Telegram AMA Recap on July.2
On Friday, July 2, we had a Telegram AMA. The following shows recap of the questions with 0xAlpha’s inspiring answers.
0xAlpha:
Hello, my Deri fellows~ AMA time again.
First of all, a quick look-back. Since the last AMA, we’ve rolled out several things.
This Monday, we launched the Brokerage Mining program, which rewards those who refer their friends to trade on Deri. Every single contract a user trades, his/her broker could get up to 0.01DERI.
So, my Deri fellows please help spread this out and ask your friends to come to trade on Deri (but don’t forget to first ask them to bind your address as “Broker”).
You can find more details about Brokerage Mining via this link: https://app.deri.finance/#/broker
Another update is Deri just launched on Polygon. This is a big step for Deri. Since our launch, even though we made Ethereum a major field but there has been little trading volume on it, due to the gas issue. And now, finally we are on a Ethereum Layer2 platform. For those who would stay in the Ethereum world, now you can simply go from layer1 to layer2 and enjoy the high TPS and scalability there on Polygon.
And we will have a series of PR events together with the Polygon team too. Please stay tuned.
All right, let’s move to the question time now.
Q1: Solana seems to get a real traction in the market. Is it too exotic at this stage thinking on deploying a Solana pool?
A1: Yes, we are interested in getting on board on Solana. We are looking into it and planning to participate in their Hackathon soon. The thing about Solana is, it’s not EVM-compatible so we need to re-write the code. And it’s not even Solidity, it’s Rust, another programming language. So quite a bit of work needs to be done for such transition. (Maybe that’s the “exotic” part you were referring to?) But, the short answer is: Yes, we are looking into it and highly interested.
Q2: Any updates on listing DERI on major exchanges?
A2: Yes, there will be.
Q3: HECO abandoned, too?
A3: No, we are not abandoning HECO. We simply moving from V1 to V2, but part of the infrastructure is missing in HECO for the time being. And we are pushing for that. For example, we are sponsoring Chainlink to provide a 0.1%-threshold oracle for BTCUSD/ETHUSD on HECO. Once the infrastructure is ready on HECO, we will deploy Deri V2 on it.
Q4: If I do a 10x short for ETH and ETH’s price were to drop down by 5%, I would profit 50% from my initial deposit?
A4: Yes, that’s what 10X leverage means. Even though, I need to point out, 10X leverage really means the initial margin is 10%, which is the min requirement. That is, you don’t have to go with 10%: you could post more than that. Actually, we encourage you to carefully manage your leverage.
Q Cont.: I see. Hopefully there can be a 125x leverage like Binance’s in the future.
A Cont.: 125X is not likely for the near future. The current blockchain infrastructure is not capable of supporting such a leverage.
Q5: What’s the contract for DERI on polygon, I can’t find it.
A5: Docs is now up-to-date. please check it out here: https://docs.deri.finance/smart-contracts/polygon
Q6: An someone explain how Deri can solve the impermanent loss issue for the LP? I am too stupid to understand the whitepaper and the article from Chainnews.
A6: this is in the core design of Deri Protocol. So it’s thoroughly discussed in the whitepaper (v1). Let me simply quote from the whitepaper:
And just like the LPs of an AMM are facing the issue of impermanent loss (IL), the LPs of the Deri pools are facing similar issues too, but in a different manner. Deri LPs are facing market risks. Nevertheless, it is important to point out that such market risks are different from the impermanent losses borne by the LPs of spot AMMs. The fact it is called “risk”, instead of “loss”, indicates that the result could be either positive or negative, whereas impermanent “loss” is a certain negative consequence. In regard to market risk, the ideal scenario for the liquidity pool accommodating traders’ positions is that the long and short positions are equal so they cancel each other out. However, this would not happen spontaneously should there be no mechanism enforcing or inducing such states. While it is difficult to enforce a state of perfectly balanced long and short sides, the system could be induced to converge to such a state. Deri introduces the funding fee mechanism: the majority-side positions pay the minority-side positions a funding fee per block, proportional to the degree of imbalance (measured by the net position). When the funding fee rate is above some threshold, arbitragers would be induced to take the minority side. In reality, there would be more than one arbitrager competing for the funding fee, otherwise the only arbitrager would rather wait for the funding rate to grow big until it takes any action. Such arbitrage competitions ensure the funding rate cannot increase to a too high level, hence the long and short sides will not be too imbalanced. The arbitragers are motivated by profit but meanwhile help the traders and liquidity providers.
For further details please refer to: https://docs.deri.finance/whitepaper
Q7: Why by mining on Polygon, rewards are only accessible on Ethereum network ?
A7: Since Polygon is a layer2 of ETH, which is pretty integrated into ETH, currently we think it might be necessary to reward DERI on Polygon. Therefore, the rewarding is on ETH layer1. That said, Polygon has built-in bridge solution, and the DERI token is already on Polygon. So in any case you do want DERI on polygon, you can always bridge over yourself.
Q8: I think there’s a bug. I only deposited $1. I tried to max up my leverage till the max (10x) for shorting bitcoin. when I tried to execute the contract, it would fail. I tried multiple times. I think it only allowed me to have 1 contract at a 3.3x leverage for shorting bitcoin. The other day, it was working fine and it let me short eth at a 6.6x leverage.
A8: Not sure about the exact situation you were running into. But I guess you might have misunderstood about the trading volume. The perpetual contracts of Deir are traded per contract, each of which is defined by “Multiplier”.
For example, the contract of BTCUSD has a multiplier of 0.0001, meaning one contract is corresponding to 0.0001BTC. So by trading one 1 contract, you are like holding 0.0001BTC. If the BTCUSD price is currently 33000, then 1 contract’s value is 3.3U.
With 10X leverage, if you deposit 1U, you can trade up to contracts worth 10U. That is, when a contract is worth 3.3U, you can trade 3 contracts.
Q9: Now that there are too few users, is there any plan to increase users?
A9: Increasing users is our current №1 priority. The Brokerage Mining program is part of the work we have been doing for this. Nevertheless, for this purpose, we would like to ask of you guys, I mean the whole Deri community, to participate. Please spread this out. Share the Brokerage Mining to your friends so he/she can either bind your address as Broker so you can earn DERI for his/her trading, or he/she can further spread this out and become a broker him/herself. After all, it’s a community-driven DeFi project. Everybody has a stake in this.
Q10: In my opinion, the current problem is not a few chains, but the ease of use of the DERI. Few people will transfer from CEX to DERI.
A10: “Ease of use” involves several factors. Confirming speed and gas consumption are part of it. Our migration from ETH layer1 to Polygon is to resolve this issue. However, there are definitely other factors, e.g. UX design. But we would like you to be a bit more specific regarding how we can improve the “ease of use” of Deri. That way, you can help Deri a lot! As for “Few people will transfer from CEX to DERI”, I agree the whole DeFi derivative thing is still in very early stage, but I think it’s just a matter of time. The thing is, it’s too late if you start to do something when “that time” comes. Any projects that could enjoy their “time” coming are the ones that started before “the time” comes. Maybe long before.
Q11: I think these are some reputable altcoins to add to the platform: renDoge, UNI, wrapped Terra, and LINK. Would be great if you can at least add 1 or 2 tokens from this list?
A11: What do you mean by “add to the platform”? As a trading symbol? Or as base tokens for margin and liquidity providing? We are working on adding both more symbols or base tokens. Meanwhile, you guys please share with us what you would like to trade (as symbols) and what you would like to use base tokens (as margin / liquidity).
Q12: I think if you have an incentive for a short amount of time for people to do leverage trading, then this will increase the number of users on your platform.
A12: There was trading & mining, but it didn’t seem to be quite interesting to potential users. That’s why we switched to the current Brokerage Mining.
Q Cont.: Or even if you do an airdrop, it doesn’t have to be huge amount of money, to people who use your platform, it will get people to talk about your platform. Airdrops are just seen as marketing techniques in my opinion.
A Cont.: I myself, for one, am not a believer of airdrop. However, if you are referring to rewarding people using Deri, we are doing that already. Rewarding people using your APP is not airdrop though.
Q Cont.: I think as symbols for margin trading. I want to do margin trading with renDoge on your platform on polygon.
A Cont.: Yep, please share in the group what you want to trade on Deri. We will add more and more trading symbols in the future.
Q Cont.: Yes, that’s what I meant. it’s defi tradition to award early users with an airdrop who use the platform. Here are some tokens I want to leverage with: TEL, MATIC, WOO, TERRA, MANA, UNI, QUICK, RENDOGE, DSLA, and BNB.
A Cont.: Got it. thank you! and anybody else have similar ideas please share with us too!
Q Cont.: Also, for base tokens, you should accept USDC and DAI.
A Cont.: That’s not in the plan for near future though. For other base tokens we are thinking about accepting non-cash tokens, e.g. BNB, CAKE, AUTO on BSC. As for USDC or DAI, it’s extremely easy to transfer them into USDT or BUSD, so supporting such base tokens is on top our priority.
Q13: Can you send me an article regarding the brokerage mining?
A13: Here is the webpage: https://app.deri.finance/#/broker
Q14: The bear market is very helpful for developers. It gives you a lot of time to code and develop products for us peasants to use instead of us asking ‘wen lambo’ or ‘wen moon’ and wasting your time.
A14: I could not agree more! Now it is really the best time for us improving our products and rolling out more cool features. That is what we have been doing and will be doing. Thank you all for supporting us doing so.
0xAlpha:
Cool. I had a happy time here for the AMA. July is going to be another busy month for us. A lot of awesome things will be rolled. I will go back to work now. Bye, my Deri fellows. More later~
