In the Project Spotlight series, we interview interesting projects developing on the Binance Smart Chain (BSC). Previously, we shared interviews with many projects, including Thetan Arena, Tranchess, bloXroute Labs, or Alpaca Finance. The latest project we interviewed is Deri Protocol.
Let's jump into it.
Spotlight on Deri Protocol
IMPORTANT: Please note the following content does not constitute an endorsement or approval of any of the products or services of the project, organization, or individual.
Hello Deri! Let's start as usual with the Spotlight interviews – what is Deri protocol all about? Can you give us a brief intro?
Deri Protocol = (Perpetual Futures + Everlasting Options) x Decentralized.
Deri is the DeFi way to trade derivatives: to hedge, to speculate, to arbitrage, all on-chain. With Deri Protocol, trades are executed under the AMM paradigm, and positions are tokenized as NFTs, highly composable with other DeFi projects. Having provided an on-chain mechanism to exchange risk exposures precisely and capital efficiently, Deri Protocol has minted one of the most important blocks of the DeFi infrastructure.
While there are already derivatives solutions for crypto, most of them are either centralized or insufficient to meet the needs and demands of potential DeFi clients. Simply speaking, the ultimate solution to exchanging risk exposures in the crypto world has to be something original and organic within the blockchain. And that's exactly what Deri Protocol stands for!
After this intro, the name Deri Protocol is kind of self-explanatory. So instead, tell me how why did you decide to create this project?
DeFi is growing rapidly in the crypto world. In the phrase of DeFi, Decentralized Finance, "decentralized" refers to the method and means, while "finance" is the goal. DeFi is committed to solving the same problems as traditional finance. Therefore, derivatives will also be the jewel in the crown of the DeFi world.
Projects like Pancake take care of the spot trading pretty well. And DeFi needs derivatives too. Just take a look at the derivatives trading of CeFi (exchanges like BitMEX, Deribit, FTX); the demand for DeFi derivatives is just as huge as that of the spot.
Now let's talk a bit about the people behind Deri Protocol. Who's on your team?
Deri Protocol is designed and developed by Defi Factory, a team of experts in finance, math, and computer science. The core members have Ph.D. degrees in science and come from the derivative business of Wall Street. The team has in-depth experience in derivative pricing/trading/structuring. The team members have been in the fields of crypto trading and solidity programming for several years.
You can see the team here.
What are the main advantages of Deri Protocol compared to other DeFi products?
Deri Protocol provides Everlasting Options and Perpetual Futures. Below are comparison graphics that compare our current products with other DeFi/CeFi derivative projects.
Let's say I want to start using Deri Protocol. Where do I start? Where can I find some how-to guides?
It is pretty easy to get started on the Deri Protocol.
A list of resources for Deri Protocol is below. To get started, Deri Protocol's formal documentation is the best route.
- Website: https://deri.finance/
- Pools: https://app.deri.finance/#/mining
- Futures: https://app.deri.finance/?locale=en#/futures/pro
- Options: https://app.deri.finance/?locale=en#/options/pro
- Docs (incl. Guides): https://docs.deri.finance/
What made you decide to build on the Binance Smart Chain?
First, the BSC ecosystem is better supported for applications, running comprehensive support to boost DeFi projects like Deri Protocol.
Secondly, there are many promising DeFi projects on Binance Smart Chain. As part of DeFi lego, we actively engage with various DeFi projects on BSC to offer the DeFi way to trade derivatives to the BSC community.
Last but not least, we love the active community of BSC and welcome their participation in growing the Deri Protocol ecosystem.
What do you see as the main challenge for the future of DeFi?
Security. The dramatic rise in value held on the DeFi market coupled with the fact that all DeFi platforms are largely run autonomously has made it a vulnerable, lucrative target for malicious hackers. Projects should routinely carry out security audits from respected cybersecurity firms to reduce the threat of direct protocol vulnerabilities.
So with that in mind, how do you protect your users and their funds? What is your security strategy?
To secure our derivative trading, which is critical for users to exchange risk exposures precisely, we needed access to fresh asset prices supplied on-chain directly in a highly reliable manner. Deri sponsored and integrated the fastest BTCUSD, ETHUSD Chainlink oracle price feeds with a 0.1% deviation threshold on Polygon & BSC.
In addition to our internal security efforts, Deri Protocol has also completed audits in Smart Contract from Peckshield & CertiK and launched a Bug Bounty program on Immunefi.
And now the final question. What do you hope to see next from the BSC community?
We've already been working with BSC-based community projects such as PancakeSwap and dForce, who have been very helpful in introducing us to the BSC community. In the future, we are eager to work with these projects further along with other projects and community members of BSC to expand derivatives trading opportunities across the BSC. As Binance has many users worldwide and since we are a community-centric project, we hope the BSC community can join us with fresh Deri perspectives, innovative ideas, and resources to make Deri the premier derivative exchange in DeFi.