, I think you are referring to that no commits was made to the following repo https://github.com/deri-protocol/deriprotocol-v3

However, this is where we made our code open-sourced. It’s not our working repo. So you don’t see real-time commits in this repo. Sometimes we are behind on syncing everything in this repo. Going forward, we will make the synchronization more timely.

Q10: Do you have the plan for adding LP on Arbitrum chain?

A: Right now the TVL on Aribitrum is not ideal. We are working to make better product so that more real yields will be created for the LPs so that the TVL will increase. Other than that, I don’t see any effective and sustainable way to increase the TVL. It is the only ultimate solution.

Suggestion 1: Providing an instance of the lens contract might be helpful for external devs.

A: That’s a good suggestion. we will make an instance of such.

Suggestion 2: daily transaction data, separate statistics icons for contracts and options chart

A: Suggestion noted. We will look into how to make this more clear.

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.

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Deri Protocol = (Perpetual Futures + Everlasting Options) x Decentralized.

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Deri Protocol

Deri Protocol = (Perpetual Futures + Everlasting Options) x Decentralized.