On Friday, November 10th, we had a Telegram AMA. The following shows a recap of the questions with 0xAlpha’s answers.
We’ve delivered a lot since last AMA. Our Trade-to-Earn program has been super successful. Since its launch, our trading volume rocketed!
In case you don’t know yet, you can see the ranking of DEX from this CMC page: https://coinmarketcap.com/rankings/exchanges/dex/
All right. let me start to address the questions now.
Q1: I wonder what is the difference between MCB and DERi
A1: MCDex is a great DeFi derivative project too. In terms of product, one major difference is that Deri protocol supports both perpetual futures and everlasting options. For further differences, there are a few articles discussing this sector. You can easily find them by searching on Google.
Q2: Why don’t add to the stats page tot fee accrued
A2: Yes, we are gonna add that (and other stats) to the info site. we have a lot of things in our pipeline tho. So I will need to ask for you guys’ patience😄
Q3: I would like to raise a question regarding the rewards to LP, or if I am missing something:
So currently 80% of the transaction fee goes to LP. Additional some portion of mining DERI rewards would also be given to LP from DAO.
So what would be the difference for DIP2 since the reward goes to LP anyways: eg)
1. 80% TX Fee > LP
2. 20% TX fee > DAO > Emission to LP
A3: The second part (20% in your question, but already raised to 80%) does not go to LP. it would be used to buy & burn DERI tokens.
So DIP2 was really about how to divide the transaction fee income: what percentage goes to the LP and what percentage is used to buy & burn DERI.
But in the end of the day, the second part would benefit LP too (it has a positive effect on the APY), just indirectly.
Q4: hey，I want some bsc-testnet TUSD and TWETH ,how could I get them?
A4: You are an early bird of our testnet site, haha. It’s not officially rolled yet but is functionally ready to use. You are welcome to try it out. As for TUSD and TWETH, you can get it from this link: More » Faucet
Q5: What is equation for effective balance？
effective balance = original amount depositted
effective balance = original amount deposited + unrealized gain
effective balance = original amount deposited + unrealized gain/lost + acct funding accrued — transaction cost
or ) effective balance = original amount deposited + unrealized gain/lost — transaction cost
A5: This one is correct:
effective balance = original amount deposited + unrealized gain/lost + acct funding accrued-transaction cost
Q6: Where can I find the funding rate history for each perpetual swap?
A6: That’s good question. I will forward this to the dev team and see if there is a solution for displaying this info.
Q7: Is there in the near future a new listing coming?
A7: Sorry I am not sure about that. And you are not recommended to speculate on this. We encourage you to focus more on the development of our product.
Q8: Do we have unlimited supply?
A8: Guess you are talking about the DERI token. No, it’s capped by 1B. This is ensured in the smart contract code of the DERI token. You are welcome to check it out here:
let me add a bit more to this question. as a crypto native project, we generally follow the crypto spirit of “Don’t trust, Verify!”.
Even though I am very happy to answer your question by all means, for key info like this, I suggest you depend on checking out the code rather my words.
After all, there is a theoretical possibility that I could lie to you, but code cannot.
Q9: You get more deri from funding fee arbitrage or providing liquidity
A9: These are two very different activities. It all depends on how you play with it.
Q10: Thanks for the mining FAQ! I understand it now but why can’t you unify the mining user interface by only having Mining PnL!! Its simpler to understand for all liquidity providers, this shar system is to complex .
A10: This is really because the main zone and inno zone are a bit different in their mechanisms of base token pnl. Simply speaking, inno zone has only one base token so you can defined the simple term of Liquidity Share Value to measure the PnL. Whereas for main zone it has multiple base tokens, Liquidity Share Value cannot be defined so we can only show the PnL directly.
Q11: Team — is there an update on the roadmap on when the UI will be enhanced? I do some trading on dydx, but would prefer deri protocol, but the UI is a bit challenging for me.
A11: Totally understand your concern! Our new website is on the way! ETA is by the end of Nov. Please stay tuned!
Q12: Is Deri the only on-chain derivatives platform?
A12: There are some other on-chain platforms for derivatives too. But as far as I know, Deri is the only one supporting both futures and options and with the two fully functional (i.e. not an experimental one).
Q13: Why OPT mining APY much more higher than FUT?
A13: The two pools have their respective allocation of the DERI mining. If people put more liquidity into the FUT pool, it will decrease the APY then it might be lower than that of OPT.
Q14: I’m new here, but question — for the everylasting options, is the daily funding fee always equal to the mark price?
A14: No, not always.
the precise formula is: funding = mark-payoff.
For OTM options, payoff = 0, then funding = mark.
But for ITM options, payoff is not 0, then these two do not equal.
Please check out our whitepaper for furthur details.
Q15: 1) NEWS ABOUT SOLANA BRIDGE? HOW FAR ARE WE % WISE?
2) I SAW THE VOLUME INCREASING A LOT ALL OFF A SUDDEN WICH MEANS BIG FIRMS ARE ONBOARDED TO TRADE. HOW FAR ARE WE TO GET LIKE 500 MIL STEADY VOLUME A DAY IN YOUR OPINION, BASED ON AGREEMENTS WITH FIRMS THAT WE DON’T KNOW?
3) I POSTED YESTERDAY A PROPOSAL ABOUT THE ACCRUED FEES, I PAST IT
HERE TOO, KINDLY TELL ME WHAT YOU THINK ABOUT “Self owned liquidity. instead of burning DERI’s we could alternatively use it to add liquidity to the protocol. In this way we buy back Deri from the market and we have also rewards on the SELF OWNED LIQUIDITY pooled back in the protocol. We have differents benefit from it : the protocol steadily increases liquidity wich will be permanent in the pools (self owned liquidity — DAO owned liquidity) ,extra reduced DERI inflation (by pooling DERI and keeping rewards in the pool). Safer protocol : the self owned liquidity will ensure more safety to the protocol by having a permanently locked liquidity.this self owned liquidity could come from owning DERI or owning DERI-busd LP (wich I prefer)
5) is Perp NFt floor an ongoing thing or you guys abandoned the IDEA?
6) Is there any actual game perp related things going on or is it just a future things?
A15: 1) We are looking into solana, but the priority is lower than ethereum layer2 (Optimistic). Simply because Solana is not evm-compatible.
2) Yes, I knew quite a few institutional traders are currently trading on Deri, including some of our investors (they are trading firms themselves).
But there is no such binding terms for the institutional traders to trade on Deri as far as I know. They trade on Deri because they want to, not because they are required to. Any terms/agreements requiring somebody to trade on Deri is useless, in my opinion.
3) this would be something fundamentally different from the current mechanism. I will need to think thoroughly about it. will get back on this one after I give it some thoughts. Thanks for sharing the idea.
4) I will take a look at the Darwinia and see what we can do.
5) I would not say we have abandoned the NFT floor perp idea but currently it’s not on the top of the priority.
6) we have game related index futures in Inno Zone.
Q16: What about any projects or events upcoming that share with?
A16: There are a lot of thing on going. The most important one is our V3 under development. Please stay tuned for our updates.
Q17: Is there going to be any revision to the rewards methodology for the trading campaign? As of now, the DERI whales have a multipler coefficient that makes it hard to get good rewards
A17: Yes, the rules have been revised for Epoch 2. the issue that DERI whales have too big edge has been address. Put simply, the boosting factor of Epoch 2 will the be square root of the current one. With such a sublinear relationship, DERI whales will only have mild advantage.
Q18: Perpetual futures same function with binance futures?
A18: Not sure about what you referred to by “function”. if it means what financial purpose it serves, then yes, it serves the same financial purpose as any other “perpetual futures”, including the one on binance futures.
Q19: Just also wondering how would be the 1M incentive’s DERI be marked at. aka at what conversion rate per USD -> DERI, eg at 6pm HKT today or at time of claim
A19: yes, it will be marked in the first way you said. that is, the fixing time point will be the end of Epoch1, which is 10AM UTC (6PM HKT) today.
Q20: What is the initial plan for repurchase? Why has the investment amount not been announced?
A20: Buy & burn will start soon. Please pay attention to our announcement.
most of the investment agreements come with NDA terms, so we cannot disclose the amount.
please note that this is a common practice in this industry. you might see other projects disclose a total raising amount of some round, but they rarely disclose the amount of one speicific investment from a single investor.
Speaking of investors, we actually have a very high bar for accepting investments. (that is right, we don’t just accept anybody’s funding. we select investors!).
Two basic requirements for institutional investors to invest in DERI are:
1) you must have strategic added values to the ecosystem;
2) you must be willing hold your stake for long-term.
Q21: Is there a roadmap
All right, I guess that’s it for the questions.
Today is gonna be the last day of Trade-to-Earn epoch 1. Epoch 2 will kick off immediately at the end of Epoch 1 (10AM UTC today).
I want to remind you that addtional to the general reward for all participants, Epoch 2 will have special awards for top 10 traders ranked by scores and ranked by PnL. The 2 special awards will be in DERI and another top cryptocurrencies! (meaning you don’t just win DERI from this event!) What it will be? this will be disclosed in several hours!