In the current derivatives trading market, the main bottleneck of CeFi is the transparency of data, the security of assets, and the subjective evil of the exchange. Starting from the bottleneck of CeFi, the main problem in the current market is to solve the decentralized derivatives project The work ahead.
Derify is a decentralized derivatives project. Compared with similar projects in the market, it solves some problems that the current industry is facing, such as price manipulation, insufficient liquidity, etc. In addition, it is more friendly to novice traders, and users can hold coins for a long time without worrying about the loss of funds and earn profits through mining.
The following is a transcript of the community conversation:
The following is a transcript of the community conversation:: Could you give us a brief introduction to Derify?
Mario ：Derify is a decentralized derivatives project. It is a set of smart contracts for digital asset derivatives transactions. Traders can conduct derivatives (perpetual futures, options, indices, etc.) on Derify Exchange and any on-chain exchange that uses the Derify protocol trade. In addition, as you can see, Derify has designed an original position mining mechanism. Traders can always earn mining income as long as they hold positions. Derify also has multiple risk control mechanisms to ensure the stability of the system.
: What industry-specific problems did Derify discover and solve?
Mario ：As far as the field of perpetual futures and contract trading is concerned, the main problem of centralized exchanges is that information is not transparent, and there is the possibility of price manipulation and internal transactions; in addition, the profits of exchanges belong to the exchange operators, the fundamentals of exchanges and users. Interests are conflicting.
As far as decentralized exchanges are concerned, the first is that projects using the order book model will rely on the services of third-party market makers, and there is room for liquidity manipulation; the second is that projects using the AMM-like model have insufficient liquidity. The risk of excessive price fluctuations usually cannot support price limit orders; the third is the limited transaction performance on the chain, which affects user experience and the conventional funding fee model may not be able to control the risk of decentralized projects; the fourth is the liquidity pool With the lock-up mining mechanism, the LP pool has a high risk, and the liquidity provider may lose all the principal.
: Can you introduce the principle and features of Derify?
Mario ：Derify has quite a few innovative mechanisms. In view of the characteristics of derivatives trading, Derify protocol has created a hedged automated market making mechanism and position mining rules.
Hedging market making is an improved version of the AMM model, which uses oracle machines to passively feed prices, and its core is to balance long and short positions rather than discovering prices.
Position mining is a liquidity incentive method adapted to hAMM, which directly motivates liquidity providers, because in Derifys contract transaction model, holding positions is equivalent to providing liquidity.
The characteristics of Derify are that there is no funding fee, and long-term positions are risk-free; there is no slippage, and what you see is what you get; no market maker is required, and no third-party market maker services are required; positions can be mined, even if the original position In the long run, profits can still be realized in the long run; two-way position mining is possible, and the risk will be much smaller than traditional LP lock-up mining.
: Can you tell us which investment institutions participated in Derifys early investment?
Mario ：MW Partners, Portico Ventures, R8 Block Capital and other institutions invested in our angel round.
: Can you introduce your core team members and their background?
Mario ：Derifys core team includes experienced quantitative traders, blockchain engineers and professional service personnel in related fields.
Team members have provided more than five years of experience in quantitative trading and market maker services in the blockchain industry. We are an important market maker for many centralized exchanges, managing assets of thousands of bitcoins and providing liquidity for many different projects. The team has mature experience in blockchain derivatives and transactions.
Our developer team adopts a decentralized office approach, distributed in Europe, China and Singapore.
: Can you share the achievements and future plans with you?
Mario ：Derify has completed the Alpha test, and the Beta test version was launched on the Ethereum Rinkeby testnet and opened for testing. Derify launched the BSC testnet in January 2022 to provide a better testing experience.
The IDO of the project is from 20:00 on March 28, 2022 to 20:00 on March 30, 2022, Beijing time. After that, major DEXs will be launched on April 1, 2022 at 8:00 Beijing time.
The official version of the project is expected to be launched in the second quarter of this year, in May and June.
You can visit the project website for more information:https://derify.finance/。
: Compared with similar projects, what are the advantages of Derify?
Mario ：Compared with most derivatives trading projects on the market, Derifys user experience is more friendly to low-frequency trading and novice users, without worrying about the loss of capital fees, long-term currency holding and mining income. In addition, Derify is a truly decentralized project. Liquidity is provided by users, rewards are obtained by users, and exchange profits are completely shared by currency holders.
If you compare them one by one, compared with projects using the order book model, we do not rely on third-party market makers, and there is no slippage. Compared with projects using the AMM-like model, we can implement limit orders and will not be out of the line Price fluctuations due to illiquidity.
: Can you tell us about strategies for attracting new users, incentives and benefits for traders and investors to hold $DRF tokens long term?
Mario ：Derify adopts a completely decentralized operating mechanism. The work of publicity and attracting new users is done by brokers. Anyone can become a broker and receive corresponding broker rewards. For example, I am the founding broker of the project.
Participating in Derifys test network, IDO and project construction will have airdrop activities, and the specific distribution rules have not yet been determined.
After the official version is launched, a better and fairer trading experience and high returns from position mining will attract general traders, and the arbitrage opportunities between exchanges will attract professional traders.
For all those who hold the governance token DRF, first of all, pledge DRF to obtain eDRF tokens to participate in governance voting, and secondly, all profits obtained by the smart contract will stay in the contract and be used to repurchase DRF tokens. Due to the long-term trading business The profit is very high, so all currency holders can share the exchange revenue.
: As a decentralized derivatives trading protocol, is there any risk when users use Derify? How do we need to avoid these risks?
Mario ：Like all other derivatives trading agreements, users need to understand the basic nature of leverage and margin trading before trading, and control the risk of positions.
secondary title
Community interaction
Community question 1: What are the differences between Derify and dYdX, the leader of the derivatives track? Will it seize more users in those ways?
Mario ：The difference between Derify and dYdX is quite big, because dYdX is still in the traditional order book mode, but only puts the data originally stored in the exchange server on ZK, which is similar to the traditional centralized exchange as a whole. The original problem will still exist. For example, although the quotation cannot be cheated, the liquidity itself is opaque, and the price can still be manipulated by manipulating the liquidity.
I feel that as a trading product, its own safety and experience are the most important. Secondly, Derify’s future holding mining income may be relatively high, which once exceeded 2000% in the previous test network.
Community question 2: What tokens does Derify currently support? What are the main considerations for token expansion later?
Mario ：The test network should only have BTC/USD and ETH/USD trading pairs, because Derify itself is similar to the index contract trading market, so as long as there are fair oracles and enough hedging markets, theoretically any currency can be used for perpetual futures Trade on Derify.
Community question 3: The trading depth of the derivatives market is a big problem. How do you motivate users?
Mario ：General projects use LP lock-up mining to motivate liquidity providers, and Derify is position-based mining, so that firstly, leverage mining can be added to improve capital utilization, and secondly, position-based mining can achieve risk-free mining through two-way holding positions, which will be more efficient than general Lock mining is safer.
Community question 4: Can you introduce token economics?
Mario ：Can refer tohttps://docs.derify.finance/v/cn/whitepaper/tokenomics/drf-token
Community question 5: How to become an economic businessman, is there any requirement for the amount of funds?
Mario ：As long as you burn eDRF tokens, you can become a broker, and eDRF tokens can be obtained by staking DRF (but you don’t have to pledge DRF tokens to become a broker, you can also buy eDRF directly).
Community question 6: Is there currently a DAO organization, and how will it be implemented?
Mario ：There is no DAO at present, and it may be dominated by Broker in the future, because Broker generally holds DRF tokens, and DAO resolutions are mainly produced by using eDRF voting.
Community question 7: Will there be failures under extreme market conditions? Are there controls?
Mario ：Extreme cases may result in project losses, but failures are unlikely. Because Derify itself calculates transactions through the Chainlink oracle machine, if an extreme market occurs on an exchange, as long as the oracle machine does not fail, Derify will always trade at a fair index price. However, in such extreme cases, such as someone coming to Derify for arbitrage, it may cause the exchange to lose money.
Community question 8: What is two-way mining?
Mario ：Because position mining means holding a position (regardless of the direction) is considered mining, then two-way mining is to open a set of hedging positions, so that in the long run you will never lose money (or make money) due to price fluctuations ), then the income from position mining is equivalent to your net income.
