Deri Discord AMA Recap on May 20th
On Friday, May 20th, Deri launched a Discord AMA with Deri’s co-founder, 0xAlpha. Since Deri starts the stage of Deri Community’s co-construction of the Deri Ecosystem, this AMA’s main topic wasDeri Ecosystem building from the Deri community. The AMA consisted of three parts:
Part 1: Sync Deri Protocol’s recent updates & improvements, Arbitrum mainnet launch & launch of the NEW product, Bet It
Part 2: Answer all the questions in Deri’s Discord by Deri’s Co-founder
Part 3: Answer all the questions in Deri’s TG by Deri’s Co-founder
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 sync the significant updates & improvements Deri has achieved in these days.
0xAlpha: Hello, my dear Deri fellows! Happy to attend the AMA again here on discord. Like always, let me sync the updates first.
1. Deri Ecosystem welcomes a new member: Bet It! This is created by builders from Deri Community based on Deri Protocol. The product is extremely friendly to normal traders & newers due to its rapid & simple trading process.
Please give a try here
Deri Protocol is very versatile and committed to being a key block of the DeFi world. We encourage builders in the Deri community to create their own products based on the Deri Protocol & develop the Deri Ecosystem together!
If you have interest in being a builder, visit here for more info and create a pull request on github repo. Let the Deri tech team help you to work out!
Your own brand-new ideas are more than welcome too!
2. Arbitrum mainnet is officially live on Deri Protocol now! You can start your REAL liquidity mining & derivatives trading on Arbitrum network now! Especially for those Arbi members interested in trading who participated in the testnet trading competition before, I have to inform you that your REAL chances come!
Go long and short $BTC & $ETH Perpetual Futures, Everlasting Options and Power Perpetuals with up to 25x leverage on Arbitrum mainnet. Start trade here! Click here to find the step-by-step guides of mining & trading on Arbitrum.
3. Data shows the healthy & stable profitability of liquidity mining on Deri. Despite recent market fluctuations, Deri LPs are making profits steadily during such furious markets.
This is your current net value if you deposited 1 BUSD in the option pool at its launch (Jan 8th). That’s 4% return in 4 months. (DERI token rewards are not included.)
The closed-out Future-Main pool worked well too in terms of making profits for LPs.
The Inno pool is currently under water, due to the black swan event of Luna. (Bigger risks are expected for this pool at the beginning tho). We are working on how to better manage the risks of smaller-cap tokens. Will make this pool as profitable as the Main.
You are welcome to visit this thread on my personal twitter to further discuss this. Our ultimate goal is that, in the long term, Deri’s LPs are earning stable passive income even without DERI & XVS token rewards.
4. In the liquidity mining section, we have combined “ Future Main” Pool and “ Options” Pool into one pool “Main ‘’ to improve capital efficiency on BNBChain.
Note: If you have not migrated your staked tokens from the retired “Future Main‘ pool to other pools, please take the time to migrate. The retired pool has stopped earning DERI rewards for you. Please move to other pools to let them continue generating DERI rewards. The Arbitrum pool is strongly recommanded. (The earned DERI Rewards in the retired pool before will be kept for you, and you can claim them. )
Follow the migration guide
5. New listing: AVAXUSDT Perpetual Futures is live for trading on Deri Protocol now. You can go long or short on AVAX with up to 10x leverage.
Host: Excellent! Now let’s move to the second part, 0xAlpha, please answer all the questions in Discord.
Q1: Will you have traders’ PnL info at the stats page? It’s important data for LPs
A1: If what you are interested is LP’s PnL, it’s already in the info site (https://info.deri.io/#/info). The screenshots I made above are all from this site. If what you want is the break-down of LP’s PnL (which include the negative of trader’s PnL and more), then we would need to evaluate the request and see if we are to put this into our pipeline.
Q2: I’m newbie here, any burning mechanism?
Q3: Is Bet It secure for traders? Is the smart contract audited by the third party? Is the Deri core team endorsing the project?
A3: Well, “Bet It” is a community-developed project. We reviewed the smart contract internally but it’s not audited by third-party auditors. As for the endorsement, we the team endorse the project as a community-developed project. But this does not mean we endorse it like our own project.
That being said, please note that “Bet it” is not a completely independent project. It’s simply a wrapper of Deri Protocol. Hence the additional part of smart contract is pretty simple and straightforward. So it’s safety should be as same as Deri Protocol itself. Plus “Bet it” only takes your collateral while you have a position and will return your collateral to your wallet right upon closing. In that sense, you don’t need to worry too much about it’s safety.
Q4: What’s your roadmap of the next 6 months?
A4: I would like to point you to this Messari article, which covers most of the aspects of Deri, including the road map that you are asking.
Q5: What’s Deri Ecosystem?
A5: In terms for ecosystem, Deri Protocol is a protocol. It means we will have a lot of Dapps built on top of it. the website deri.io is the first one. “Bet it” maybe the second. And there will more and more.
Q6: Any plan to boost the trades on Deri?
A6: The operation team has been focused on boosting trading volume on Deri all the time. It’s difficult to go through all of their works here in a short AMA. but almost everything you have seen has an impact on the trading volume. “Bet It” is one of the examples.
Q7: This project is good, I just have one concern. The team regularly buy DERI tokens from the market and recycled it to mining vault. It doesn’t make any sense.Why not burn it?! I think it will be good to token price and investors will be more confident.
A7: We are burning them! Take a look at this smart contracts
I explained this many times before. Deri’s burning is just like the EIP1559 burning mechanism of ETH. “Recycle” is a misleading word. When DERI tokens are burned into the mining vault, it only means the liquidity mining could last longer than if they are burned into address 0 or a “burning smart contract”. In other words, it only affect whether the liquidity mining could continue or not after 10 years.
In terms of taking DERI tokens out of circulation and supporting the token price, it’s the same. Actually you can observe this from the market — burning does support the token price! Every time the burning function is called, it pushes the price up!
Q8: Hey lord, when will we have a new type of derivative, Stablecoin Depeg Swap, based on Everlasting Options, which was mentioned in your tweet?
A8: Yes that’s something we are working on. But unfortunately I cannot give you a timeline for this one yet.
While the design of Stablecoin Depeg Swap as a derivative is pretty much done, there is quite something to do if we are to support this on Deri Protocol. For example, how to design the AMM to support this derivative. We are working on resolving these issues. I posted the tweet to invoke discussions on the derivative also in order to collect advice on these issues.
So, any thoughts you have with the Stablecoin Depeg Swap, please share with me. You can also RT the tweet to help to invoke broader discussions.
Q9: What efforts are currently being done in order to on-board new traders to Deri? Any T1 exchange listings in sight? I think this would help all parties, holders and thru that Deri would gain more exposure.
A9: The operation team has been all focused on on-boarding new traders. For example, “Bet it”, and other community-developed projects, are one way of on-boarding new traders. As for exchange listing, we are working on that but I cannot disclose the procedure due to NDA.
Q10: So in general, it is essential to comprehend that liquidity providers are the counterparts of traders on Deri Protocol. When traders realize profits, they do so at the expense of liquidity provider’s provided liquidity. When traders realize losses or are liquidated, liquidity providers realize profits at the expense of traders. “ — Sure not imperment loss, but the risk of traders profiting. The question is are traders profitable or not on the platform？Like on GMX we can see how much traders make or lose
A10: I am not sure if this is suggesting we display the trader’s total PnL on our info site? I will discuss that internally. But meanwhile would share the motivation for this? If this is to see the LP’s PnL, you have that info on info.deri.io already. See my screenshots previously posted, or this tweet
Q11: I also think it would be very helpful to the community if there is a “lite” version for options trading, similar to how Huobi’s option’s trading platform is structured for lite users.
A11: Actually there were a “lite” version of trading interface but remove in the current version of website. I still think the lite version is a good idea.
While the official dapp deri.io will probably stay the current way. I think the lite version is something very good to be implemented as a community app. I will push on this. Meanwhile, any developers from the community would like to contribute to this, please contact us.
Q12: Hi, would it be possible for the greeks of the powers be displayed like it is with the options? Also showing the total delta of the positions would make it easier to quickly check risk.
A12: These are very good suggestions. I will discuss with the product lead regarding how to put such info in our trading interface and LP interface.
Q13: Where do powers prices derived from?
A13: The power prices are, by definition, derived from the underlyer’s price. For example, the BTC² price is derived from BTC price. For details, you need to go to our document. If your question is about where the derivation is calculated? it’s calculated in the smart contracts.
Host: Now, let’s move to the questions from Deri’s TG groups and leave 0xAlpha to answer them.
Q14: You should extend to 10+ chains just in order to survive. It is a brutal competition out there. From what I’ve observed, you are not working hard enough. I’m not trying to offend anyone, just an opinion.
A14: First of all, I am glad you are making this comment/criticism. I know in some of the communities (for example, in China), “the team is working” is a very sarcastic saying. You are criticizing the team is not working hard enough, that’s good.
However, I want to defend the team against your criticism. The whole team is working extremely hard. Can you name one other DeFi project iterating as fast as Deri Protocol? Please just pick one!
If you cannot find one such project, that tells how fast the project is iterating and how hard the team is working. So, I do not agree with your opinion that we are not working hard enough.
Back to your first question, we are evaluating all the possible blockchain networks that Deri could be deployed, Near, Avalanche, Moonbeam, etc. We definitely want Deri protocol to be everywhere if possible. However, there are some constraints indeed. Deploying Deri is not like deploying Sushiswap, which is currently deployed on 10+ networks. Sushiswap is pretty self-contained, while Deri is much more complicated. For Deri to be deployed on some network, there must be a good oracle (e.g. ChainLink), a good swapper (e.g. Pancake or Uniswap), and a good lending protocol (e.g. Venus or AAVE). In short, Deri is a very sophisticated machine that needs specific working environments. We are expanding but it takes time.
Q15: My question for CEO: What is our marketing strategy in next period? Defi 2.0 is coming back in silence and what makes Deri different to others?
A15: Deri is unique and different from others. Deri is the only derivative protocol supporting futures, options, and powers, all at the same time. Everlasting options is one thing that you cannot find anywhere else.
Q16: I think it would help the protocol if articles could be written to educate the community where and how everlasting options fit in their portfolios.
Whether its a source of additional alpha or as a small expense to hedge the entirety of their portfolio, knowledge is important in order for the community to appreciate how valuable everlasting options truly are.
A16: Great suggestions. we have already done something in that part but apparently we have not done enough. we will add more such educating documents. Also we will find a way for the community to participate in this too.
Q17: What kind of products can I build based on Deri Protocol? Limit in trading-like products? If the answer is yes, won’t the whole Deri Ecosystem be too single and the projects are repeated? In my opinion, diversification in ecosystem will create more use cases for DERI tokens.
A17: Well, Deri Protocol is for derivatives, so the projects built on top of it are of course trading-related. However, that’s not limited at all. Think about it: at lease half of the activities in finance are trading-related. That’s a tremendous space for you to exercise your talent! Here are some ideas for you to start with. But these are only triggers to inspire more innovative products to be built on top of Deri.
Q18: Did any private sale take place previously? If yes, what was the price?
A18: There were only private sales to the institutional investors (e.g. the VCs listed on the website). These deals were all negotiated based on the secondary market price as of then.
0xAlpha: It’s very obvious that we are through a very difficult time. Not just Deri, but the whole DeFi sector (especially the DeFi derivative projects) are going through its hardest time. But this is also the time to build, make our product better, construct a better-organized community, and prepare for the bull market time!
There will always be upturns and downturns. The important thing is that we keep our faith during the downturns. The more important thing is that we keep building during the downturns! Together WAGMI!
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.