On Friday, February 11th, we had a Telegram AMA with Deri’s co-founder and CEO, 0xAlpha. The AMA covered several meaningful and valuable Q&As related to Deri token and project development.
The AMA Entrance: https://t.me/DeriProtocol
Let’s watch the detailed & complete AMA recap below:
Hello my Deri fellows! AMA time again！As always, first some updates:
Deri launched a demo testnet event, in which you can freely experience Perpetual Futures & Everlasting Options trading on Deri without any risk of real funds loss, moreover, you can get 50,000 real DERI tokens as rewards! The event was suitable for newbies to get a deeper understanding of Crypto derivatives trading on Deri.
The event expired yesterday. Congratulations to the winners! Your DERI rewards can be claimed today.
Please note that the testnet will always be there. Even without events, you can always to go there practice and familiarize yourself with Deri Protocol.
All right, let me start to address questions now.
Q1: Shouldn’t you activate the privilege function to get more utilities and use cases on the token? I just thought that would be better than leaving it just as governance, even now.
A1: Yes, we are working on that. This was designed from the very beginning, and of course we are gonna make use of it. It just needs a bit of development work. Please give us some time.
Q2: The long-term team still has 0.26 billion tokens to unlock! What kind of mentality do you want our investors to treat projects and teams?
No matter how long it is locked, these tokens are valuable at present! And these values are all contributed by investors! When the team says they don’t pay attention to the price, will investors pay attention to the users of the platform?
A2: First of all, the team doesn’t have 0.26 billion Deri. It has 0.16 billion. The 0.26 billion Deri locked in the vesting vault smart contract include the team’s and the early investors’. We never said we don’t pay attention to the price. We only said we don’t interfere with the price. What we have been doing is to provide the best product in the sector, of which the price would be a result. This was made clear from the very beginning.
There are two types of Crypto projects: those who are focused on their products and the price would be a consequence of great products, and those whose only product is the price. Deri belongs to the former. This is a free world: we have our right to choose our road and you have your right to choose yours. I said this many times: if you believe in the second type of project, go for it! please don’t try to turn Deri into that type.
In long run, only those sharing the same values can go together!
Q3: The Chinese community has been asking V3 to update the Chinese version. It has been so long, and there is no efficiency at all. What is the DAO mode? Because there is no Chinese version, the Chinese community has lost a lot of contacts.
A3: Multi-language support is now on top of our priority. Chinese, together with several other languages, will be supported soon.
Q4: Why if the project is solely focused on the product in the short team did not wait to release the token? Why this urgency to have a token? DyDx does not have a token , Opyn does not have a token.
A4: Without the token how else would the project get started? Or specifically, how would you organize the liquidity (in the early stage)?
The thing is, token is the way to organize the economic activities (in the center of which is liquidity) of DeFi projects. Indeed there are some projects that are not following this approach (or did not follow the approach in their early stage but changed later), but few had positive results on such tries.
Among the two examples that you mentioned, DyDx does not really a token because it’s not a typical DeFi project (so far). It behaves more like a traditional centralized exchange (it is one in its core) so it doesn’t really depend on the token to organize liquidity. But ironically, even under this condition, DyDx issued tokens anyway.
As for Opyn, it’s not a successful project anyway so there is no point to learn from. Have you actually tried Opyn out? If not, I suggest you try it. Then you would have a better idea about the advantages of Deri. The thing is, among all the DeFi option solutions, Deri, even still with defects and drawbacks, is almost the only practically usable one. If you have tried out many of them, you know what I am talking about.
Q5(1): Who sold Deri at this low price? strategic investors? project development team? Or do early stage investors suffer losses? All because the team didn’t care about its token. I hold BTC with guaranteed value and still get high rewards (Deri+ Btc+ XVS) while holding Deri only 5% APY. So who needs Deri coin?
A5(1): Sorry I am not able to answer your question who. I can only tell you that the team has not.
Again, we never said we didn’t care about the tokens. It’s just that we believe in that a great product is the foundation of the token. Otherwise, it would end up with a ponzi game. And token is still in the core of the project!. So who needs Deri coin?
Q5(2): When Deri coin has not been appreciated as valuable coins (btc, eth, bnb…) then the incentive reward for holding coin (Deri pool) will be allocated the part of Deri to buy back. more than. Since then, the reward from Deri pool is higher than that of other liquidity pools. then Deri holders will have more benefits when holding Deri coins has not been tied up in transaction liquidation. And this helps the Deri coin price to be more stable and increase in the future. This also helps Deri coin miners from other liquidity pool not to sell immediately upon receipt.
A5(2): Even though “buy back” is not a correct term (we don’t buy it and put into our pocket. instead, a smart contract would buy and burn it. So it’s not a “buy back”), but I get what you meant. and I agree with you that “ the incentive reward for holding coin (Deri pool) will be allocated the part of Deri to buy back.”
And that’s exactly what we have been working on:
We are here to provide the best trading protocol so that people will use it, more and more. When people use it more, more income will be generated.
Part of the income (80% of the transaction fee, to be precise) will be used to buy and burn Deri.
If the trading volume is huge enough, the volume of Deri burned could surpass the volume of Deri minted by liquidity mining, which then becomes a deflating tokenomics.
And the increase of trading volume benefits liquidity miners too.
For example, this testing account of mine has earned a mining PnL of 137 dollars (with 10000 staked from the launch of V3).
When we successfully make this stable and sustainable, then liquidity miners would live a happier life and depend less on the Deri tokens they harvested.
We are not there yet, but we will get there!
Q6: Who is my legal contact if the project crashes?
A6: Who is your legal contract if Ethereum crashes? Vitalik Buterin? Who is your legal contract if Bitcoin crashes? Satoshi Nakamoto?
It’s a DeFi project, which means we simply provide a protocol and every single detail is out there for you to check. Let’s again remember the motto “Verfiy, don’t trust!”.
Basically that is saying, I (or the team) might be a saint or a criminal but that should not matter in this world. You should not make your judgement based on who I am. Instead, you should make your judgement based on whatever information out there on the blockchain. Otherwise, you are not doing a crypto investment.
Q7: Anyone knows if Deri is like Perpetual Protocol using UNI-V3 ? otherwise which swaps does Deri use?
A7: No, Deri is not like Perpetual Protocol using UNI-V3. Neither do I agree with Perp’s approach (the so-called VAMM).
The trading mechanism of Deri Protocol is called DPMM (stands for Deri PMM or Derivative PMM), which is a version of PMM adopted for derivatives trading. (FYI, PMM was originally come up with by DODO for spot trading.) More details DPMM are beyond the scope of AMA. If you are interested, I suggest you check out the the appendix of Deri V3 whiepaper (A Brief Review of DPMM).
Q8: Are you planning to develop a power option in the Deri protocol? Example products: Squeeth in Binance smart chain, 01 protocol in Solanar
A8: Yes, that is in the pipeline.
As a first step, we sorted it out in the theoretical level. you can check out this paper published on our Github. and we are working on the implementation.
Q9: What measures have been taken to increase trading volume? It is still practically zero both for options and perps.
A9: The trading volume was relatively low comparing to the peak time in the end of 2021. This was partially because the migration from V2 to V3 interrupted everything. And right now it’s picking up.
Also, we are planning on some programs to boost the trading. The first one was this Practice-to-Earn on testnet, which is to help people get familiar with Deri V3. and there will be some other programs coming soon.
Q10: Is the investment round (private, seed..etc) in vesting phase or is it over? and when does TGE take place? Can you share some basic information about tokenomic?
A10: The kind of investment rounds you mentioned were over long time ago.
TGE was 367 days 21 hrs ago (https://etherscan.io/tx/0x538c63111f26d68a17fcc9163085934174e847d288e0782dcfa09fdee7d97ce3)
Basic info about tokenomics can be found there:
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.