Sunday, 27th of March 2022, at 12 PM UTC, we just successfully hosted our 68th #AMArathon with Derify Protocol (which was been going on for ±103 minutes), and represented by:
Mr. Constantin | Derify Protocol Core Team Member
Some of you might didn’t participate or on there for it, you can look back at how was our #AMArathon went FROM HERE to RIGHT HERE. We are up with the recap of our #AMArathon with Derify Protocol and we hope our audiences get a better understanding about Derify Protocol. Happy Reading!
🔹1st Segment: Project Introduction🔹
May you share something also about your background, and the reason why you decide to be the part of Derify Protocol?
Hi everyone, my name is Constantin, I’m the core team member of Derify protocol. Yeah, I’m of financial & legal background, worked for a hedge fund. I worked for Derify team before launching Derify project, we were providing crypto market making services.
Can you explain to us what the Derify Protocol is all about? What is your goal in building such a thing? What is the goal of Derify in this DeFi space?
Derify is a decentralized derivative DEX protocol. So it is a DEX, but everyone can also fork Derify contracts to create his own exchange. Derify’s goal is to allow people to trade derivatives fairly, safely and cost-effectively. We hope Derify can be an basic infrastructure for the DeFi space one day.
Can you pinpoint for us the key features that distinguish Derify Protocol from other same-kind-of-products? Why is it better? If we look at other DeFi protocols, what makes the Derify protocol different from others?
Comparing to similar projects – derivative DEX, famous projects like DYDX or Perp, Derify has two major advantages in technical designs.
First is the hAMM mechanism, which is an AMM variant that has no price discovery and using passive price feeds for calculation, it’s much fairer and safer than typical AMM variant which many derivative DEX are using. And second is the position mining, which is an efficient liquidity incentive option, which higher return and less risk. Derify has no cheating, manipulations or scamming issues like traditional CEXs, we also don’t have Funding Fees, slippage cost or impermanent loss, while providing a good experience and performance comparable to the best CEXs.
Derify use the variant of AMM which is hAMM (Hedged Automated Market Making) as the liquidity solution for contract calculation, right?
Yes, it’s called hAMM because it’s core principle is to balance long and short positions and hedge them, it’s specifically designed for derivative trading.
Traders can open long and short positions with same price, same leverage, same amount, but with opposite directions? And no slippage on that?
Yes, that’s a special feature on Derify, it allows you to do risk-free position mining. On other exchanges like Binance, you can hold two hedged positions too, but there’s no benefit of doing so, but on Derify it allows you to receive mining rewards.
What chain you used to build this protocol?
Derify was designed on Ethereum, but because of the delay of ETH 2.0 and its performance issue, we decide to launch on BSC first. We can easily migrate to any EVM-compatible chains. Derify also receive grants from Solana hackathon, so we’ll support Solana in the future.
Is there any testnet for us to see how the Derify Protocol platform will work in the full release later? What kind of benefit we can get from participate on it?
Yes, our beta testnet is currently live, it will last until our official product launch, presumably in May.
All participants of the testnet are able to share the airdrop prizepool, distribution criteria is not public yet. Testnet Link:
How about a trading fees, or is there any other fees?
The trading fees will be as low as 0.05%, the lowest among DEXs. Unfortunately we cannot offer zero trading fee service like some CEXs, because we need to cover gas fee of the smart contract operation.
About a margin on trading/ leverage, does Derify allow traders to use leverage? And how much multiplier traders can take?
Currently on testnet, the max trading leverage is 10x, but on mainnet, it’s likely 30x.
What will be the token on Derify ecosystem? What is the utility of it on the entire Derify Protocol ecosystem? In very near future, where we can grab some?
Our native token is called DRF.
DRF has 3 main usage:
- Profit Sharing: ALL profits of Derify will be used to buy back and burn DRF token on the market, thus shared by all DRF holders.
- Governance: Stake DRF will generate eDRF token, the governance vote token that is needed when you are voting for a proposal.
- Privilege: You need to burn eDRF token to purchase the Broker privilege, just like you need to stake DRF to maintain your Broker status (but not a must. For example, you can buy eDRF).
How about the total supply of DRF token? Or maybe you can share to us the tokenomic chart of it?
The total supply is 100 million. A small portion has been sold on private sale. Many of them will be mined through Position Mining process. Tokenomics is here:
Our IDO will be launched on Mar 28, 2022! Then we’ll be listed on Pancakeswap and Apeswap. Our IDO page:
Some launchpads also hold side pools for our IDO, the most recent one was ERAX, and it was SOLD OUT within 2 hours.
What is the big things on Derify Protocol that currently ongoing, finished, and will be achieved in the near amount of time? Can you share us your roadmap of Derify Protocol development?
We finished the major development of the smart contracts. Now our Beta testnet is live. Our IDO will start on Mar 28. Our listing will be Apr 1. Our mainnet launch is planned on Q2 this year.
🔹2nd Segment: Questions from Twitter 🔹
Question 1 from @tjokro_ahmad: We all know most people only familiar with centralized derivative exchange, not the dex one. Why does derify need to build that? What the reason in the first place? Why derivative dex should be better than cex? Then why derify ahead from other either the cex or dex?
Derify team was market maker for traditional CEX for long time, we noted some of the drawbacks of traditional CEX: The first is the possibility of unexpected liquidation and market crash due to insufficient liquidity; The second is the lack of transparency and insider trading (unfair transaction speed, exchange front-run, unfair trading fee rates, etc.); The third is the risk caused by the regular Funding Fees (normal traders may face losses, inconvenience for professional traders); The fourth is the regulation and custodial risk caused by centralization. Because all profits belong to the exchange’s team, thus the fundamental interests of the exchange team and users are in conflict. In the end, Derify team decide to build something different and hopefully can pioneer the innovation of Web 3.0 world, or become a good addition to traditional CEX ecosystem.
Question 2 from @john_valkovski: I think Oracle is really crucial part on your ecosystem. So do you have overcome this issue? Or do you have partnered with third party Oracle to connect off-chain towards on-chain data on Derify ecosystem?
Yes we are using Chainlink for oracles. Also Derify is fully on chain, so there’s no need for off-chain/on-chain connection.
Question 3 from @ImMelike32: Derify protocol offers up to 10x leverage and a 2-way open position at the same time. What is the utility of this 2-way open position and how does it avoid raising the users’ debt level to higher than normal fees due to leverage?
Position mining means – as long as you are holding a position (whether long or short), you’ll receive rewards, because the system considers you are providing liquidity. The two-way position is a way for risk-free position mining, the key word here is risk-free. Because your positions are hedged, your unrealized PnL is always 0 and you’ll never get liquidated. You can also do mining with a single position, however, the risk is large because your position may get liquidated during the position mining process. The user can control his own debt level, surely you can participate in mining with 1x leverage.
Question 4 from @syafii_hmad: Your testnet is live now, on the eth and heco blockchain, while your native token will be in bsc. It make me confused, which chains does your mainnet and token will be on? Is it multi chains? Please tell me the reason why did you choose to live on those chains.
I think the user has wrong understanding of the situation, our beta is live on BSC testnet. Our mainnet and Mainnet token will be initially launched on BSC, but we’ll do deployment on multi-chain, as I mentioned above.
Question 5 from @MinhAn93365485: Security is the main center of the platform. Recently, many large platforms have been compromised by hackers and caused a lot of losses to its users, how is the current Derify protocol security system safe from hackers?
Our codes are audited and will be open source for security check. Most of the hacks are results of centralization, we are plan to be as transparent as possible to prevent possible hacks. Here’s our audit report:
🔹3rd Segment: Questions from Telegram🔹
Question 1 from @Zero78781: Is it already listed on CMC?
Yes, we are already on CMC, after we are listed, CMC will also track our price.
Question 2 from @Hadehalexa: I noticed Derify Protocol uses the BSC network, can you explain why you chose the Binance Smart chain? We saw some chains emerge with good scalability too, then why did you choose BSC?
BSC is a good balance between user base, cost and performance. We’ll be on other EVM compatible chains too.
Question 3 from @muhammd_Rabi: Where can I buy your tokens right now what is your current contract and how can I buy them??Where can I buy your tokens right now what is your current contract and how can I buy them? Where can I buy your tokens right now what is your current contract and how can I buy them?
The token is not in public circulation right now, but you can participate in our IDO! Here’s the link:
Question 4 from @muslamin1: How many Social Media do you have? You can share with us the link for your project in all these projects?
Important Links & Docs:
Question 5 from @Febrian27: What kind of partnerships with different projects/platforms/protocols can we expect from Derify Protocol in the near future, do you guys have any plans to work with big brands?
Mainly trading related brands, but we can list any token if possible, surely we’ll work with larger CEXs and DEXs.
Before we wrap up, is there anything that you want to share to all Madians here? The one that still not mentioned before?
Thank you for your questions Madians! It’s really nice talking to you all, feel free to participate in our Beta testing and IDO, have a nice day!