Deri Protocol Docs
HomeMiningFuturesOptions
  • Genesis
    • Getting Started
  • 📈Trading [Guide]
    • Deri Lite
      • Perpetual Futures
      • Everlasting Options
      • Power Perpetuals
    • Deri Pro
      • Perpetual Futures
      • Everlasting Options
      • Power Perpetuals
      • Gamma Swap
    • Arbitrage
  • đŸ“ļMining [Guide]
    • AMM Liquidity Mining
    • DERI Liquidity Mining
  • How it works
    • Architecture
    • DPMM (Proactive Market Making)
    • Oracle
    • External Custody
    • Funding Fee
    • Leverage
    • Margin Requirement
    • Open Interest
    • Liquidation
    • Mining (AMM Liquidity Mining)
    • Limit Orders and Stop Orders
  • Governance
    • Deri Improvement Proposal (DIP)
  • Library
    • Derivative Products
    • Whitepaper
    • Code Audits
    • Tokenomics
    • List of Smart Contracts
    • Referral Program
    • Social Links & Media
    • Bridge
    • Trade on Demo Testnet
    • Academy
      • General
        • What are derivatives in DeFi?
        • What are the 3 biggest mistakes of trading derivatives?
        • Four tips for your trading
      • Perpetual Futures
        • General Intro about Perpetual Futures
        • How to Arbitrage
      • 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)
      • Gamma Swap
        • Introducing Gamma Swap
        • Gamma Swap by Deri Protocol
        • Hedging Impermanent Loss with Gamma Swap
        • A New Transaction Fee Algorithm for Gamma Swap
    • Glossary
    • â„šī¸FAQs
      • Trading FAQ
        • Perpetual Futures
        • Everlasting Options
      • Mining FAQ
      • Mini-App FAQ
  • DEVELOPERS
    • How to find the Token ID associated with your account
    • Ideas to build
  • Support
    • Submit a question
    • Bug Report & Suggestions
    • Brand Asset
Powered by GitBook
On this page

Was this helpful?

  1. Library

Derivative Products

Deri Protocol's derivative products

PreviousDeri Improvement Proposal (DIP)NextWhitepaper

Last updated 1 year ago

Was this helpful?

For the time being, Deri Protocol offers three major products: Perpetual Futures, Everlasting Options and Power Perpetuals. Perpetual futures, Everlasting options ans Power Perpetuals are similar in that they are both funding fee-based perpetual derivatives. With these derivatives, the user has to pay a funding fee to maintain the position, unlike regular futures which have an expiry date.

The primary difference between perpetual futures and everlasting options is the payoff function attached to the derivative. Perpetual futures are a linear payoff function. If we take Bitcoin as example, if bitcoin (BTC) rises, the holder of the derivative would actually make money, and if it drops, the holder would lose money.

In comparison, the payoff function for everlasting options is non-linear. To use the same example for a call option: If the bitcoin rises, the holders make money, and they lose nothing if it decreases. For maintaining this less risky position, the user is generally charged a fee on a per-second basis.

Everlasting options which are implemented as a decentralized protocol are one of the groundbreaking & pioneering DeFi primitives. This is a new type of derivative that allows traders to have unprecedented never-before-seen long-term exposure without having to roll positions. This work is based on a theoretical paper by Dave White & Sam Bankman-Fried & the extension of the Deri Protocol team Read our Whitepapers to learn more about Deri Protocol's major products:

click here