Telegram AMA Recap

On Tuesday, June 8, we had a Telegram AMA. The following shows recap of the questions with 0xAlpha’s inspiring answers.

#1

Q: Are there news about decentralized oracle? Is the balancer V2 still in place or there are developments with other projects like band, api3, link etc? Is the BSC V2 going live just with BUSD pool or DERI pool too?

A: Deri V2 is based on on-chain oracle, provided by wootrade. And we are also talking to Chainlink to discuss a possible cooperation with them. Balancer V2 rolls out, but it’s currently on Ethereum only. Deri V2 won’t be deployed on ETH layer1, so we cannot use Balancer V2 oracle yet. The BUSD pool of V2 is the first step. We will definitely bring more products within the V2 framework.

#2

Q: How about layer2? Polygon xdai anything in the air for Deri? Is there the any IDEA to bridge over SOLANA? What about Polkadot?

A: Yes, we are going layer2 too, and the first stop is Polygon. We held a phone with the Polygon team (their head of DeFi) and sorted out all the issues, so the next step is that we will go ahead and deploy Deri on polygon. Solana is not in the immediate agenda though, as it requires rust development. But we will be there. Once we have more hands, we will definitely provide a lot of stuffs like this. We actually had done some job like this already but not systematically yet. We will work on that.

#3

Q: I would also like to know what you think about Pluto’s network and their Virtual AMM. They say that there is no need for liquidity provider. How is that possible? The same structure seems to be used from PERPETUAL protocol, too. What do you think about it?

A: I am not particularly familiar with this Pluto network, but if it is based on the so-called virtual AMM framework, then it should be very similar to the Perpetual protocol, which I discussed before. I don’t think vAMM is the right way to do DeFi derivatives. It just does not make sense financially.

#4

Q: What about BUSD pool? Do we need to migrate to new pool?

A: Old BUSD pools are not being rewarded anymore. If you still want to participate in the liquidity mining, you have to shift your BUSD from v1 to the new v2 BUSD pool.

#5

Q: If I stake BUSD to mine DERI, will it have a deposit fee or withdraw fee?

A: You just pay the general network fee. Liquidity mining on Deri pools is subject to market risk due to the possible net position. However, the probability of a negative result (a loss) on Deri liquidity farming is much smaller than that of typical spot exchanges due to the protection by arbitragers. Kindly check out our mining FAQ for more information: https://docs.deri.finance/mining-faq

#6

Q: Why the chart of btcusd in bsc stops? Should we migrate LP to new pool manually?

A: Are you referring to the old btcusd bsc v1 pool? The old busd pools won’t be supported anymore, that’s why people have to migrate their liquidity to the new busd v2 pool. If you have liquidity on the old BUSD pools, kindly migrate them manually to the new v2 BUSD pool.

#7

Q: I added liquidity a few times, only the first time I got an ERC721. Is this normal?

Similar to Uniswap v3, with Deri Procovol v2, LP tokens are being replaced with an NFT (ERC-721) which now contains the unique position boundary data (unique token ID) of liquidity representation.

A: I see quite a few people got confused because they don’t see an LP token as they did with V1. Since the liquidity providing of Deri V2 is much more complicated than that of V1, it could no longer be represented by ERC20, as in V1. Instead, we have one ERC721 to record all of your liquidity contribution. So, no matter how much liquidity you added to the pool, you will have one token, the DLT ERC721, to record all of your contribution. There will NOT be any additional token minted to your wallet if you deposit some additional liquidity. Instead, this will be updated inside your DLT ERC721 token record. You can actually look into the blockchain to see this.

#8

Q: Will there be more alliances and collaborations?

A: We are making a great effort to make alliances with other DeFi projects. But things should come one by one. Please be patient. We will soon have something big with autofarm, and we will be actually interacting. Thank you for your suggestion on the cooperation with Sushi. We have a TG group with the whole sushi team there and we are in touch. So, once we have something making sense, we will definitely bring it to reality.

#9

Q: What happened and why is the PNL so high in V2, much larger than V1?

A: Without looking into the details, liquidity mining on Deri trading does have a PnL. That is why the webpage displays a mining PnL. It’s not the loss is much larger than V1, it’s just Deri is attracting more and more trading activity, so that now the mining PnL is a little bit more volatile than before. But overall, it should still be relatively small.

#10

Q: Can you list some killer features of Deri Protocol that make it ahead of its competitors? What is the competitive advantage your platform has that you feel most confident about?

A: Besides the “killer features” that Deri V1 has, Deri V2 has some additional ones:

○ Dynamic mixed margin (supporting multiple tokens as margin)

○ Dynamic mixed liquidity providing (supporting multiple tokens as liquidity)

○ Multi-trading-symbol within one pool (so that multiple trading symbols sharing liquidity)

Also, I would like to refer you to this graph for the comparison of Deri with other projects.

#11

Q: Deri Protocol thinks that more real-world use cases will emerge for NFTs as time goes on, why should we take NFTs seriously?

A: In Deri V1, the position token was implemented as NFT (ERC721). And in Deri V2, we moved even further, the LP token is now implemented as NFT too. The way Deri adopting NFT in DeFi application is innovative and representative.

#12

Q: Security and user interface are the most important aspect that users see on a platform. How has Deri Protocol worked on this? Is Platform suitable for Newbies in the crypto field?

A: Yes, please come and try out Deri. For security, we don’t collect information so there is no information leakage, and please check our code audit report for further information: https://docs.deri.finance/code-audits