On Friday, June 10th, Deri launched a Discord AMA with Deri’s co-founder, 0xAlpha. This AMA was especially valuable to Deri community because it included all issues of top concerns to the community in such a bear market.The AMA consisted of three parts:
Part 1: Report Deri Protocol’s recent updates & improvements
Part 2: Answer all the accumulated questions in Deri’s Discord by Deri’s Co-founder, 0xAlpha
Part 3: Answer all the accumulated questions from Deri’s TG by Deri’s Co-founder, 0xAlpha
The AMA Entrance: https://discord.gg/dQyuBkBKBe
Let’s watch the detailed & complete AMA recap below:
Host: Good Morning/Evening, everyone! Thank you for joining us today. Let’s get started! 0xAlpha , please go first part: Sync the significant updates & improvements Deri has achieved in these days.
OxAlpha: Good Morning from Austin, where consensus happens!
Austin is a hot city. But definitely a lot of amazing thing are taking place here. Meeting with a lot of friends doing crypto from all over the world. I will share more about my Austin trip on my twitter channel.
Cool, I am starting with syncing the updates.
1. As we all know, the most remarkable event these days is the change of DERI burning mechanism, which is 100% decided by the DERI community through the community-driven vote. The final result is : Burn DERI to deadlock address.
All products based on Deri Protocol smart contracts will be included in it. Click to check how many products we have had already. More developers from the community are encouraged to build & expand Deri Ecosystem.
3. Bet It has launched mobile UI, you can do fast trading anywhere & anytime now
4. Multi- languages updates: deri.io has Spanish now
5. To cultivate & train newbies, 4 NEW learning docs about derivatives trading are in “Deri Academy”
Host: Excellent! Now let’s move to the second part, 0xAlpha, please answer all the questions in Discord
Q1: Suppose this bear market will last until the next bitcoin halving May 2024, does DERI team have enough funds? What plans do you have to survive in this environment? How to keep faith during the downturns?
A1: Thank you for caring for us! The answer is yes, we are well funded to make all the way to 2024.
But this concern you raised makes me want to talk about another thing. I would like to point out that we are making sure Deri Protocol will function well even without the team’s support. So, you don’t even need to worry about whether the team has enough funds all the way to 2024.
To use Deri’s functions, there are two parts involved: the protocol (i.e. the smart contracts) level and the front-end (the website interface, e.g. deri.io). The former is running on blockchain networks so it’s independent of the Deri team from Day 1 when deployed. For the latter, deri.io is the official website run by the team, however, we now have the community-built front-end too (https://deri.fi/#/derilite). With the community-built front-end, we have made the whole functions of Deri Protocol independent of the project team.
In short, any dependency of the project team is against the decentralization concept of DeFi and thus should be removed. And we are getting there.“adjust the mode to attract more potential users first” — that’s what we have been doing. check out
deri.fi, which contains different new products built on top of Deri Protocol by our community developers. As far as I know, a bunch of different external developers are building things on Deri. You will see a lot of very diversified products soon. These are all targeting different types of users and ultimately increasing the user base.
We will keep building the products and incubate an active developer community to build the products together so that our community can enjoy better and more diversified products. You can already see the things rolled out through our community dapps website (deri.fi). And you will see more. One thing good about derivatives is that you still need them in bear market times. And that’s what we are here for.
Q2: The market is not optimistic this year, and exchanges must not sit still.In such a sluggish investment environment, will DERI have a plan B? For example, adjust the mode to attract more potential users first? Even if they don’t trade first, can you attract a wave of potential users to come and cultivate them first? Is there any plan to increase the number of community users first? I see no growth for a long time.
A2: “adjust the mode to attract more potential users first” — that’s what we have been doing. check out deri.fi , which contains different new products built on top of Deri Protocol by our community developers. As far as I know, a bunch of different external developers are building things on Deri. You will see a lot of very diversified products soon. These are all targeting different types of users and ultimately increasing the user base.
Q3: Will there be any measure to stimulate DERI price except the change of burning mechanism? If there is no, do you decide to let DERI price keep like this in long-term? If there is no method to change it, in such bear market, few people will trade, then DERI Price will be hard to climb. The condition will last for long time.
A3: As a team, the only thing we do is to optimize and promote the product (including optimizing the tokenomices). Regarding “do you decide to let DERI price keep like this in long-term?”, I want to emphasize (again) that we the team DO NOT decide the price.
Q4: Deri Protocol’s new burning mechanism has been officially confirmed, the burned DERI will enter the permanent lock-up address, the value mechanism of DERI capture protocol is activated, and the remaining proposition is to increase transaction volume.
Personally, I understand that the main force of the current derivatives trading is from big traders and institutions, which means that the expansion of cooperative resources and brand PR are more important than product experience.
Currently, Which projects are talking about cooperation?
A4: While we are talking with a number of corporations, which you will see soon, I don’t agree with the statement “the main force of the current derivatives trading is from big traders and institutions”. I admit that the current UX/UI design of deri.io is a bit more towards the pro users (big traders and institutions in your term). But that’s not the only product form of derivatives. There are a lot of other forms that are friendly for “small traders”. For example, Bet It (https://deri.fi/#/betit) is extremely friendly for dummies. And there will be a lot of products built on top Deri that are tailored for all kinds of users with all kinds of purposes. Please stay tuned for the updates in our community website deri.fi.
Q5: What’s Deri Ecosystem and also please can you tell me how “Bet it” works for traders?
A5: Deri Ecosystem means all the Dapps built on top of Deri Protocol. you can see some of them from the community website deri.fi. More are coming on the way.
As for “Bet It”, it is developed by a community developer. According to our communication with him (or her, I don’t know), it’s supposed to be self-explanatory. Did you go to the “Bet It” website and found not so intuitive for what to do? If yes, please share your confusion. I think he (or she) will see it. We will forward your confusion too.
Q6: What’s your roadmap of the next 6 months of the year and any plan to boost the trades on Deri?
A6: Please refer to this one organized by Messari.
As for boosting the trades, among all the efforts, one thing we are doing is to diversify the forms of the end-product (on top of Deri Protocol) so that all types of users can use Deri (through different dapps).
Host: Thanks for answering all (live) questions from discord! Now, let’s move to the questions from Deri’s TG groups and leave 0xAlpha to answer them.
Q7: Volume totally dried both in BSC and Arbitrum. Team should be looking for new angles. Has team considered on contacting Biswap and offering some kinds of collaboration? They have the spot and the audiences, Deri has the perps, like same kind of partnership that Pancakeswap and ApolloX formed. Things do not look good.
A7: We are talking with a few potential partners. Meanwhile, if you feel some project is worth cooperating with, you can either suggest it to us or go to call for cooperation in their community. Or you can do both! This is something you could participate rather than just providing advice to.
So if you think “Things do not look good”, please don’t sit there and do nothing. Let’s all take some actions to make things good together! If you think Biswap is worth cooperating with, go to their community and call for it! That would help more to make such cooperation happen.
Q8: With Web 3.0, what should Deri take a part? Binance has a $500 million investment in Web 3.0, Deri should fight for it.
A8: We are building THE derivatives for Web 3.0. Derivatives is the infrastructure of the web 3 world and the only type of derivatives that can be used in Web 3 is the DeFi ones, which is Deri Protocol!
Q9: Is there any plan to reduce the initial margin for options ? ETH-3000C’s mark price was 0.3 but I needed to pay 9 USDT. All option platforms use initial margin for selling options, not for buyers.
I believe you saw the message regarding the initial margin of the OTM options. It doesn’t make any sense for a buyer to pay about 150 USD just for a BTC -10000C which worth only 0.00007 (which the maximum lost is only 0.00007). 150 USD is more than enough to pay funding fee for more than 1000 years.I don’t think any trader would buy it.
A9: I see your point. But first let explain a bit in details.
Everlasting options are a bit different from the classical options in terms of how they are traded. When you long a classical option, you pay the “full price” up-front then of course you don’t need to deposit any margin. However, the concept of “full price” does not exist for everlasting options. Please note Mark Price is not the same as the “full price” of classical options. Mark Price is used to calculate your PnL, which is the difference between the mark price at your entry point and your closing point. And it’s the potential change of the mark price that determines the margin. An everlasting option with mark price = 0.3 can possibly change by 9$ in some scenarios, that’s why you are asked to deposit 9 USDT as margin. (Please note that margin is only held for collateral — you don’t really PAY the 9 USDT out).
That being said, you do have a point that the parameters might be too conservative. The margin parameters were set to be conservative when we started with it. And now everlasting options have been running smoothly for several months, we can revisit the parameters and see if some of them can be adjusted. We will take a deep look into this and get back on you.
Let me add a bit more regarding our conservativeness here.
I think the Deri team deserves some appreciation on this, rather than complaining. Complaining about us being conservative is totally unfair.
When you are doing something completely innovative, which means you have nobody to learn from, you have to be cautious. Because you don’t know what’s gonna happen. Since most of the aggressive DeFi projects have already been dead, one of the reasons that Deri Protocol is still alive is that we are conservative while we are innovative.
But the self-defense above is not indicating we are not gonna adjusting the parameters. We will review them and make change if necessary.
1- What should be the next chain to join to Deri?
2- Any new big partner in near future ? Who can bring more traders to Deri?
3- Kindly let deri.io have more nice/warm ui/ux (as deri.fi — orange).
4- Kindly update the roadmap of 2022. It is a half of 2022, any news in the 6 months from now till 2023 with our Deri roadmap
1- we would like to listen to the community regarding this matter. The last network that Deri was deployed, Arbitrum, was chosen by the community. I think the community also suggested Near and Avalanche and a few others. These are all possibilities.
2- we are talking with several partners. Partners will be formed in different ways. In most of these partnerships, Deri Protocol will be used as part of the end-products (Dapps), which will lead to trading on Deri Protocol as part of their activities.
3- If you like the warm style of deri.fi, why don’t you just use it? why do we have to make everything like that? What if somebody likes the current dark style of deri.io (you must recognize that people have different preference so not everyone likes what you like.)
Nevertheless, I will forward your suggestion to the UI designer of deri.io. But personally I think it makes sense to keep the websites diversified, doesn’t it?
4- We are delivering what we promised in our roadmap of 2022. For the rest of the year, we will review the roadmap and see if an update is needed. If there is any update, the whole community will be kept posted.
Q11: Deri’s current disadvantage is its popularity. Deri needs to be well known and cooperate with professional well-known brands. It should first attract professional traders, establish a professional derivatives trading platform as a personality, and then promote novice customers to increase the trading volume.
Derived from this suggestion:
For example, If Deri wants to cooperate with deribit in marketing. What can Deri do to entice deribit to cooperate? Also, compared to deribit, What advantages Deri have to attract professional traders?
The core issue is : How to overtake in a corner to increase the trading volume？
A11: I totally agree with that “Deri’s current disadvantage is its popularity”. We have done an excellent job building nice product but have not done a great job promoting its popularity. That’s why for the past several months, the priority of our job has moved more towards this dimension.
When it comes to the options and the comparison with Deribit, we offer different things than Deribit’s. For example, we offer Everlasting Options, vs the classical options by Deribit. But it takes some time for the everlasting options to gain its popularity among options traders.
Q12: In the Deri Ecosystem Portal, I see “liquidity mining” & “deri.lite”. What are they? Is the ‘liquidity mining” the simplified version of “Pools” feature on deri.io or it will provide more mining choices? Give us a foreshow.
A12: These are all community-built dapps. “deri.lite” is online already, so you can check it out yourself. As for “liquiidty mining”, according to our conversation with the developer(s), it’s an easy interface for LPs to provide liquidity to pairs like ETH-USDC or BNB-BUSD on Uniswap/Sushiswap or Pancake and hedge them with the power perps on Deri so that LPs can do such liquidity mining without impermanent loss.
Q13: Since the new burning mechanism is live now, will the Deri tokens all burn up? How exactly is the new burning mechanism better than the previous one?
A13: The answer is I personally don’t think the new burning mechanism is better than the old one. I explained that in this tweet thread. (https://twitter.com/0x_Alpha/status/1529837268814516226)
The burning mechanism has been switched to the new one because it’s the community’s choice.
As for whether the Deri tokens will be all burned up? I don’t think so. But I suggest the community revote on this issue when the DERI tokens decreased to some extent.
Q14: I see that you support the new language Spanish. So what do you think about other market like India or Indonesia ? And will you support these languages?
A14: We would like to support as many market areas and communities as possible. Whatever languages you think we should support, please let us know.
Q15: I managed to turn 2000 USD into 9000 USD in just trading everlasting options. At the end of the day, the capital outlay to secure your position (initial margin %) determines how many contracts you can buy.
The timing of your entries and exits of positions (and how you structure the your positions i.e. long/short your calls and puts) is the most important thing for everlasting options since profits are only locked in if the position is closed.
Alternatively, one could earn rather obscene amounts from the daily funding rate alone if you know what you are doing.
It would be nice to have limit order function for the options. Currently I need to camp at my desktop and wait for price action to hit my target entry/exit points, which is not very convenient.
Nevertheless I think the Deri team is onto something special with everlasting options because in some sense it behaves like perpetuals (futures) but with much lower risk of liquidation and high profit potential.
A15: We have put the limit order function as a TODO in our “ideas to build” list calling the community developers to help build. However, if no community developer wants to take this one, the team will do it. It’s just that the team is being overpacked by our pipeline at the moment.
Host: That’s all the questions for today’s AMA! Thank you for your participation! And 0xAlpha — thank you for your indulgence on one or two live questions.
0xAlpha: Cool. It’s feeling great chatting with the community fellows.Guess that’s it for today. then I am heading to the Consensus conf place right now. Will share with you guys what I see here. Bye now~
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.