Recap of Deri & BSC AMA on January 19th
On Wednesday, January 19th, we had a AMA with BSC in BSC’s community. The following shows a recap of the questions with 0xAlpha’s answers.
BSC Community: https://t.me/BinanceDEXchange
Q1: Could you please introduce yourself to the community？
A1: I’m 0xAlpha, Co-founder and CEO of Deri Protocol. Deri Protocol is the leading derivative trading protocol on Binance Smart Chain.
Quoting the formula of our website:
Deri Protocol = (Perpetual Futures + Everlasting Options) X Decentralized.
Deri Protocol is the DeFi way to trade derivatives: to hedge, to speculate, to arbitrage, all on-chain.
To provide higher capital efficiency, Deri Protocol V3 was launched last week.You can find out more details on our website: https://deri.finance/
Q2: There is much talk about DeFi 2.0, and a big part of it is the capital efficiency. As you said, Deri V3 provides higher capital efficiency, could you describe in which aspects the capital efficiency reflects actually on Deri V3?
A2: One of the key features of Deri V3 is “external custody”. This is gonna be a new trend that defines DeFi 2.0. In particular, we chose Venus to be the partnering protocol of our external custody on BSC, meaning the capital involved in Deri’s trading business is actually stored in Venus.
In general, any token accepted by Venus as collateral would automatically become a supported base token of Deri V3. Traders can trade with 10+ non-cash assets as collateral, while LPs can provide 10+ non-cash assets as liquidity contributions. This supports Deri’s multi-base-token mechanism with substantially higher scalability and capital efficiency.
Q3: Understood, regarding the specific partnership between Venus and Deri, could you elaborate i.e. provide more information, what is the actual meaning for BSC?
A3: In the DeFi world, when it comes to dealing with liquidity, there are 2 roles: liquidity users and liquidity managers. From that perspective, Deri Protocol is a liquidity user. So the essence of this partnership is that Deri Protocol has Venus to manage the liquidity on its behalf.
No other words, this partnership is all about the division of jobs: leaving the role of liquidity managing to someone specializing in this job. We believe this is how liquidity will be dealt with in the future of DeFi: Projects like Venus manage liquidity, while projects like Deri use liquidity. So we are both working on what we are specialized in, respectively.
And we believe that is a defining feature of DeFi 2.0 and will also be the trend for future DeFi projects. The Venus-Deri partnership is going to be a proof-of-case and role model for the other projects on BSC to follow this approach. So this is gonna be a milestone for the BSC ecosystem too!
Q4: On the other hand, what is the significance for the Deri community?
A4: From Deri’s perspective, this partnership benefits both the liquidity providers and the traders.For liquidity providers, now when you provide liquidity to Deri Protocol, you have a large range of tokens for you to deposit, i.e. the 10+ accepted tokens. Here I welcome all these token holders to LP on Deri! Additionally, the LPs will receive both DERI Mining Rewards and XVS mining rewards, and lending interest (yield) on XVS, so triple rewards in total!
Here is the step-by-step guide for liquidity: https://docs.deri.finance/mining/amm-liquidity-mining
For derivative traders, all tokens accepted by Venus can be used as margins for trading. For example, as a CAKE holder, he can deposit CAKE as margins to trade BTCUSD, ETH perpetual futures & everlasting options on Deri. Additionally, traders will also receive XVS rewards, and the lending interest yield on XVS as extra rewards for depositing those funds in margin.
Here I welcome all above token holders to trade derivatives on Deri! Check out how to trade on Deri Protocol Here: https://docs.deri.finance/trading/deposit-margin
Q5: We noted that another defining feature of V3 is the uniform DPMM for all funding-fee-based perpetual derivatives. Please kindly provide more information about it.
A5: The DPMM of Deri V3 has unified the funding and pricing mechanisms for all funding-fee-based perpetual derivatives. That is, the DPMM of Deri V3 is designed to universally handle all funding-fee-based perpetual derivatives including perpetual futures and everlasting options. In a nutshell, the DPMM has an additional benefit on capital efficiency.
In practice, this means several things:
1. It is pretty effortless for Deri to add support for more derivative types without too much hassle. For example, we will soon support power perps. Stay tuned! (you can read more details about Power Perps here: https://www.paradigm.xyz/2021/08/power-perpetuals/)
2. Going forward, the liquidity pool of Deri Protocol can support different derivative types (futures, options, power perps) at the same time.
Q6: What’s the 2022 roadmap of the Deri Protocol?
Launch of Deri V3, a revolutionary version of derivative dex, partnering with Venus in a defining partnership of DeFi 2.0;
Also, we are currently researching the “funding-fee-based perpetual derivative family” (our existing perpetual futures and everlasting options being two instances) and are going to roll out more innovative derivatives with practical values.
We are promoting a more decentralized governance and add more value basis to the DERI token.
Further grow the Deri ecosystem: we are going to set up a Deri Ecosystem Fund to help build a bunch of other DeFi projects (e.g. structural products, risk management tools) based on Deri Protocol as their infrastructure.
We are going to roll out Deri Protocol V4 based on the cross-chain-function-calling technology.
Q7: As for safety, what’s the audit background of Deri?
A7: First of all, speaking of safety, I want to point out that one of the primary reasons for Deri to choose Venus as the partner is for security consideration. We must choose THE most reliable lending protocol on BSC. And that is Venus. Back to the audit question, Deri Protocol V3 has been successfully audited by Peckshield. The audit report is here:
And meanwhile we are conducting a bug bounty on ImmuneFi:
Q8: Which platform can we buy Deri?
A8: For Decentralized Exchanges, there are:
you can also check out : https://app.deri.finance/#/token
Q9: Do options trading losses compensate for futures gains? Currently, the profit and loss of futures and the profit and loss of options are managed separately, so even if there is a profit from futures, the option is liquidated.
Deri is using Venus liquidity so it means Venus suppliers profit on it?
A9: Good questions.
For 1, that is not supported for now because we deployed separate pools for futures and options. but going forward we will merge these two pools then what you said is doable.
For 2, suppliers don’t profit on it directly because Deri is essentially a supplier too (so borrowers will benefit directly).
Q10: Do you have a video tutorial or some kind of youtube where we can learn about your project? Can you give it?
A10: We have a youtube chanel:
Q11: How to start trading on Deri? Any tutorial or article for new users?
A11: We have this beginners’ guide:
Also you can first practice in our testnet. please check this guide for testnet:
Q12: I understand that when I choose a position on your site, it is tokenized; could you explain why this is the case?
A12: It’s tokenized means your position is a token (an NFT) — you can do whatever with it that you would do with a token.This would make the trading business of Deri more composable with other dapps.
Q13: There are different trading zones in Deri Protocol, can you explain what’s the difference between them?
A13: Main zone is for top cryptocurrencies like BTC, ETH, BNB. Inno zone is for trendy symbols like AXS or innovative derivative types. Open Zone is our permissionless markets.
Q14: How is the Deri protocol funding rate calculated to balance the long and short sides of positions?
A14: Take perpetual futures as example:
It’s similar to the funding fee of perpetual futures on the centralized exchanges (e.g. bitmex). When there are more longs and shorts, the trading price will be higher than the index price, then longs will pay the shorts funding fee = trading price — index price.
Thank you all. please come to Deri’s website (deri.finance) to mine or trade!
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.