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Welcome to the official documentation page of Deri Protocol
Deri, your option, your future!
Deri 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. Perpetual Futures
Gamma Swap (coming soon)
As the solution to decentralized derivative exchange, Deri Protocol is designed with all the defining features of DeFi and financial derivatives in its nature
- Flexibility of Network: Deri Protocol excels in providing traders with access to a wide range of blockchain networks. Traders can choose their preferred blockchain and enjoy a consistent trading experience, enabling them to focus on executing trades and staying ahead of the curve.
- Consolidated Liquidity for Enhanced Trading: By pooling liquidity from all supported networks, Deri Protocol ensures that traders have access to deeper and more robust markets. This consolidation reduces fragmentation and sippage, enabling traders to execute orders with greater efficiency and liquidity across multiple networks.
- Faster Execution and Reduced Gas Costs: Deri Protocol employs a novel approach to enhance trading speed and reduce gas costs. By executing the main logic on Deri's Layer 3 infrastructure, the protocol significantly improves transaction processing times. Traders benefit from faster order execution and trade settlements, as well as reduced gas fees.
- Real derivative: The PnL’s of the users’ positions are calculated with mark price updated by oracle, which ensures precision; positions are maintained by a margin, which provides built-in leverage.
- 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.
- Dynamic liquidity providing: Allows liquidity providers to choose one or more from the supported range of base tokens to provide liquidity.
- 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 “lego game”).
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 position’s 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