On Friday, March 18th, we had a Telegram AMA with Deri’s co-founder and CEO, 0xAlpha. Different from previous ones, this AMA has innovation. The AMA can be called as “ Free Talk of Deri’s Products”. The free & open discussion & communication of Deri products with our CEO is the theme of the AMA. Honest opinions & suggestions raised by Deri community are substantially supported for Deri improvement.
The AMA Entrance: https://t.me/DeriProtocol
Let’s watch the detailed & complete AMA recap below:
This time we do have a specific topic additional to the regular questions: we would like to focus more on the products!
Before I get into that, let me first quickly debrief about the updates.
On March 14th (the past Monday), our Power perpetuals, mBTC², mETH², went online! Like before, you can trade them with 18 base tokens: $BUSD $USDC $USDT $XVS $BNB $BTCB $ETH $LTC $SXP $XRP $DOT $LINK $DAI $ADA $CAKE $TUSD $TRX $MATIC
Additionally, In order to let beginners to try & experience the new product at no cost, Powers testnet is live,too! Start demo trading to get known & understand & have a command of powers!
All right, about today’s AMA! It has a special topic: Free Talk of Deri’s products. We expect your opinions on Deri’s futures & options & power perps. Hope you the community members can freely raise your questions & ideas here! We want sincere communication for the improvement of Deri Protocol.
Let me start with the question already raised.
Q1: Hi, I have a question about power perps’s profit & loss graph. I know well about power perps long. But I do not know well about power perps short. If I short power perps, which one is proper? green or blue graph?
A1: The blue curve is correct.
The concepts of LONG and SHORT are universal for any derivatives: a SHORT position is the opposite of a LONG position.
Therefore, the blue curve is correct as it is the negative reflection of the red curve.
Another way of thinking about this: Just take a look at how the curve of y=-x² looks like.
Q2: Well, Maybe I’d like to hear 0xAlpha’s opinion about the current valuation. If we compare Deri to other option solutions (source: https://www.coingecko.com/en/categories/decentralized-options) It ranks to bottom end. Is there a meaningful reason for this or is it just an imbalance? I.e What makes hegic/ribbon/dopex “worth”(in paper) so much more.
A2: Well, I am afraid I don’t (neither am I allowed to) have specific comments on the token price.
But I guess the real question is, you can try out different products to make your own judgment regarding whether Deri is undervalued or not.
PS: I do want to point out that some of the projects you mentioned here belong to the so-called “DOV” sector, which is not the same thing as derivative protocols for option trading (even though it’s option-related). DOV is a kind of structural products.
Q3: Another thing, you guys let people use different tokens as collateral to trade, which is great. why you never engaged DOT community , ADA community ,LINK community , LTC community to invite them on the platform to trade with their bags?
A3: I guess that’s a suggestion rather than a question? I think you have a very good point, which I agree with. It’s something we could have done better. So thanks for pointing this out. The operation team will definitely need to check out how to promote in those communities that you mentioned.
Meanwhile, this is also something that you guys can help with, isn’t it? Please help us spread this out to the DOT/ADA/LINK/LTC communities: people can trade derivatives with DOT/ADA/LINK/LTC as collateral.
Q4: Future & Option Question: Some limitations when I join the testnet is that when I start placing orders, it takes quite a long time to confirm the block, which causes me to lose my initial position because of constant volatility. Deri has a way to fix this?
(White brick line below that I marked is the place I want to put it. After confirming the block, it oscillated with the position I marked above)
A4: First of all, that’s one constraint about DeFi projects (unless it’s a fake DeFi, like dydx), we are not able to decide how fast your transactions are confirmed. Therefore, you are not recommended to do high-frequency trading on Deri Protocol (or on any DeFi trading protocol). In your particular example, if the price shift from 2016.50 to 2017.75 (which is a 0.06% change!) is something you cannot bear with, that means your trading style is sort of too high-frequency for DeFi protocol to accommodate. Then I am sorry there is not too much that we can do about this at the moment.
That being said, the Binance testnet is slower than the mainnet. Your experience would be somewhat better on mainnet, but still not good for high-frequency trading.
In the future, we will deploy on fast networks so that it will improve on the confirmation speed.
Q5: Experience: Wallet connection on phone is worse than on PC/Laptop.
A5: That should be a network issue. Is your wallet on phone using the same network as that on PC?
Q6: Future & Option Question: Why leverage is limited to 12.5x ? why not 30x-50x?
A6: While we do want provide higher leverages, the leverage is limited by how fast the trading infrastructure can respond to price fluctuation. On blockchain, unfortunately this cannot be as fast as on centralized exchanges. So it would be difficult for us to provide leverages like 30x-50x. Or put it in another way, if we just provide 30x-50x leverage anyway, it would put a huge risk on the LPs.
Q7: Why does no one use Deri protocol? Is it because of BNB chain? The product is great but somehow there are hardly any traders except for the big institutes (daytrading)
A7: Well, first of all, there are people using Deri protocol. we have a decent trading volume.
But your real question is why the trading volume is not larger than the current level (while it should).
we are doing promotions to attract more to come to trade. This will be one rolled out next week. please stay tuned.
As for the network issue that you mentioned, Deri Protocol will be deployed on other networks too. We are working on that.
Q8: What is the value that the Deri project brings to humanity under the risk of an economic crisis and the influence of Covid-19 pandemic as now? What challenges are Deri team facing?
A8: Deri Protocol’s mission is to facilitate people to trade derivatives in a decentralized way. That is part of the DeFi infrastructure, which is the foundation of a more open, democratic and free world. In that sense, we are part of the construction of a future world that is more decentralized, open, democratic. Together we are building freedom! I believe that adds a huge value to humanity.
A9: At the moment , where you are focusing right now ? building and developing product or getting customers and users, or partnerships? Could you share it?
Q9: While we are doing both, more focus is put on the latter: getting customers and users. after Deri V3 went online, we will be not as aggressive as before in terms of upgrading products, as we believe Deri V3 is good enough for the current stage (which does not mean we stopped improving it). for the next several months, we will more focus on bring more trading volume to Deri.
Also we will do more on the community governance, as you can see we recently rolled out a lot on this dimension too.
Q10: The product is by far the best available in the derivatives space when it comes to DEX derivatives, but the UX, speed and smoothness of DyDx is just another level. What plans does Deri protocol have to finally establish itself in the market and secure market share?
A10: Regarding UX, could you be a bit more specific? This could help us improve it. Your input would be very much appreciated.
Regarding speed and smoothness, there are two parts:
1. The part not involving blockchain confirmation (e.g. webpage loading), we are working on accelerating it;
2. The part involving blockchain confirmation (e.g. transaction confirmation), that is determined by the blockchain.
While we will deploy the protocol on faster networks, it might not be able to process as fast as dydx, which is not a real DeFi.
You would not expect the confirmation on Uniswap or PancakeSwap to be as fast as in Binance, right? then it’s same thing in terms of speed for Deri VS dydx, the mechanism of dydx is really like binance (everything takes place on their own AWS server). (They said they were gonna change to a “fully decentralized” way, on which I am not quite positive.)
With all the above being said, there are lot of things on which we need to do better, e.g. marketing, bring more people to trade on Deri, etc. We will further optimize our operation on these dimensions. Meanwhile, please shoot us whatever suggestions that you have. This is not something we can do alone. Your participating is essential!
Q11: The current UI feels like a dark mode, light mode planned (just for the trading UI)? I know that Forex usually uses black or dark colour, but just a shoutout from my side.
A11: That is an interesting point. In fact, not just Forex, but the whole financial industry seems to prefer dark mode. So the choice of dark color theme is more like following the tradition of financial industry. That being said, you raised an interesting point. Could people in the community share more of your opinions regarding the color theme?
Meanwhile, I will have our UI designer to review this.
Personally, I am open to other color theme.
We will think about this. If there are enough concerns, we might hold a poll for this later.
Q12: What do you think when doing marketing AMA to large KOL groups, I think this is a good idea to attract more users.
A12: We did quite some of that before. it didn’t seem to be quite effective as I recall.
Per my experience, a more effective AMA approach is the ones in our partners’ communities (as a project team is usually a real KOL within their community). And we will continue to do that.
That being said, if you know of some KOLs whose communities are really good for AMAs, please do recommend or make the introductions.
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.