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        • What are derivatives in DeFi?
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        • General Intro about Perpetual Futures
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      • Everlasting Options
        • Introducing EverLasting Options
        • Numerical Examples of Everlasting Option Pricing
      • Power Perpetuals
        • Introducing Power Perpetuals
        • Hedging Impermanent Loss with Power Perpetuals (1)
        • Hedging Impermanent Loss with Power Perpetuals (2)
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        • Introducing Gamma Swap
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        • Hedging Impermanent Loss with Gamma Swap
        • A New Transaction Fee Algorithm for Gamma Swap
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  • Overview
  • AAVE: The Money Market Protocol on Abitrum

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  1. How it works

External Custody

Overview

Deri Protocol adopts a money market protocol as "external custodian" to carry out the following functionalities:

  • Holds and secures user capital in one or several base tokens;

  • Calculates a total dynamic effective value of the user capital deposited.

AAVE: The Money Market Protocol on Abitrum

For the trading business to better scale, Deri Protocol adopts AAVE as the external custodian on Abitrum. AAVE does not just hold capital but also calculates its dynamic effective value.

The support of multiple base tokens is more systematical, as users can choose to deposit any token supported by AAVE, e.g. USDC, DAI, WBTC, ETH, LINK.

When users deposit several kinds of tokens, the real-time total dynamic effective value of the tokens is calculated by AAVE with some built-in functions.

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Last updated 1 year ago

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