< Overview >


Deri is a decentralized derivative trading protocol. Deri enables the ability to hedge, to speculate, to arbitrage, all on chain. 


With Deri Protocol, trades are executed under AMM paradigm and positions are tokenized as highly composable NFTs. Having provided an on-chain mechanism to exchange risk exposures precisely and capital-efficiently, Deri Protocol aims to create an important block of the DeFi infrastructure.

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< History >


Deri Protocol was started by Dfactory Ltd., the issuing organization behind Deri Protocol, in February 2021. DeriProtocol is a smart contract based on Ethereum, Binance Smart Chain, Polygon Network and Huobi Ecological Chain. All transactions are carried out on the chain. 


At the same time, Deri has also developed a cross-chain bridge to support a multi-chain swap of its native token (DERI) between all three supported chains i.e ETH, BSC, Polygon, and Heco.


Deri Protocol is designed with all the defining features of DeFi and financial derivatives in its nature. In addition to cryptocurrency derivative trading, Deri will also trade real-world assets such as a Stock index like SP500, individual stocks, and commodities like gold and silver. The price of these real-world assets will be fed using oracle. 


Deri has done a strategic partnership with Chainlink for feeding off-chain real-world data to its on-chain network.

Deri Started its operation by launching a trading competition in four liquidity pools: BAC pool (ETH chain), USDT of the ETH chain, BSC’s BUSD pool, and Heco’s HUSD pool in March 2021. In addition to four liquidity pools, Deri also launched the bridge function on March 15 to support ETH<>BSC, ETH<>Heco, BSC<>Heco conversion and three-chain interoperability.

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< Investors >



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< ‘DERI’ token >



1/ DERI token will have following use cases.


{Governance}

The DERI community ownership and governance system are based on the Protocol token, DERI. In practice, this means the significant decision-making of the protocol and the token economics will be carried out by voting per DERI.


{Privilege}

DERI will act as a privilege token where people in the Deri ecosystem need to stake DERI to obtain some privileges during the Deri trading business.


2/ DERI grants users the following privileges.


{Liquidator qualification} 

With Deri Protocol, position liquidation is decentralized and open to qualified users. Since liquidation is riskless profitable, while we encourage anybody to participate in liquidation, for some of the trading pools we require participants to stake DERI in the liquidator qualification pool and users' staking amount has to be no less than the average level.


{VIP transaction fee rate}

going forward, a rule of differentiated transaction fees will be introduced per traders' DERI staking in a specific pool. In the future, as the Deri business activities grow, users will be granted a series of privileges associated with different scenarios.


3/ DERI tokenomics is as follows.


The DERI token will have a total supply of 1 Billion, 60% of which will be minted through liquidity mining while the rest will be reserved to the foundation, investors, and team. The non-mining part will be locked in a vesting plan and released linearly over 2 years with the following allocations:

  • 14% Foundation
  • 26% Team
  • 60% Mining

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 < Technology > 



Deri Protocol is a decentralized protocol for users to exchange risk exposures precisely and capital-efficiently. Deri Protocol is the DeFi way to trade derivatives: to hedge risk, to speculate or to arbitrage, all on-chain. This is achieved by the Automatic Market Maker (AMM) mechanism: liquidity pools playing the roles of counterparties for traders. That is, the liquidity pools are standing by to always take the opposite side of traders’ derivative positions.


This is similar to how the AMM-based decentralized exchanges, e.g. Uniswap, accommodate the spot trading demands of traders. The only difference is in the respective trading natures of spot exchanges and derivative trading. The former is an exchange between token X and token Y. For such a business, a standing-by counterparty’s job is to simultaneously hold a pair of reserves, one of X and the other of Y, and to swap X for Y (or vice versa) upon a trader’s request. Whereas in the case of derivative trading, a standing-by counterparty’s job is to always enter the opposite side when a trader is establishing some derivative position. For example, it is to enter the short position with the same volume when a trader is establishing a long position of futures or options contract. In this regard, Deri is playing the same role in the derivative trading business as that of Uniswap in the spot exchange business.


{Funding Rate}

Being the passive counterparty against all the traders, the liquidity pool bears a market risk for the non-zero net position it holds. To induce an equilibrium state (net position = 0), a funding rate mechanism is adopted. Specifically, between the long and short positions, the majority side pays the minority side a funding fee proportional to the net position.


{Derivative Types} 

Deri Protocol supports two types of derivatives: perpetual futures and everlasting options. A simple AMM is adopted for perpetual futures, for which the trades are executed at the newest oracle prices. Whereas for everlasting options an advanced AMM (i.e. PMM) model is adopted to determine the price and execute trades.


{Multiple Base Tokens for Margin and Liquidity Providing} 

For perpetual futures, Deri Protocol supports multiple base tokens. This means the following: 1) traders could choose one or more from the supported base tokens to post as margin; 2) liquidity providers could choose one or more from the supported base tokens to provide as liquidity.


{Everlasting Option Pricing} 

The PMM trading paradigm needs an “oracle price” for its price discovery. For everlasting options, this is the option price, which cannot be read from any existing pricing source. Instead, our PMM is fed by a pricer implementing the analytical price formula (https://github.com/deri-finance/whitepaper/blob/master/Pricing_Continuously_Funded_Everlasting_Options.pdf)that we proved for continuously funded everlasting options.

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{Summary}

❓DeriProtocol is a DEX derivatives trading platform that offers BSC-based perpetual futures and options(No KYC required)


👀Binance Smart Chain (BSC) has already invested in Deriprotocol (DERI) through a $1 billion ecosystem growth fund


👀Famous Messari reports that Deriprotocol is designed to essentially include all the defining features of DeFi and derivatives


📌 Ecosystem tokens(DERI) are used for decision voting as well as staking


📌 Although it is not well known in Korea, it will be the second dydx, so futures traders must be interested in it right now!!

 *In particular, it’s specialized in options, so option traders should use it!


🔗Deri Protocal : https://deri.io/