Telegram AMA Recap on December 17th
On Friday, December 17th, we had a Telegram AMA. The following shows a recap of the questions with 0xAlpha’s answers.
Deri Protocol Telegram: https://t.me/DeriProtocol
Hello~ Deri Fellows! AMA time again~First of all, we had two great events to mark since last week, with one event still going on!
We have launched our innovative new website featuring a highly distinctive and detailed, but Easy-To-Use User Interface! Following weeks of intense community user consultation and interviews, it’s finally up and running!
Many of you have contributed to this new website by offering suggestions and feedbacks . I would like to thank you helping out the team during the development.
I hope you like the new UI. If you like it, please let your friends know about it!If you don’t like it, please let us know about it!We are always all ears!
Another event: the Trade-to-Earn Epoch 3 event is still ongoing, stake your DERI into a given pool to increase your boost factor, trade & earn your DERI rewards! Unlike the previous Trade to Earn events, however, there is one small change you should be aware of: The Prize amount will increase with the increase in the number of participants. Currently, there are 500,000 Deri in the prize pool. After the number of participants reaches 1,500 addresses, the prize pool will increase to 1 million Deri.
Trade-to Earn Epoch 3 Event: https://twitter.com/DeriProtocol/status/1468533602388377601
OK, now the time to address questions.
Q1: When BNBUSD options?
A1: We are working on rolling out more symbols and underlyers. But to roll out any new symbols, a series of prerequisite dependencies must be met first. As of now, I cannot give a timeline of the rolling-out of BNB options. But we are definitely working on this.
Q2: Why Deri Dapp not in trust wallet and MCDex is in trust wallet？ Deri is far superior to MCDex.
A2: By “in trust wallet” did you mean for people to use Deri Protocol from trust wallet. I believe you are able to use Deri Protocol from most of the mobile wallet, including Trust. Trust is among the wallets that we support in early stage. But If you do encounter issues when using it, please let us know so that we can sort out the issue.
If you were referring to some kind of “highlight window” of Trust Wallet, then that’s the wallet’s call, But since you mentioned this, we can definitely talk to the Trust team to see what’s going on.
Q3: I am really curious how you guys will gamefi derivatives?
A3: I am curious about that too!
One easy thing we can do is to embed derivative trading into the game scenarios. This is something we are already seriously discussing with gamefi teams already.
But we want to do more than that! So we even have this bounty program for the community to contribute their creativities on this matter: https://github.com/deri-finance/deri-gamefi/issues/1
Q4: When will V3 come out?
A4: The code is currently under audit. We aim to roll it out at the beginning of 2022. Please stay tuned.
Q5: Why Deri APY on BSC pool so low will you increase it?
A5: Were you referring to the DERI-based Inno Zone pool? The allocation of the mining yield is not small at all compared to the other pools. Currently, the APY is low because a lot of DERI tokens have been staked into this pool and thus diluted the APY. If you are looking for higher APY, there are such pools. For example, you can provide liquidity to the DERI-BUSD pair on Pancakeswap for a higher APY, but please keep in mind you will bear the risk of impermanent loss.
Q6: Sorry for a lot of questions but İ want to understand. Cake liquidity very high but APY 75,57% and when cake price was 0,5 APY was 200% to bring a lot of investors.
A6: Different projects have different tokenomics. There are projects with even higher APY than what you mentioned. but please note that high APY is a double-edged sword.
As for Deri’s tokenomics, the current mining yield is a balance between the miners’ wish for higher APY and the DERI hodlers’ wish for lower APY. So far it’s been a relatively balanced status. Please if you do think there is something unfair, please discuss it in the community — we are constantly listening.
Q7: Hi, how many trades to earn epochs left？ I see that if people go trading, then they don’t care about holding DERI. As soon as they claim their Deri rewards, they will sell. Meanwhile, I haven’t seen many ways to burn Deri except to buy back and burn. Although I believe in the project, I don’t see any reason to hold DERI.
A7: We will decide on the continuing of trade2earn epochs on a discretionary basis. But most likely we will have another one (epoch4) for the launch of V3. But Epoch 4 will bring in a lot of new stuff, maybe jointly with a big partner. Please stay tuned for that.
Q8: I see that if people go trading, then they dont care about hodling DERI. As soon as they claim their Deri rewards, they will sell. Meanwhile, haven’t seen many ways to burn Deri except of buy back and burn.
A8: As for the claim-and-dump issue, I agree it puts some pressure on the token price. but please note it’s NOT just for the trade-to-earn programs. it exists for liquidity mining too. but shall we stop liquidity mining because of this problem? I guess no.
The thing is, we never give out DERI tokens for free. All the mining programs (including liquidity mining and trade-to-earn) follow one principle: the DERI tokens are distributed to those who contribute to the ecosystem. You, as an investor, contribute to ecosystem by buying the tokens, which is great. But please be reminded that the tokens you have bought would be worthless if nobody were using Deri Protocol to trade derivatives or nobody were providing liquidity. People just contribute to the ecosystem in different ways. Together we make it work and succeed.
Q9: Is the purpose of the project side to sell tokens to allow investors to bear the selling pressure of traders?
A9: Please see my reply above regarding the different contributions by different roles of the ecosystem. But I agree with you that the DERI tokens will need more value basis. This is something we are working on. The value basis would be a natural result of a prosperous ecosystem.
This is sort of like the situation of those internet gaints in their early stage: they don’t seem to have enough ways of generating profits. But those investors (mostly VCs with long-term visions) didn’t have a problem with it (those VCs having problems with this would not have invested in the then-startups). One thing we can learn from the early stage of the internet (the 2000s) is that: the most important thing is whether your product can provide value for users or not. If yes, then it’s only a matter of time for the product to provide value for the investors.
Q10: Bsc Deri mine pool is too low in annualization, and there is a risk of losing tokens when it is pledged. Can we open a separate mine pool that is not used as a hedge? Investors just want to invest in tokens and lossless mining.
A10: I guess you are talking about a pool where you stake DERI only for the sake of staking, i.e. the DERI tokens are held there to only earn some yield. But how can that help with the Deri ecosystem?
At least I don’t see the point of doing so. Please share your opinions here and educate me for the purpose of such a set-up. By “purpose” I mean some real added value to the ecosystem. If it’s just for the DERI holders to get more DERI, that’s not in line with the mindset of Deri Protocol. You might find such games in a lot of tokens without any real business, but DERI is not one of them.
Q11: Please invite more marketing companies! Even if some expenses are paid, the funds for repurchase can also be used as marketing funds. I believe no investor will refuse this proposal
A11: we do work together with some marketing companies. but please note that Deri Protocol is a product-driven project. We would rather let our product speak for itself, rather than hard marketing.
I want to clarify on the your second sentence “the funds for repurchase can also be used as marketing funds” — this is NOT true.
You might have some misunderstanding of how the protocol fee works. It seems like you thought the collected fees go to the team’s wallet so the team can spend it in whatever way we want? That’s simply not the case.
The fact is: the protocol fee collected from 80% of the transaction fee goes to a smart contract that can do one thing and one thing only. This logic is written in the code. Please check out the smart contract for details:
Q12: What do you think of adding BTCB as a base token on DERI? We would be the only platform giving the possibility to BTCB holders to hedge and speculate with their coin.
A12: You will have that in Deri V3.
Q13: YOU GUYS can tell everything you want about how beautiful is the DERI tokenomics and how well it is working. what I’m saying is to be objective and look at ALL the projects who do liquidity mining. They ALL permableed. They have hypes and than permableed. This to me should make projects thinking. Is it maybe that the model is not a winning model? as said is not only referred to DERI is referred to high caliber projects like sushi too. IT should make you guys thinking instead of sitting on the IDEA of how beautiful is the model you made. I also have a question, If we constantly have less mining rewards , how do you think you would attract and increase TVL if APY is constantly dropping??? how would you achieve organic growth on pool TVL if rewards lower by the time??? This to me does not look like a winning model for organic growth. You can tell me that buy back will help out in whatsoever manner but still how would you increase TVL , with extra stimulus??? This sounds like complaining but is just serious concerning about tokenomics/TVL/organic growth. New UI is great and awesome, V3 is gonna be spectacular, but we cannot rely on constant news and updates.
A13: why do you think the APY would be lower in the future?
It’s true that the number of DERI tokens mined out in unit time will decrease but that doesn’t necessarily mean APY would be lower.
Since Deri Protocol is a project with real business (not a memecoin like SHIB and the like), in the end of the day the success of the model really depends on how many people are using it. If Deri becomes (I am sure it will) the go-to place for people trading derivatives, none of the things you mentioned here would be a problem. And that is what we are working for.
Q14: Hi Team, any plan for CEX listing or Dex whitelisted like babyswap, apeswap, biswap, 1inch？
A14: The token will be listed in more CEX for sure. Regarding DEX, we have enough DEX already, don’t we? Wouldn’t Sushiswap and Pancake serve your buy-n-sell needs well?
Q15: Any new updates upcoming? seeing it dropping everday aint good.
A15: We have a lot of updates. Please stay tuned.
Q16: Haven’t found a clear calculation and explanation on liquidity share value in the whitepaper. My question is: Will my liquidity(in Deri) in Future Inno pool have fluctuations? If I stake 100 Deri in the pool, is there any possibility that I can only get back 95 Deri?
A16: About liquidity share value: when you stake your BUSD or DERI into a pool, you are converting your BUSD or DERI into liquidity shares, but not necessarily at a ratio of 1:1. The Liquidity Share Value is the converting ratio. But that ratio is changing due the pnl of the pool. If you have ever bought a mutual fund of stock, the concept of “fund share value” is quite similar.
Will my liquidity(in Deri) in Future Inno pool have fluctuations?
— Yes, it does.
If I stake 100 Deri in the pool, is there any possibility that I can only get back 95 Deri?
— Yes, it’s possible.
Q17: Thank you for the clarification and for returning us down from speculators heaven. What other utilities/features do you have planned for Deri as at these massive volumes we aren’t making much money?
A17: Please refer to this FAQ: https://docs.deri.finance/general-faq#whats-deris-function-and-value-basis
Q18: What about youtube marketing ?and twitter marketing did you deal more people for marketing to $Deri?
A18: First of all, we do all of those marketing. But you can all help out with the promotion, right? If you all go ahead and tell your friends about Deri, that would be more effective than any of the YouTuber or Twitter KOLs.
Q19: So it means if the option mark price is 50 BUSD for a BTC option and I purchase 1 option, the volume is 50 BUSD?
A19: No. following the derivative tradition, the volume of options is in terms of the notional, i.e. the value of the underlying asset. In your case, the volume is the value of 1 BTC, not the mark price.
Q20: Can you please help me a little bit? When I long put options but the price goes to the other direction what happens I don’t fully understand? I don’t lose money but it goes back to the Margin and I can withdraw that? I don’t fully understand why the Margin Held changes and my balance can go negative. Or I still can lose money on options?
A20: If you long a put option of BTC and the BTC price falls, you will have positive PnL (i.e. making profit).
But the margin requirement is another thing. When a far out-of-money option goes close to ATM, the margin requirement will be higher because it’s getting into a more risky price rage (with larger Delta).
More margin should be held for higher risks — this is the rationale behind our margin requirements:
Q21: What’s the BSC address？
A21: In general, it’s a bad practice to ask for token address like this. You could become an easy target of the scammers. As for your question, please refer to:
Q22: Do you burn 80% of the platform revenues? If yes, is there any website that we can track the transactions?
A22: Please check the smart contract, which is even more transparent:
Q23: When will you speed up your work about marketing?
A23: We are doing this all the time.
Q24: Will the launchpad projects begin to take place in the first quarter of 2022? Will the apy rates increase? What are your plans on attracting people and increasing demand for $Deri?
A24: Will the launchpad projects begin to take place in the first quarter of 2022?
— Not sure what is the “launchpad” you mentioned.
Will the apy rates increase?
— That depends on the TVL and the token price.
What are your plans on attracting people and increasing demand for $Deri?
— that’s what we have been all the time. We are providing and improving out product so more and more people will use it.
Q25: What are Deri Protocol’s advantages when compared to other DeFi projects? (Especially Dydx)
A25: Here is a comparison between Deri and the other derivative platforms.
Especially regarding dYdX, it is adopting a half-decentralized approach. If you have heard about its recent incident due to the AWS outage, you will understand their approach much better.
Q26: There are a lot of Busd pools on the website, what are the differences between them? Will there be a farming section in Deri website like on PancakeSwap?
A26: Among the BUSD pools, Option is for option trading. Main zone of futures is for the futures of top cryptocurrencies like BTC, ETH. Inno Zone of futures is the futures of experimental underlyings, e.g. AXS. As for the farming section, this is Deri’s counterpart:
Q27: Will Deri be deployed on l2 ?
A27: Yes. In fact, it’s currently deployed on Polygon. But we are also looking into other layer2 solutions such as Optimistic and ZK roll-ups.
Q28: Traders have no reason to hold Deri. What can Deri endow? For example, holding a certain amount of Deri can open a thousand times contract?
A28: We will add more and more privileges to DERI holders.
Q29: Does Deri have any plans to synthesize assets?
A29: No plan for that as of today. Synthetic assets and derivatives are two different things. We are in the derivative sector.
Q30: Any new partnership with $Deri in 2022?
A30: One big thing about Deri V3 is in-depth partnership with another top project. This will be announced soon. Please stay tuned.
Q31: When can stake $Deri and earn other token like Matic, BUSD..?
A31: Currently you can provide liquidity to DERI-USDT pair on Sushiswap to earn SUSHI. Also, you could participate in the trade-to-earn program to earn BNB.
Q32: When will the Deri app be on mobile and IOS?
A32: A lot of people are already using Deri from mobile devices and iOS. You just need a wallet on your mobile phone.
Q33: When other project will be IDO on Deri platform?
A33: Deri is not a spot exchange. So there is no IDO on Deri.
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.