Deri AMA Recap on November 24th, 2023

Deri Protocol
6 min readNov 24, 2023

On November 24th, Deri launched a Deri V4 Exclusive AMA. Let’s watch the detailed & complete AMA recap below:

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

OxAlpha:

Hello, dear Deri fellows!

Such an exciting moment to do AMA!

I hope you are all doing great and you have all tried out Deri V4.

The most worthy of celebration is of course that Deri V4 was officially launched on Wednesday (November 22). Also, it is live on Arbitrum, zkSynce Era and Linea.

Now it’s time to dive into the world’s first-ever cross-chain derivatives trading : https://deri.io/

Why Deri V4?

1.Flexibility of Network
2.Consolidated Liquidity for Enhanced Trading
3.Faster Execution and Reduced Gas Costs
4.Expanded Symbol Offerings and More Option Strikes

Learn more: https://github.com/deri-protocol/whitepaper/blob/master/deri_v4_whitepaper.pdf

What will we do next?

Expand to more Layer 1 & 2 networks, driven by governance votes.

In parallel, the we are dedicated to evolving with traders’ needs, continuously developing new features

1.Limit and stop orders
2.DERI token as base token
3.Optimized Gamma Swap
4.More..Stay tuned…

That’s the announcement part. Now let’s get to the questions. I think there are a lot of them.

Q: Will Deri V4 support stoploss function for trading?

A: Yes, we are on that already. Should be available in several weeks.

Q: Do Deri dev try to have any new partner to use Deri product in thier dapp? Like venus (xvs)….

A: Yes, of course. The first step is to launch Deri V4. And once it’s live, we will focus on the usage promotion, which include trader usage and dapp usage. The latter is what you were asking. That is an important part of the expanding plan.

(However, I would like to point out that Venus might not be a good example for such a partnership: as a lending protocol, Venus is more infrastructure-like than Deri. So it’s more likely for Deri to use Venus rather than vice versa)

Q: I don’t see a single Deri coin pool on V4. Can I earn fees/liquidations with Deri token some how?

A: Well, there will be no “Single DERI coin pool” (like the V3 DERI-based pool) on V4. Instead, DERI will be supported as one of the base tokens in the V4 main pool (there is only one pool for V4 as of now). Which means, LP will be able to use DERI to stake as liquidity, and users can trade derivatives in the main pool with DERI as collateral. In other words, DERI stakers will earn real yield (the “fees/liquidations” that you mentioned) just like USDC stakers of the main pool. That’s a significant upgrade for DERI holders.

This function will be live soon. Stay tuned.\

Q: Are the TVLs of three V4 pools the same? If I add liquidity to Linea, but someone else trades on Arbi, I can still get the commission, right?

A: Well, you spotted some not-so-good design of the webpage. The fact is, there is only one unified pool. This is actually one of the most important points of building Deri V4. Your confusion is caused by that fact that the current “Pools” webpage is a bit misleading: it makes you think that there are multiple pools with the same TVL. The three “V4 pools” that you see on the “Pools” webpage are actually just different entrances (via different chains) to the same pool. We will fix this confusing desing very soon.

The answer to your second question is Yes. Again, that’s the point of making one single unified pool.

Q: 4 positions, close the V3 positions, and open new positions on V4. These are wasted transactions for me. The team should provide a subsidy, and the transaction fees should be stopped these days.

A: What we have deployed is a decentralized protocol, which means we CANNOT just “stop” the “handling fee”. Maybe Binance can do that, but we cannot. We are just the deployer of the protocol, we are not running a CEX. Also we don’t earn a single cent from the trading fees. The LPs earn them.

As for the fact that you have to close and reopen your positions, I am sorry for the inconvenience and the extra costs. But to be fair, that’s an advantage for the LPs (and indirectly benefit DERI holders) and a disadvantage for the traders. The team does not have a direct interest in that.

Fortunately, such an upgrade from V3 to V4 is not a regular thing. The frequency is lower than once a year.

Q: Is V4 going to leave the BSC chain?

A: Well, V4 is launched brand-new. V4 has never been launched on BSC before, so there is no such a thing as leaving.

I think you are talking about the fact that we have already deployed three iChains, which do not include BSC yet. However, the choices of iChain are completely community-driven procedures. We are only following the DIP results.

Should BSC be chosen by governance voting in the future, we would just follow the decision and support it. Should the community decide not to choose BSC, we would just support the community decision too. The key point on this matter is: the community makes the choices, we don’t.

(Ocassionaly, we might make suggestions in this procedure if necessary. For example, if there is some technical reason that does not allow us to deploy iChain on some layer1s or layer2s, we will make the corresponding reminders. But that has not happened so far.)

Q: What does it mean that rewards are stopped? Is it just that the pools are stopped, or is the trade also stopped?

A: For your first question, I think you are referring to the fact that we are going to cease the DERI reward on the V3 pools. It means, while the V3 pools will continue to exist and function as a smart contract, the LP of the V3 pools will no longer receive any DERI reward after next Tuesday.

Your second question is the same as the one below asked by @zsy , so I am addressing them together.

Please note that Deri is a decentralized protocol consisting of smart contracts, which means we cannot stop any of them from existing or functioning. So Deri V3 will continue to exist. Technically, the smart contracts will continue as long as the deployed blockchains (BSC, Arbitrum, zkSync) are live. (Currently, we run an executor service for the 2-step trading procedure, but that’s actually decentralized too as you can manually execute the second step yourself.)

That being said, we do foresee the V3 pool will probably shrink so liquidity will likely to become not as good as before. Consequently, the trading experience on the V3 pool will become worse and worse. So in practice, it’s still better off for you (LP or trader) to move to Deri V4.

Q: If the gammaswap position was opened with a specific price (different from current price), its necessary to input the same price which was used in the long and submit a short trade. Team should probably see how they can amend this part since end users expect whatever backend to handle all the nitty gritty details like this whenever they are just looking to close their position.

A: I am not sure if I completely get your question. It appears that you are saying: if the Gamma Swap position was opened with a specified entry price then you cannot close it unless you make another short trade with the same specified entry price.

As far as we know, that should not be true unless there is bug, which we have not experienced in our testing.

Please contact the team and submit your tx hash so that we can look into.
Please also keep in mind the Gamma Swap in V3 was a beta version. So abnormal scenarios should not be completely out of expectation. Gamms Swap will be reintroduced in Deri V4 with all the issues found during the beta stage getting fixed.

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

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