Deri Protocol has already established itself as a multi-chain derivative trading platform on networks like Arbitrum, BNBChain, and zkSync Era. However, the challenge has been that these deployments are isolated. This isolation means that capital isn’t used as efficiently as it could be, because:
- The liquidity pools on different networks are isolated so we end up with many fragmented and relatively small liquidity pools.
- Any trader is trading against the relatively small liquidity pool on the network from which the trade is initialized.
Enter Deri V4 — the next step in cross-chain decentralized derivative trading. With Deri V4, the liquidity on different networks are unified into one liquidity pool. Thus users can seamlessly trade against the liquidity distributed across different blockchains. Imagine trading from your favorite blockchain network and enjoying the much better liquidity consolidated across many networks. That’s the power of Deri V4.
What makes Deri V4 stand out? It’s all in its innovative architecture,which consists of two main components: a requesting interface and an executive engine, implemented as two groups of smart contracts.
The requesting interface,also known as the “i-chain” (with “i” signifying interface), serves as the pivotal entry point for user interactions. It adeptly handles a wide range of user requests, from traders initiating orders and managing margins to liquidity providers engaging in adding or removing liquidity.
These requests are seamlessly relayed to the executive engine. Deployed on a dedicated blockchain, this is our “d-chain”, where “d” represents “Deri”. Here, all the requests are processed.
There is only one d-Chain, which is an AppChain deployed by the Deri Protocol team using layer 3 technology. Whereas, i-Chain are all the major public layer 1s and layer 2s such as Ethereum, Arbitrum, BNBChain, zkEVM,and zkSync Era. While theoretically any layer 1 or layer 2 can be adopted as an i-Chain, in practice, the community will choose which ones to deploy.
Through the implementation of this architecture, Deri V4 addresses the pervasive challenge of liquidity fragmentation, which is prevalent in numerous DeFi protocols. With Deri V4, the future of decentralized trading across multiple blockchains looks not only possible but also efficient and user-friendly.
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.