Deri Protocol & LayerBank AMA

Deri Protocol
4 min readJan 23, 2024

On January 23, 2024, Deri Protocol & LayerBank jointly launched an AMA. Let’s watch the detailed & complete AMA recap below:

The AMA Entrance:

Deri Protocol: Gm everyone! Welcome to the deri discord Ser!
Let’s get the ama started! Please share a quick intro on LayerBank & What inspired the creation of LayerBank?

LayerBank: Layerbank is a DeFi lending protocol for all EVM — Layer 2 roll-up chains. It also serves as an on-chain money market. Layerbank adopts VE3,3 mechanisms to increase sustainability and distributes most of the protocol’s revenue to the community. And we are currently in partnership with manta network.

We recently participated in the New Paradigm campaign, and we’ve had a close relationship with the Manta team since before Manta was even getting traction in the market, and we’ve been deploying LayerBank on Manta since before the New Paradigm campaign, so are really happy about our growth with manta.

Deri Protocol: Awesome ser! How does LayerBank’s lending protocol differ from other liquidity infrastructures?

LayerBank: Yes, to explain this layerBank have some key feature that helps us stand out among other. LayerBank has a system that distributes the revenue generated each week to LAB stakers through automatic buybacks. Considering the current market size, the revenue LayerBank generates from borrowers is more than five thousand dollars every day, and we use it to buy LAB from the market and distribute it to stakers it more like giving back to the community what they gave to us quite an interesting feature ,and this system allows us to increase the sustainability of the project. For example, when LAB is bought back, its value increases, and when TVL grows, its value increases even more. We are building this flywheel effect. In the future, to further enhance this, we will support cross-lending on each chain to improve capital efficiency. We also plan to introduce isolated lending pools on the Manta Network that list other dApps’ tokens as collateral, and we recently listed Manta tokens poll to give users additional utility also launching a large-scale airdrop program for users of these pools. More details on LayerBank’s benefits and future features will be announced soon to the community ,so stay tuned.

Deri Protocol: Thanks for the detailed answer. Speaking of security, How does LayerBank ensure the security of its users’ assets?

LayerBank: We first prevent vulnerabilities by setting a loan cap for each market and have created a dedicated risk management department within the team to monitor the market in real-time and prevent insolvency issues in advance. Also, all codes are battle-tested, working excellently not only in Manta but also in Linea, Scroll. We have always been watching on-chain attacks related to lending and use them as a lesson to improve the vulnerabilities of our project. We operate an internal bounty program for this. So you can use it with confidence.

Deri Protocol: Would like to know about the role of the LayerBank DAO, and how does it contribute to the platform’s governance?

LayerBank: Since deri is a derivative defi protocol ,we have a a role to further merge with deri to increase both community sustainability as we plan to grow together at a geometric rate , assets can be hedge on deri protocol which makes it a perfect fit for our system as we aim to apply it derivative strategy to our system to further boost emission , and also increase community cap for both protocols.

Deri Protocol: Awesome, community will like that!
What are some of the biggest challenges that LayerBank has faced so far, and how have you overcome them?

LayerBank: Our most important concern is sustainability. The Web3 industry lacks a long-term vision and tends to create short-term trends. LayerBank, from the very beginning, has a mechanism in place to share the revenue generated by the project with the community, and as part of this sharing process, we have a system that automatically buys back governance tokens, so that their value increases as the project grows. So, in order to be more sustainable and profitable in the long run, we are constantly encouraging lending and borrowing activities and transparently sharing the benefits with the community. And I’m happy to say that these efforts are working to some extent. In particular, we have an automatic buyback system that runs every Thursday, and today is the first day of it, so I’m very excited.

Deri Protocol: What advice would you give to developers who are interested in building on LayerBank’s infrastructure?

LayerBank: Since they are interested in building on layerBank infrastructure,then they have made a good decision and they are welcome are layerbank have a long-term project plan that will benefit developer and other DeFi web3 community , we have some very exciting features and update coming ,so you don’t want to miss out , so stay tuned.

Deri Protocol: Looks like there are no more questions from the community
Let’s wrap up it. Please send in any last words for the community and share your socials!

LayerBank: Ok , currently layerBank added manta poll to it protocol ,where rewards will be given to 200 top users of that ,reward will be in layerBank governance token LAbm . So deri community members can also leverage this opportunity too.

Mirror: Discord:

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.