Deri AMA Recap on November 3rd, 2023

Deri Protocol
6 min readNov 3, 2023

On November 3rd, Deri launched a Deri V4 AMA. Let’s watch the detailed & complete AMA recap below:

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

OxAlpha:

Hello everyone! Again, let’s start with briefing you all with the updates.

1.First, the most noteworthy event is the launch of Deri V4 testnet, which went live yesterday. The community is welcome to actively try it out at: https://testnet.deri.io/. Any questions or suggestions during the experience can be submitted to the “deri-v4-testnet” channel, and the team will address & improve them.

Deri V3 was a game-changer, but Deri V4 is a quantum leap! Our vision for Deri V4 is nothing short of revolutionary: an all-chain, decentralized derivative trading protocol, designed to elevate inclusivity, capital efficiency, and user experience in the DeFi derivatives market.

Find out more about V4 testnet: https://deri-protocol.medium.com/introducing-deri-v4-public-testnet-49ffefdf779c

Oh another thing, the third i-chain nomination began. Nominate here: https://docs.google.com/forms/d/e/1FAIpQLSeRqNSM52XkEm-ooNQdlxOSwpcA6plrQcRb5ppCMxVQjBPIRQ/viewform?pli=1

Thank you all for your support!

Second thing, also about V4: Deri V4 smart contracts have been audited by Peckshield. Please check here for the full report. https://github.com/peckshield/publications/blob/master/audit_reports/PeckShield-Audit-Report-DeriV4-1.0.pdf

Also, Deri V4 smart contract is now open-sourced. Explore Deri V4 smart contract on GitHub:https://github.com/deri-protocol/deriprotocol-v4

For those who are good smart contracts, you can also do your own auditing. Deri Protocol launches the Deri V4 bug bounty with immunefi: https://immunefi.com/bounty/deriprotocol/

Go ahead to find bugs and get bonus up to $10,000!

OK, so that’s the part for Deri V4.

2. During the past several weeks, we had some new listings on Deri V3:

BTCUSD-36000-C/P
BTCUSD-34000-C/P
BTCUSD-24000-C/P
ETHUSD-1400-C/P

3. Also we introduced a new features on our website — historic funding fee data, which will be retained in V4.

Here are two examples of funding fee displaying, one for futures and the other for option.

All right, so that’s it for the updates.
Now let’s proceed to the questions!

Q: Any plan to use Arb airdrop fund for Deri? We can do maketing, make a true parnership to PR or just add to Deri LP pool!

A: The airdropped ARB is part of the Deri Treasury, which will be used to support the growth of Deri protocol. The usage has not been decided yet. But you made some good suggestions. I think the foundation will take them into consideration.

Q: Who will be the target partner for Deri V4.0? Good Product needs to be used in more dapps or platforms.

A: During the building of Deri V4, there were quite a few partners, such as Orbit (the Arbitrum team), Altlayer, Celestia, etc. Also, quite a lot of layer1s/layer2s are interested in Deri V4 being deployed on them, which are all potential partners.

Q: There are currently few trading symbols on the V4 testnet, only BTC and ETH. Just like that Binance now directly launches futures on some popular tokens, when V4 is officially launched, have you considered adding more symbols of popular tokens?

A: That’s a good questions. I think by “symbol” you really mean other underlyers for the derivative trading, such as SOL, DOGE, LINK, etc.

The reason that the tokens other than BTC and ETH are not on the top of the priority is that we are not sure about the demands on them. Our statistics of V3 show the trading has not been very active on the Inno Pool, which mainly targets “popular tokens”. So for the first stage of V4, we will focus more on the primary demands demonstrated on Deri V3–the top cryptocurrencies such as BTC/ETH/BNB.

Nevertheless, we do want to facilitate people to trade whatever they want. So we will definitely roll out a solution to support the trading of “popular tokens” other than BTC and ETH.

At the end of the day, we will roll out a permissionless solution for people to launch derivatives of whatever underliers they want. That’s the ultimate goal of Deri.

Q: After using testnet, from a practical using level, the most intuitive feeling is that there is not much difference between V3 and V4. In addition, there are some functions on V3 that are not available on V4, such as stop-profit and stop-loss.

A: V4 is not about changing the UX/UI of how you trade. It’s about an internal change of the architecture to optimize your trading experience: liquidity, slippage, speed, gas, number of symbols supported, flexibility of choosing blockchain, etc. So function-wise, it’s true that there is not much difference between V3 and V4. But once the V4 mainnet goes online, I am sure you will feel the difference of the trading experiences.

As for Stop-Profit and Stop-Loss, they will be added very soon.

Q: After that the V4 mainnet goes online, will strikes become more intensive? For example, will BTC be in intervals of 500? e.g, 34500

A: Well, the strikes will definitely be provided more intensively–that’s one of the core optimizations of V4, which is also part of the better trading experience I mentioned in the previous answer. However, I am not sure if it is practically feasible to provide intervals of 500. Neither am I sure it is necessary to do so. I think 1000 might be a better balance?

Suggestion: When V4 goes online, can we launch several existing chains together? Isn’t it possible to pool liquidity? It’s really troublesome to change them. Some of the trading symbols are no longer available after the chain is changed, which will use up old users.

A: That’s a great idea, which is also our plan. For those iChains that have already been elected before the official launch, V4 will be launched on them together. So far the community has chosen Arbitrum and zkSynce from DIP6 and DIP7. We might have a couple of more chains elected out in the future.

Suggestion: There is no guarantee that the execution will be successful. This stop-profit and stop-loss function is meaningless, because when I use this function, it means that it is time to operate.

The functions of stop-profit and stop-loss are used when the fluctuations are severe, and then the execution will fail. . Is it up to the team to think of a solution?

I would like to suggest that you can directly set up a warning when the execution of stop-profit and stop-loss fails, and remind us by phone, so that we can use it with confidence.

A: Aa far as I know, no exchange (including CEX and DeFi) can guarantee the execution of take-profit or stop-loss orders. You can go ahead check out the detailed rules of any exchange, you will find that limit orders are guaranteed but take-profit or stop-loss orders are not.

It’s similar there for the TP ro SL orders on Deri.

However, in reality we do want to make the probability of execution as close to 100% as possible. So if you have came across any failed TP/SL orders, please share with us so that we can fix the problems and optimize the robustness.

Suggestion: The technology has been accumulated for almost two years. To put it bluntly, crypto derivatives are still relatively marginal! Can we also add some traditional derivatives? This will also attract some users. Or DERI can consider listing on some small exchanges.

A: By traditional derivatives, I guess you were referring to derivatives of traditional underliers (such as stocks, commodities, etc). That is something we have been thinking of. There is no technology obstacle for doing this. But there are many other concerns. However, we will definitely consider it.

OxAlpha:

Again, don’t forget to try out Deri V4 at https://testnet.deri.io/

Whatever nice or bad experience you have there, please let us know. Thank you all for your support!

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.