Genesis
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Trading [Guide]
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Mining [Guide]
How it works
Governance
Library
DEVELOPERS
Getting Started
Welcome to the official documentation page of Deri Protocol
What is Deri Protocol?
Deri, your option, your future!
βDeri Protocol 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.
Since its launch, Deri Protocol has gone through two major version iterations and has been supporting three major derivative types: Perpetual futures, Everlasting Options and Power Perpetuals. As of today, it has been deployed on multiple blockchain networks to serve tradersβ hedging and speculating demands and processed a total trading volume of over 20 billion USD. Statistics show that Deri Protocol has become one of the most used DeFi derivative protocols per trading volume.
What makes Deri Protocol so special?
As the solution to decentralized derivative exchange, Deri Protocol is designed with all the defining features of DeFi and financial derivatives in its nature
- Real DeFi: Deri Protocol is a group of smart contracts deployed on the Ethereum blockchain, where the exchange of risk exposures takes place completely on-chain.
- Real derivative: The PnLβs of the usersβ positions are calculated with mark price updated by oracle, which ensures precision; positions are maintained by a margin, which provides built-in leverage.
- Composability: Positions are tokenized as non-fungible tokens (NFT), which can be held, transferred or imported into any other DeFi projects for their own financial purposes (as blocks in their own βlego gameβ).
- Universality: One trading pool of Deri V3 can simultaneously support different funding-fee-based perpetual derivatives! Consequently, the trading pools do not have to be organized by derivative types. Instead, liquidity could be organized in ways better serving the trading demands.
- External Custody: The user capital, upon deposit, will be stored into a money market protocol, which are proven by time and scale. Liquidity Provider and Traders earn additionally yield - interest and also the protocol's liquidity mining rewards. (v3 pools)
- Dynamic mixed margin: Deri Protocol implements a new margin system, which accepts multiple base tokens at the same time! With such a system, trader can choose one or more from the supported range of base tokens to post a margin.
- Dynamic liquidity providing: Allows liquidity providers to choose one or more from the supported range of base tokens to provide liquidity. Also just like the margin value, the provided liquidity provided is dynamic too.
- Multiple trading symbols in one pool: Multiple trading symbols can be traded in one pool. This is to further enhance the capital efficiency, since different symbols are sharing the same liquidity hub.
- Simplicity: Deri protocol adopts an extremely simple trading process.
- Openness: anybody can launch a pool with any base token (but usually with a stablecoin, e.g. USDT or DAI). That is, the protocol does not enforce any specific βin-house chipβ.
- Intercompatibility: The Deri Token is intercompatible and supports three different Blockchains through our unique Cross-Chain Deri Bridge. (Ethereum, Binance Smart Chain, and Huobi Eco Chain). Deri is also supported on Polygon, a 2nd layer blockchain scalability solution for ETH.
With the introduction of βexternal custodyβ, Deri Protocol V3 supports multiple base tokens with substantially higher scalability and capital efficiency. Also, the DPMM of Deri V3 universally supports the funding-fee-based perpetual derivatives. Consequently, it can more flexibly organize liquidity for derivative trading across different types. Derivative innovations are thus made much easier under the v3 framework.
Deri Protocol V3 is a defining project of DeFi 2.0 that will bring the βlego gameplayβ of DeFi projects to a new level.
Last but not least, Deri's Everlasting Options is very first, not only in DeFi, not even only in the crypto world, but also in the whole financial world!
Key Roles
Our ecosystem is an entity made up of a variety of essential contributors and Key Roles, each performing an important task.
- 1.Liquidity Providers Liquidity providers provide liquidity to the pools to gain transaction fees, funding fees and DERI awards, etc., and are therefore playing the counterparty of the traders.
- 2.Traders These are the end-users of the Deri Protocol, i.e. those who use Deri Protocol to trade derivatives.
- 3.Arbitragers Arbitragers are a special type of trader, which are induced by funding fee arbitrage to balance the two sides of long and short positions.
- 4.Position liquidators When a position is breaching the liquidation line, a liquidator can pay the gas to liquidate the position and share part of the positionβs remaining margin as an award.
What is a derivative in finance?
A derivative is a contract that derives its value from the performance of an underlying entity, also called underlying, which can be an asset, an index or an interest rate. Investors/traders typically use derivatives for 3 reasons: to hedge, to increase leverage, or to speculate on an asset's movement
Supported Blockchains
Deri Protocol runs completely on-chain and does not require any registration as on centralized exchanges. To trade on Deri Protocol users require a non-custodial wallet located on the following Blockchains:
- BNB Chain
- Arbitrum
- Polygon
- Ethereum (currently inactive)
- Huobi ECO Chain (Heco) (currently inactive)
Last modified 2mo ago