Deri V4: Where All Liquidity Fragments Converge for Enhanced DeFi Trading

Deri Protocol
2 min readSep 20, 2023

In the rapidly-evolving world of DeFi, capital efficiency is not just a catchphrase — it’s a vital component. Deri V4, with its innovative architecture design, pioneers this shift by effectively addressing the challenge of liquidity fragmentation.

Unified Liquidity via Deri V4 Architecture

Consider this: when liquidity providers contribute assets, no matter their preferred i-chain, those assets are pooled into one unified pool. This singular pool then serves all traders, regardless of the i-chain they opt for. Such an arrangement amplifies capital efficiency and ensures traders direct access to a deeper liquidity.

To help illustrate this, picture Alice and Bob as Liquidity Providers, with Charlie as the trader. Alice adds 1000 USDC via i-Chain1, while Bob contributes 2000 USDC via i-Chain2. With Deri V4 architecture, these amounts virtually merge to a pool with a total liquidity of 3000 USDC. This unified pool is then available for Charlie to trade against, no matter which i-chain he choosees to trade.

However, please be aware that the unified pool represents a virtual amalgamation of the liquidity from various i-Chains. Physically, the liquidity remains on the respective i-Chain where it was initially added.

In a nutshell, Deri V4 represents a vision where fragmentation is a thing of the past, and liquidity, irrespective of its origin, converges to offer users an unparalleled trading experience.

To delve deeper into the mechanics, our previous posts discuss Deri V4’s unique i-chain and d-chain architecture in detail.

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.