Recap of Deri & Venus AMA on January 18th
On Tuesday, January 18th, we had a AMA with Venus Protocol in Venus’s Discord. The following shows a recap of the questions with 0xAlpha’s answers.
Venus Protocol Discord: https://discord.gg/jjN3sGxj5h
CrYpToLoGiC: Good Morning Everyone! Welcome and thank you to 0xAlpha, founder of Deri Protocol to our AMA.
0xAlpha: Good Morning Sir, CrYpToLoGiC. Good morning/evening, my friends from Venus!
Q1: Can you tell us a bit more about yourself and your project to the Venus community?
A1: Hello everyone. I’m 0xAlpha, Co-founder and CEO of Deri Protocol. Deri Protocol is the leading derivative trading protocol on Binance Smart Chain.
Quoting the formula from our website. Deri Protocol = (Perpetual Futures + Everlasting Options) X Decentralized. Deri Protocol is the DeFi way to trade derivatives: to hedge, to speculate, to arbitrage, all on-chain.
To provide higher capital efficiency, we just rolled out Deri Protocol V3 last week.
One thing special about Deri V3 is that it adopts Venus as the “External Custodian”. Almost all the tokens currently supported by Venus are automatically supported as base tokens of Deri Protocol to be added as liquidity or to be used as collateral.
You can find out more details in our website: https://deri.finance/
Q2: Excellent, Deri adopted Venus as external custodian, could you elaborate i.e. provide more information on this to our community? What does it represent for Venus?
A2: Sure. In Deri V3, We rolled out a new mechanism called “External Custody”. In particular, we chose Venus, the #1 money market protocol on BSC, to be the partnering protocol of our external custody. Under the hood, it means that the capital involved in Deri’s trading business is actually stored in Venus.
In the DeFi world, when it comes to dealing with liquidity, there are 2 roles: liquidity users and liquidity managers. From that perspective, Deri Protocol is a liquidity user. So the essence of this partnership is that Deri Protocol has Venus to manage the liquidity on its behalf.
In other words, this partnership is all about the division of jobs: leaving the role of liquidity managing to someone specializing in this job. We believe this is how liquidity will be dealt with in the future of DeFi: Projects like Venus manage liquidity, while projects like Deri use liquidity. So we are both working on what we are specialized in, respectively.
And we believe that is a defining feature of DeFi 2.0 and is also the trend for the future. The Venus-Deri partnership is going to be a proof-of-case and role model for the other projects to follow this approach.
Q3: Great! Now we get the significance of External Custody. What is the main significance for the Venus community?
A3: First of all, an immediate thing: this partnership would mean more TVL for Venus, as most of the Deri TVL becomes Venus TVL (At the starting stage, Deri are bringing tens of millions of TVL to Venus. And more are coming in the future).
Furthermore, a more profound impact would be that it is a new business model for Venus.
The way Deri leverages Venus’ existing infrastructure is actually a 2B business for Venus, in addition to its existing business model. That is, whenever there is some financial business involving users depositing capital, that capital could be held in Venus (instead of their own liquidity pool). The Venus-Deri partnership will be a proof-of-case for such a 2B business model. According to my chat with Brad, there are already some other projects interested in following this approach. That would position Venus in a core role of the whole DeFi ecosystem, and hence bring a lot of added value to the Venus protocol.
And one more thing, as I mentioned, almost all the tokens currently supported by Venus are automatically supported as base tokens of Deri Protocol to be added as liquidity or to be used as collateral. That includes XVS too! What does that mean? That means the XVS in your hand now has a new use-case: you can go to Deri to deposit your XVS as liquidity, or you can trade derivatives (futures and options) with XVS as collateral. (I think this is the first time that you can trade derivatives with XVS as collateral!)
Q4: As I see it, this is a win-win situation for both our communities. Can you tell us more about what this partnership brings to the Deri community as well?
A4: From Deri’s perspective, this partnership benefits both the liquidity providers and the traders. So, exactly as you said — win-win.
For liquidity providers, now when you provide liquidity to Deri Protocol, you have a large range of tokens for you to deposit, i.e. the 10+ accepted tokens on Venus. In particular, you can deposit XVS!
Here I welcome all XVS holders to LP on Deri!
Additionally, the LPs will receive both DERI Mining Rewards and XVS mining rewards, and lending interest yield on XVS, triple rewards in total.
Here is the step-by-step guide for liquidity providers: https://docs.deri.finance/mining/amm-liquidity-mining
For derivative traders, all tokens accepted by Venus can be used as margins for trading. For example, as mentioned, XVS holders can deposit XVS as margins to trade BTCUSD, ETH perpetual futures & everlasting options on Deri.
Additionally, traders will also receive XVS rewards, and the lending interest yield on XVS as extra rewards for depositing those funds in margin.
Here is another welcome: I welcome all XVS holders to trade derivatives on Deri!
Actually in a program we will kick off very soon, the early birds will get XVS-predeposited position tokens to start their derivative trading on Deri. Please stay tuned.
Check out how to trade on Deri Protocol Here: https://docs.deri.finance/trading/deposit-margin
Q5: Exciting! 0xAlpha, Can you give us a little hint on what’s coming in 2022? Is there somewhere we can see a roadmap for Deri Protocol?
A5: Yep, there is a roadmap
2022Q1: Launch of Deri V3, a revolutionary version of derivative dex, partnering with Venus in a defining partnership of DeFi 2.0; Also, we are currently researching the “funding-fee-based perpetual derivative family” (our existing perpetual futures and everlasting options being two instances) and are going to roll out more innovative derivatives with practical values.
2022Q2: We are promoting a more decentralized governance and add more value basis to the Deri token.
2022Q3: Further grow the Deri ecosystem: we are going to set up a Deri Ecosystem Fund to help build a bunch of other DeFi projects (e.g. structural products, risk management tools) based on Deri Protocol as their infrastructure.
2022Q4: We are going to roll out Deri Protocol V4 based on the cross-chain-function-calling technology.
Q6: Excellent. Thank you for sharing. I’m sure everyone is wondering, what is the Audit background of Deri?
A6: Deri Protocol V3 has been successfully audited by Peckshield. The audit report is here: https://github.com/peckshield/publications/blob/master/audit_reports/PeckShield-Audit-Report-DeriV3-1.0.pdf
And meanwhile we are conducting a bug bounty on ImmuneFi.
And one more relevant thing: one of the primary reasons for Deri to choose Venus as the partner is for security consideration. We must choose THE most reliable lending protocol on BSC. And that is Venus.
CrYpToLoGiC: Thanks a lot for your confidence. This is great to hear!
0xAlpha: my confidence is based on the fact that Venus is proved by time and scale.
Q7: Indeed! Where is $DERI traded? Where can we buy or trade your currency?
A7: Decentralized exchanges:
please check out the details: https://app.deri.finance/#/token
CrYpToLoGiC: Great! Thanks a lot 0xAlpha for your time today!
For anyone interested to know more about Deri, you can Visit Deri’s official social media’s accounts here:
Q8: Venus is an Official ‘’Bank/Custodian’’ for Deri yes.
A8: Just saw this. This is actually a very precise description of what's going on with the partnership.
Q9: What do you believe is the biggest problem in the perpetual future and everlasting options sector?
A9: Assuming your question is for perpetual futures and everlasting options of DeFi. Right now the biggest problem I think is that people are not that used to trade on DeFi yet. Most of them are still used to trade on CeFi exchanges. But they will learn and get used to DeFi gradually. And I believe this process will accelerate in the coming years.
Q10: Deri is using Venus liquidity so it means Venus suppliers profit on it?
A10: Were you referring to those who deposit on Venus? If yes, then the answer is not directly. Because Deri will also be a depositor. So borrowers will directly benefit from this partnership. However, since this partnership bring added value to Venus overall, so the depositors would benefit indirectly too.
Q11: What was the reason to choose Venus over other BSC lending protocols?
A11: As I mentioned: One of the primary reasons for Deri to choose Venus as the partner is for security consideration. We must choose THE most reliable lending protocol on BSC. And that is Venus, which is proved by time and scale.
Q12: Thanks for the AMA. I wonder what do you think about Web 3.0 & Metaverse . I think that DeFi is the basis of these two. Is there any possibility to orientate DERI & Venus to Metaverse & web 3.0 ? Maybe cooperation with Metaverse projects? Any future plan about it ?
A12: I agree with you and I think both Venus and Deri will be the infrastructure of web 3.0 and metaverse. We will do a lot for that!
Again, please stay tuned for the upcoming joint program by Deri and Venus: you can claim XVS-predeposited position tokens to start trading derivatives on Deri!
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.