What is Deri Protocol?
Deri is a decentralized derivative trading platform that allows users to exchange risk exposures and capital with precision and efficiency. Through DeFi tools on Deri Protocol, users can hedge risk, speculate, or arbitrage on-chain.
Deri deploys an automated market maker (AMM) model to automate order processes and ensure faster and more affordable order settlement. Essentially, the derivative trading AMM model works similarly to decentralized exchanges (DEXs). Additionally, the AMM mechanism works as the trading counterpart to contrast the trader’s derivative position against the liquidity pool.
How does it work? Consider a trader’s derivative position, for instance, entering a long position for a futures or options trade. The AMM will automatically enter a countering short position. Thus, the protocol simplifies access to countering positions. One could argue that Deri is the Uniswap of derivative trading. The liquidity pool, on the other hand, bears all risks for the counter-positions held as a passive counterparty against every trader. So, in derivatives trading, the majority side will incur a funding fee equivalent to the net position of the minority side.
Moreover, keep in mind that Deri Protocol supports perpetual futures and everlasting options as the two main types of derivatives. A simple AMM is enough for perpetual futures. On the other hand, everlasting options require a highly specialized AMM to facilitate trades on the platform.
Lastly, note that Deri Protocol also features multiple base tokens for providing liquidity and margin trading.
Check out the DERI price chart above to stay updated on the latest Deri Protocol price movements.
Use Cases of DERI
The Deri protocol relies on its native token, DERI, to facilitate processes. The token performs two key functions – governance and privilege.
As a governance token, DERI holders can participate in decision-making and voting on proposals regarding Deri Protocol’s future. Vote weights are proportional to the number of tokens a user holds.
Though the DERI crypto asset can also be deployed as a privilege token to offer users exclusive access to features on the Deri trading platform. The privileges include discounted transaction fee rates and liquidator qualification.
Planning to buy Deri Protocol tokens? If you are, make sure to do a thorough DERI price analysis. Use the Deri Protocol price chart above for doing that.
Who Founded Deri Protocol?
Deri Protocol founders are pseudonymous, with 0xAlpha as the CEO and Richard as the CTO. The co-founders are seasoned entrepreneurs with extensive experience in the crypto sector, especially trading and smart contract development.
Other Deri Protocol team members are Jason – the business development lead; Janice – the marketing lead; and Daniel – the product lead.
Tokenomics of DERI
DERI has a total supply of 473,337,679 tokens. The platform has burned over 5.5 million tokens, solidifying its deflationary mechanism. This way, the project manages to maintain a steady DERI price, especially during volatile environments.
