Over the past weeks, we have been pleased to notice a sharp increase regarding the daily trading volume, currently sitting at around $200 million recently with a 24H all-time-high (ATH) of $826M. As the trading volume increases steadily, the “protocol fee” continues to grow.
On Binance Smart Chain, there are BUSD-based and DERI-based trading pools, in which BUSD and DERI are defined as the Base0 tokens, respectively. For these pools, the “protocol fees” are collected in BUSD and DERI, respectively. As of 10:00 AM, November 16th, 2021, more than 100k BUSD and 380k DERI have been collected. We are thrilled to announce that the DERI buy-&-burn program will be implemented soon.
The buy-&-burn program will be carried out differently for these two types of collected protocol fees.
For the collected BUSD
The buy-&-burn program will be carried in 2 steps: 1. Collect BUSD into the DAO fund, and 2. Buy DERI tokens from the secondary market and burn them.
1. Collect BUSD into the DAO fund
Anybody can call the “collectProtocolFee” function to collect the accrued BUSD to the DAO fund.
For BUSD-based pools, calling the function “collectProtocolFee” will transfer the accrued protocol fees (BUSD) to the DAO fund smart contract (0xeBCbC6B9B782F3DFD61FFf70b2aAA0aE8D8b2a8D). Per the code of the smart contract, BUSD collected into the DAO fund has only one destination — buy DERI tokens from secondary market and burn them, i.e. send them to the mining vault (x6C8d3F31b2ad1AE997Afa20EAd88cb67E93C6E17).
2. Buy DERI from the secondary market and burn them:
Taking into account all key factors and events, the DAO fund’s “buyAndBurnDeri” function will be triggered by the operation team, whenever the team deems the time is appropriate. The function will automatically buy DERI on the secondary market and send DERI tokens to the mining vault (x6C8d3F31b2ad1AE997Afa20EAd88cb67E93C6E17).
Please note that we will announce the buy-&-burn action afterward, to avoid any front-run or exploitation of the buy-&-burn actions.
For the collected DERI
There will be no buying procedure, the DERI tokens will be burned directly. The procedure is very straightforward, calling the function “collectProtocolFee” will send the accrued protocol fees (DERI) directly to the mining vault. Anybody who wants to experience the fun of “burning DERI” can go ahead and call this function yourself.
About Deri Protocol
Deri Protocol = (Perpetual Futures + Everlasting Options) x Decentralized.
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.