On Friday, April 22nd, we had a Telegram AMA with Deri’s co-founder and CEO, 0xAlpha. The highlights of the AMA: 1. The issue of DERI price 2. Deri Protocol’s trading volume 3. Upcoming multi-chain expansion- Arbitrum
The AMA Entrance: https://t.me/DeriProtocol
Let’s watch the detailed & complete AMA recap below:
Hello, Deri fellows, AMA time again!
It’s not long since our last AMA(April 8th), the important highlight of today’s AMA is about the upcoming multi-chain expansion! First, some recent updates:
1. The BNB Chain Revelation Hackathon is underway. Deri has posted the $3000 bounty on it ! Calling out to all of you builders out there!Apply for the Hackathon here
2. Three new listings of perpetual futures on Deri: SOLUSDT perpetual futures & LUNAUSDT perpetual futures & DOGEUSDT perpetual futures are live now for trading. You can go long or short on them with up to 10× leverage.
3. The highlight for today: In the recent community voting regarding deploying Deri Protocol to a new network, our community chose Arbitrum. So we are starting the work of deploying Deri Protocol onto Arbitrum. As a first step, next week we will first launch a testnet version for you guys to try it out.
OK, now let me start with the questions.
Q1: What is the current strategy with the chain expansion? We have seen that the existing chains (BSC & Polygon) are struggling to attract users/volume. This being said, what kind of actions will team take in order to prevent the new chain becoming another ghost chain?
A1: Per the community voting result, the next step is to deploy Deri Protocol on Arbitrum. This step itself is to attract more traders from the Arbitrum community. Also, we are rolling out a community-driven development plan to build a series of end-user apps to accommodate different kinds of end users, from dummies to professional traders. We have listed some ideas here, which already started off with the bounty program “Deri for dummies”.
We have received a lot of complaints about that Deri’s products are too complicated for regular users to use. That’s part of the reason for the low trading volume.
The current application functions provided by the official website are more suitable for relatively professional traders, which is one problem for the relatively low trading volume. When the community developers are involved, we will have a community-driven application website (parallel to the current official site) hosting all kinds of functionalities accommodating different groups of people.
Q2: What about the multi-chain expansion? Will it impact the DERI circulation?
A2: I take this question is about whether the multi-chain expansion impacts the inflation rate, i.e. the DERI tokens that will be mined from the new blockchain networks. For this step we are to take next, i.e. the expansion to Arbitrum, it will have very little impact on inflation, because we are considering simultaneously merging the current the pools on BNB chain to two so there will less DERI harvest on BNB chain (less pools). There will be DERI tokens mined from the pool on Arbitrum, but there will be less DERI tokens mined from BNB chain. Therefore, in total, the inflation could be kept unchanged.
Q3: Due to current tokenomics, there seems to be nothing stopping the constant token dumping. In addition, when we add the upcoming vesting unlocks , the situation looks catastrophic for the current holders. Will there be any actions taken in order to prevent DERI from becoming a totally worthless(price wise) token?
A3: Trading volume is the key.
Right the problem we are facing is the inflation: DERI tokens keep being mined out from liquidity mining but they’re burned as fast. The price decrease is not primarily caused by vesting unlocks. This is very transparent on chain: you can check out the large investors of DERI tokens yourself and see if there are large dumps. However, there new DERI tokens mined out by the liquidity providers — this inflation is the reason. But this does not mean we should turn off the liquidity mining. If we can boost the trading volume to a certain level, the protocol fee collected from the trading fee would burn more DERI tokens than the newly mined tokens — DERI would become deflating! So that is what we are working on: boosting the trading volume so there will be more burning!
Q4: Isn’t this action drowning the token?
(About 40% APY on liquidity mining)
A4: The inflation has NOT been increased at all! The increasing APY number is primarily due to a higher interest rate on some of the base tokens (CAKE at this time).You can check out the APY details by looking into the pool staking page.
Q5: Can someone explain to me: Why traders do not come and use Deri platform?
A5: That’s what the team has been working on. There might be two primary reasons:1. traders don’t know Deri 2. Deri is not suitable for them
For 1, we are carrying out more promoting activities so that more people know Deri. But this is the part where you can help out: please help to promote Deri Protocol among your traders friends!
For 2, I guess nobody thinks the Deri Protocol itself is not well designed (at the protocol level), but it’s indeed complicated for regular users. We are rolling a community-driven building plan for a series of Deri-based applications for not-so-professional users.
1.Would you please share Deri team’s plan to attract more traders to Deri derivative platform?
2.When Deri Mobile APP will be launch? All of traders are using App today.
3.Any marketing program to increase Deri holders in this quater?
For 1, like I mentioned in the previous answers, we are rolling a community-driven building plan for a series of Deri-based applications. This will make the Deri-based applications very diversified, suitable for a wide range of users: from dummies to pro derivative traders.
For 2, there is no plan for our own APP yet. That’s simply not how web3 applications work. Since the activities on Deri need your signature, it has to been operated from a wallet. You might have seen some applications with their own APP, but those are either centralized exchanges (like Binance), or fake DeFi.
For3, a series of marketing events are being ranged together with the launch on Arbitrum.
Q7: When will the DERI enter the major exchanges? e.g Binance , Okex , kucoin, Huobi
A7: We are working on this matter. But per the requirements by the exchanges, we cannot disclose. Pre-disclosing such matters will jeopardize the listing — I don’t think that’s that you want.
Q8: Consider using somethings like FTX and BNB, fee repurchase of DERI and logout of DERI?
A8: First of all, “repurchase” is not a proper term. There is absolutely no “repurchase” mechanism within the tokenomics, which would make DERI a security token. That would cause a lot of trouble for us and definitely no good for the token holders.
But I think you are really asking about the burning. Yes, there is burning mechanism! You can check out the burning here
Currently the only problem is that the trading volume is not large enough. When it is large, more DERI tokens are burned than mined, then DERI becomes deflating.
Q9: In addition to burning, is there any other means to reduce DERI selling pressure, such as direct staking DERI？
A9: There is already a liquidity pool for staking DERI, check out this on our website.
Q10: How can Deri Protocol compete with DOPEX, GMX?
Deri is not exactly the same thing as GMX, which is a margin-based spot trading DEX (It’s like DODO with leverage).
There are some parts Deri and GMX serving similar functions, like the perpetuals of BTC and ETH, but that’s only part shared by Deri and GMX. GMX, being a spot exchange, does not have the flexibility of derivatives. For example, it could only have very limited trading symbols (4 for now) and it can only provide “perpertuals” (technically, what GMX provides is not perpetuals but margin-based spot trading). It cannot provide anything nonlinear (e.g. options or powers).
It’s not exactly the same thing either. Dopex is an option-based structural product. that is, it’s something on top of options. So it’s not a direct competition between Deri and Dopex. However, like I mentioned, we are rolling a series of high-level Deri-based products, which would include structural products. That is where Deri (or the Deri extended family) will have some competition with Dopex.
Q11: Why is the price plunging like there is no end? Will you change your economic model?Why they are constantly selling tokens?
A11: Like answered above, currently the selling pressure is from the newly mined DERI tokens from the liquidity mining. However, we should turn off the liquidity mining. Actually we tried that on Polygon, the pool TVLs became very small, insufficient to support any serious trading.
So the solution is not to change the “economic model” (the liquidity mining). The solution is to boost the trading volume. And that is what we have been working on.
Short answer is:We know the problem. We know the solution. And we are working on it.
Q12: We know that Deri has plans to support multi chains. But for some chains like Erc-20, when the traffic is high, the cost will skyrocket along with the long time. So what is the solution to this problem?
A12: Actually we started from Ethereum, from Deri V1. And it’s exactly like what you said, the cost was horrible. That’s the reason there was barely any trading volume on Deri V1 deployed on Ethereum.
The solution is that we should avoid costly networks like Ethereum Layer1.
Per the community voting, our next stop is Arbitrum, which is reasonable in terms of gas cost.
Q13: Do you ever trust leather coin? Why is the staking rate so low? I think the management is dishonest. I don’t trust his own coin. APY doesn’t rise. They are constantly selling tokens.
A13: You should NOT make you decisions based on your trust of people (e.g. the management team). You should make your decisions based on what see on blockchain. What the team has done is completely transparent on blockchain — that’s what you should trust. Regarding there is constantly selling tokens, I explained what’s going on.
Again: Don’t trust us. Trust blockchain.
Q14: There are more and more different chains and Deri will support multi chains. So what are the factors you will consider to decide to support that chains?
A14: First of all, the choice of supporting which blockchain is by the community. The recent decision of going to Arbitrum is a result of community voting. If you ask me, I myself would consider the followings:1. Whether it’s evm-compatible ecosystem (especially whether it has the dependencies that Deri needs)2. Performance/Speed 3. Gas cost
Q15: What will be the requirements to list a token ? The popularity of that coin or will it be the voting from the community ?
A15: I assume you are asking about listing a symbol for futures/options/powers trading on Deri. Right now it’s based on popularity. Going forward it be completely community-driven.
Q16: Can your DEX products support copy trading? I like this feature when trading futures & options.
A16: Deri Protocol itself is a protocol. So it does not support that. However, what you said could be one of those products on top of the protocol. Such products will be our focus in the community-driven building. You are more than welcome to come up with ideas, or even participating in the development.
Q17: Has the private token unlock schedule for DERI investors ended? When will team tokens be unlocked?
A17: They are partially unlocked (unlocking is linear procedure, not a one-time action). You can keep an eye on the tokens by looking at the DERI token page on Etherscan.
Again, I want to emphasize this:
I see a lot of concerns regarding the selling pressure. Please keep in mind that the team holds a lot of DERI tokens so we are probably more worried about this than any of you. The team is a holder just like you! We are on the same ship!
But here is the thing:
We know the problem: Selling pressure is from the newly mined tokens.
We know the solution: Trading volume is the key. As long as there is enough trading volume, DERI token would become deflating.
We are working on it!
Please stay tuned with our expansion to Arbitrum: you voted, we will do it.
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.