Telegram AMA Recap on June.25

On Friday, June 25, we had a Telegram AMA. The following shows recap of the questions with 0xAlpha’s inspiring answers.

0xAlpha: Hello my Deri fellows~ How you doing? We used to do AMAs at 3AM UTC time, which is friendly for Americas/Asia but not good for Europe. It’s the first time we do AMA at this Europe-friendly time of the day. Going forward we will do 3AM and 9AM alternatively.

First of all, some updates for the coming weeks. We are planning to deploy Deri on polygon in next week, but will start with a transition period, during which the transaction fee will be higher than normal, but liquidity providing & mining will be the same as normal.

Also, we are working with Chainlink to roll their fastest oracle price feeds for BTCUSD & ETHUSD ever. Please stay tuned. Deri is going to eth layer2 very soon! OK, now I am going to start addressing questions.

Q1: I bet you know FINEMATICS, which is the best tech DEFI youtuber. Wouldn’t be great to engage him on twitter to review the protocol or to make a comparison on dex PERPS protocols?

A1: I myself don’t know FINEMATICS, but I will forward this to the marketing guys to take a look and see if there is space for cooperation. In terms of comparison, we did indeed, not just with PERPs but with other competitors too. It’s shared through several channels, including BSC’s. But we are open to all other marketing partners.

Q2: This project basically offers decentralized margin trading, right? Why are there so little pairs. And is there a marketing plan?

A2: I see it was already be answered by admin. but I would like to add a bit more. By “so little pairs” I assume you were referring to the trading symbols? We are on a new kind of smart contract for perpetual trading but with trading symbols that could added and removed. And we will roll this out as a “experimental” zone. With this pool, we will fastly roll out a large number of trading symbols (including very experimental ones like the iMEME index). We will decide whether to keep, to move to the “main pool”, or to remove the tested symbol. Please stay tuned for this.

Q3: Is there some marketing offensive planned? Adoption is extremely important. And polygon looks like a good move. Why are there few pairs only?

A3: I see this has also been answered but I would like to add a bit too. For the marketing part, we will soon roll out a program called broker mining to replace the current trading mining. With this program, people could earn DERI by referring others to trade on Deri. We will publish more details very soon.

Q4: Will it be 4 chains or polygon works for the eth pool?

A4: We will abandon eth layer1 (for some period at least) as the past experiences showed that there was little trading volume with the eth pool, largely due to the gas consumption. So basically the trading pool we will deploy on polygon will replace that on eth (the current BTCUSD/USDT one). That is, the liquidity mining will stop on this pool by the time we roll the polygon pool out, we will encourage LPs to move their liquidity to the new polygon pool. Note: before that, the liquidity mining on ETH will continue as usual. you can leave your liquidity there and just wait for our notice for the migration.

Q5: When will it launch in polygon and what are the strategies to look for?

A5: We will start on next week but it kicks off as kind of “open beta” period, during which the transaction fee will be high. this will last for a couple of weeks and then the pool will enter the normal track. Part of the reason for this transition “open beta” period is testing our pool while waiting for the Chainlink to get their oracle ready.

Q6: What is iMEME?

A6: iMEME is the index futures for MEME index. Please refer to this doc regarding the index: https://docs.deri.finance/products/index/meme-index

Q7: My first consideration was about defi nft. What would it be the future of these “temporary nft’s”? Where could we deploy our nft position and make it work? I was actually thinking about a farming nft protocol which leverage the value of the nft in order to reward the provider and match the funding fees so the position could stay open long term with no funding fees losses.

A7: That is a very interesting idea but my honest answer is I don’t know yet.

I have been thinking about the other usage of our NFT too. Anybody else have thoughts on this idea please share.

Q8: Can you keep us up with the current development of the project. what is going on behind the scenes, and how is the team going. according to the Github there are not many activities going on. Cheers.

A8: We have been submitting changes to the smart contract repos on Github almost every day. But most of them are private repos and you don’t see them until we set them public. For example, you didn’t see our Deri V2 repo until the 2 auditors finished their audits and we made the repo public.

Q9: I am staking deri iMeme/Deri on BSC I am also staking USDT for Deri on ETH. DO I receive BOTH Deri rewards in the SAME pool? app.deri tells me, my Deri is on BSC. I of course receive the iMeme/Deri reward on BSC in app.deri. But the USDT/Deri reward should be on ETH, I cannot see where the rewards are received there? I only see ONE window showing me rewards DERI, not TWO (though I am staking TWO different tokens on two different blockchains).

A9: This part of DERI mining is a bit confusing. We might change that but for now DERI miners have to bear with it, I am afraid. All the DERI tokens you have mined (possibly from different chains) have been consolidated into one place so that you only need to claim once. It was designed so to save LP some gas, but obviously caused quite some confusions.

Q10: new competitor has arrived. LEVER, which shares some of DERI investors + bigger ones. Do you guys know how it works?

A10: I know this project and I even helped some of the investors do due diligence the project. it’s not a direct competitor though. What they are doing is margin trading (help you borrow some cash to buy spot and hold spot), instead of derivatives. While there are some common features between margin spot trading and derivatives, they are essentially different.

Q11: What is the point on burning DERI and recycle them. and put them again in the loop. I would really like to understand that. I mean the only reason you would burn DERI is to take them out from the market, reduce the supply in order to have a possible appreciation of the token based on the scarcity of it.

A11: Putting them again in the loop will only affect the long-term supply. In terms of reducing the current supply it’s the same. the part of DERI tokens bought and “burned” are indeed taken out from the circulation and would impact the price the same way. So what’s the difference? Putting the “burned” DERI token for LP to mine would extend the mining time. Let’s say every week 1M DERI get mined (and assuming the mining rate doesn’t change), then it would take 600 weeks for people to mine out all the DERIs. However, if the bought & burned DERI put back into mining, then mining time will be longer than 600 weeks (it’s like some of the DERI will be mined again). Other than that, everything is the same.

Q12: Can you give us an idea of the amount of DERI burned yesterday., and if there is a burning plan. I mean is it going to be monthly? every 3 months? 6?

A12: Deri V2 just started, and the collected transaction fee has just started accumulating. we still need to wait a bit before this actually takes place.

Q13: What is mining PnL? Can it be negative?

A13: It’s the PnL of the pool, including transaction fee, funding fee, shared remaining value of liquidated positions, traders’ loss. However, while the first 3 are certainly positive, the traders’ loss is not a sure thing. So theoretically the PnL could be negative. But our research model shows that in long run this PnL would likely be positive.

Q14: Are you guys thinking to implement something like limit orders or similar things?

A14: First of all, since Deri’s trading is not via orderbook so technically there is a limit order by its definition. However, there could be something similar. That is, some trades automatically triggered when the price hits some levels. Yes, we are going to implement something like this. That said, it’s not on the top of our priority. As you probably can see, we got a full plate for the coming several months, with all the cool stuffs.

Q15: Any plan for the team to list DERI on more trading platforms? Like Uni, or any centralized exchanges like Binance?

A15: Yes! Our plan was to first cover the DEX world and then CEX. And now we have DERI on Sushiswap (Onsen) and Pancake (Syrup), the next exchange places to go would be the major centralized exchanges. That said, we won’t go to Uni though as we already have Sushi, which works pretty much the same as Uniswap but LPs earn SUSHI by providing liquidity. Whereas on Uniswap, you don’t earn any UNI for doing that. Please stay tuned for CEX listing. We are working on that, and something will happen soon.

Q16: How does the CAKE-LP SYRUP @ BSC LIQUIDITY MINING work exactly?

A16: You provide BUSD-DERI pair as liquidity on Pancake then you will have CLP tokens. Then you deposit the CLP tokens into the Syrup pool then you earn DERI+CAKE.

Q17: How Polygon is going to be implemented? Protocols deploys the eth pool on Polygon or you create polygon pools on the protocol? Since I hold my DERI and I don’t have intention on selling, would you consider let us hedge our COINS (which are in a permadowntrend) by trading with them on pairs that are easy to trade (btc/usd). Are you concerned about the collateralization of the DERI pool since it has sharp and constant depreciation?

A17: Polygon is just like another chain (think of it as another BSC) so we just deploy the smart contracts on it just the same way we did for BSC. As for trading with DERI on something, currently you can do that against the iMEME index. And later on, as I mentioned before, we will have a new kind of perpetual pool rolled out and a lot of trading symbols will be tested in this pool (BTCUSD could be included).

Q18: Can I connect Coinbase wallet to deri or is it only metamask?

A18: We have not tested coin base wallet yet. The wallets currently supported are listed here: https://docs.deri.finance/general-faq#which-wallets-are-supported