Telegram AMA Recap on September 3rd

On Friday, September 3rd, we had a Telegram AMA. The following shows recap of the questions with 0xAlpha’s inspiring answers.

0xAlpha: It’s been a super exciting week. we have delivered what we promised, again and again! And we are gonna keep it that way.

Let me start this AMA with a question that I would like to ask you guys:

I am so proud of being part of the Deri family. Are you proud of being part of the Deri family too?

There have been a number of milestones for the past weeks, among which the most significant one is our Everlasting Options, the first on this planet.

That’s right! It’s not just the first in DeFi, or the first in Crypot, but the very first in the financial history of this planet!

OK, let me start to address the questions now

Q1: Would like to ask how the mark price of the perpetual options is determined

A1: Great question.

The mark price is given by DPMM (an adapted version of PMM). DPMM takes a theoretical price as input and calculate a price shift to add on top of the theoretical price to get the final mark price. The price shift (or slippage) is associated with the net position. And the theoretical price is calculated by our pricer (which is also a smart contract so you can check out the code).

If you are interested, you can find the algorithm of the pricer from our whitepaper (https://github.com/deri-finance/whitepaper).

There is an article that is specific for the pricing too, “Pricing_Continuously_Funded_Everlasting_Options.pdf”. You can find it in the same github folder.

Q2: What is the difference between the BUSD pool “Option” and “Futures” in terms of risk?

A2: Their difference is associated with the risk profiles of options and futures. In short, for perpetual futures, the pool is always bearing the market risk for the net position. Whereas for, for everlasting options, the pool is bearing the market risk when it is short (i.e. when the “Total Net Position” is positive) and is possible to pay too much premium (more than its PnL) when it is long. That being said, for both situations, the risks are mitigated by the funding fee. Which is designed to induce the pool to revert to the equilibrium state by the arbitrage mechanism. This mechanism works similarly to both futures and options.

Q3: What’s the next goal?

A3: A lot of things on our TODO list haha…

In terms of product, we are bringing more cool stuffs into the reality. as I mentioned in a post on my twitter , we might see a Cambrian Explosion of perpetual derivatives. so a lot of things to do going forward.

In terms of community & operation, we are working on boosting the trading volume. While we are providing such great products, we would like people to use it. I would encourage you all participate in this too. Please tell your friends to come and trade on Deri.

Q4: May I know what is the total open interest for the protocol now. Would be great to the total positions open in the UI too!

A4: That’s a good one. Currently, only the total net position is displayed. the total Open Interest could be added too. I will forward this suggestion to the team.

Q5: It seemed to me that Deri is now trading on quickswap

A5: The thing is we already have 2 DEX to buy & sell DERI (Sushi & Pancake). Having too many places to trade DERI would lead to liquidity fragmentation. That being said, we would consider what the community needs. If there is a significant demand of trading DERI on quickswap, we would do it. Please discuss this topic within the community so that we can evaluate how great the demand is.

Q6: The website looks a bit cheap to me; is the project legit? any audits?

A6: We are working on the UI of the website. This will be upgraded soon. The links to the audit reports have already been provided.

Q7: Any thoughts on Arbitrum and moving over there if the ecosystem there matures, see a lot of perp protocols over there and it could bring up the comparable valuation and cater to a larger group of professional users based on ethereum chain

A7: I agree with you regarding the “community nature” of the different chains. But,

1. BSC is evolving too (it’s only 1 year old). so the “retail-oriented” nature might not be the case forever.

2. For the ETH L1-L2 ecosystem, we are on Polygon. As for Arbitrum, we are considering too.

3. Currently the most trader-oriented chain is Solana, which we are considering too.

As for larger group of pro users, I am talking to them. some of them are already working on engaging with the EO trading on Deri.

Q8: Is there any possibility to do another syrup pool on pancake? We would like to have other, I wouldnt like to sell my tokens

A8: The thing about Syrup is they changed their business model of the syrup farming. But now you have a very high APY of DERI for LPing in our Pancakeswap pair. As for other partnerships like the old Syrup, we are working on that too.

Q9: So the future of Deri pools is going to be polygon only?

A9: No. We are a multi-chain project and we would like to keep it that way. That being said, we are not going to the other end like Sushiswap does, i.e. deploying on every chain. We are only deploying on selective chains.

Q10: Hi! Just need a quick confirmation please — investments made in mining do NOT count towards the Dynamic Effective Balance do they?

A10: No sure if I got your question right. But the “Dynamic Effective Balance” has nothing to do with mining. “Dynamic Effective Balance” is the balance in your margin account, which is the collateral for you to do trades.

Q11: Hey guys. How can I find out the total volume furtures trading at Deri protocol?

A11: We will have a info page for that. Please stay tuned.

Q12: Is everlasting options only on bsc?

A12: Exactly currently we offer everlasting options only on BSC, but other Chains will surely follow. Currently we are doing the last-stage testing. we aim to roll out everlasting options on Polygon within a couple of weeks. please stay tuned.

All right. I guess that’s it for today’s AMA. we’ve been through some very productive and exciting weeks and we will keep it that way. Back to work now. Still got a lot on our pipeline.

Happy trading and mining! Bye guys!

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.

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Deri Protocol = (Perpetual Futures + Everlasting Options) x Decentralized.