Deri is a decentralized derivatives trading platform that currently supports trading products including Perpetuals/Perpetual Futures and Everlasting Options products.

It facilitates people to trade derivatives accurately and efficiently.

In essence, the Deri protocol is a decentralized protocol that allows users to exchange risk exposures.

As a decentralized solution, the Deri protocol is designed to comply with all definitions of DeFi and the nature of financial derivatives.

The Deri protocol works a bit like Uniswap, with the liquidity pool acting as a trader's counterparty. In the case of Uniswap, where spot trading takes place, each pool has a pair of tokens and is prepared to exchange requests upon the trader's consent. In the case of Deri, the pool acts as a counterparty to the derivative. In the financial industry, such roles in the derivatives trading business are called dealers. The typical derivatives dealer is the derivatives trading platform of an investment bank. Basically, the liquidity pool of the Deri protocol is the derivatives trading platform of the DeFi world. A counterparty entering into a derivative contract takes an opposing trading position. In traditional finance, trading platforms manage market risk by hedging their net positions. In the Deri protocol, this situation is hedged in a decentralized manner through a liquidity pool.

In addition to governance, DERI is mainly used for LP incentives, including perpetual futures LP and perpetual options LP will get DERI incentives.

Deri's sustainable options product uses DPMM (Derivative Positive Market Maker). DPMM is based on the PMM algorithm created by DODO, a spot trading platform. PMM is also an automatic market making algorithm (AMM), but it differs from CPMM (constant product market maker) such as Uniswap in that PMM actively concentrates pool liquidity towards the current price. To achieve better trading depth.

Decentralized: The Deri protocol is a set of smart contracts deployed on a server, the Ethereum blockchain, that conduct exposure exchanges entirely on the chain; Real derivatives: the PnL of the user's location uses the predictor to update the marked price to ensure accuracy, and open positions are maintained by margin, which provides built-in leverage; Composability: Positions are marked as non-homogeneous tokens (NFT) that can be held, transferred or imported into any other DeFi project; Openness: Anyone can start the pool with any basic token (but usually staboins, such as USDT or DAI). That is, the protocol does not enforce any particular "internal chip." Simplicity: The Deri protocol uses an extremely simple transaction flow.

Deri Protocol's native tokens total 1 billion, of which: 600 million were allocated to liquidity mining, so far more than 44.7 million tokens have been released. 360 million are allocated to teams and investors, which unlock linearly over two years. Since Deri did not disclose the exact amount or valuation of the investment in any of its rounds, we do not know the exact ratio of the team to the investors. 40 million allocated to the Treasury.

Deri Protocol adopts the product mechanism of "trading price is concluded in accordance with the predictor, and all LP jointly bear the payment responsibility", and uses the fund rate mechanism to balance the naked position.

Compared with GMX and Cap Finance, it has a more perfect naked position handling mechanism; Compared with Perpetual Protocol, MCDEX, Futureswap and other protocols that adopt some KIND of AMM mechanism to determine the transaction price, Deri performs better in the transaction depth.

In terms of on-chain sustainable futures trading platform, There are many competitors of Deri. In general, Deri has excellent mechanism in terms of product mechanism. They adopt the bold mechanism of "trading price is traded according to the predictor and all LP jointly bear the responsibility of payment". It also adopted a capital rate mechanism to effectively balance naked positions (too many in one direction, which can be dangerous to the system).

The current excellence of Deri is not reflected in volume. Compared with MCDEX, GMX and Cap Finance, the trading volume of Deri sustainable futures is much smaller, which is related to the lack of trading mining stimulation and short-term BSC's slight lag in the competition of public chain, but it also shows that the team still needs to continue efforts in operation promotion and transaction promotion. But with BSC's announcement on October 12 of a $1 billion eco-incentive fund, and Deri's simultaneous announcement of a deal-mining plan, both will produce fundamental shifts.

Prophet risk Decentralized derivatives projects rely on the prophet is the highest among all DeFi major protocols, if the prophet can not accurately and real-time transmission of data, it is very prone to risk. In the history of Deri, there have been problems with prophets. Although the team actively collaborates with the Service providers of The Prophets (sponsor Chainlink) to provide the prophets with a smaller price gradient, as the overall service capabilities of the Prophets improve, such risks will be reduced, but there is no way to avoid them. Deri currently offers services primarily on BSC and Polygon, both of which have been losing ground in the recent public chain competition, and derivatives trading on the chain has been relatively inactive. However, with BSC's $1 billion fund plan to provide liquidity support to the BSC derivatives trading platform on October 12, and Deri being named MVBiii Star of the month for the second consecutive month, this risk should be reduced. Smart contract security risks Smart contract security risks are inherent in all DeFi projects. The Deri team's perpetuated futures and perpetuated options products have been audited by Peckshield, and the latest perpetuated futures contracts have been audited by Certik, so smart contract risks are relatively low. First mover disadvantage risk Deri's perpetuity option is currently the first perpetuity product to be implemented and currently has a first mover advantage. However, in business practice, the first-mover does not always gain continuous advantages. Instead, it is the latecomers who make targeted improvements to the strategies of the forerunner to achieve overtaking in corners. For example, Bancor is the first to achieve AMM, but Uniswap is the one to carry forward. At present, Deri's perpetual option code has been open source, and there is the possibility of Fork and consolidation, so there is a risk of a certain disadvantage in first-mover.

Deri's perpetual futures product has bold design and perfect mechanism among its peers, and its perpetual options product is an excellent innovation, which is expected to disrupt other options trading platforms.

With the general trend of decentralized derivatives trading platforms and the strong support of short-term BSC, combined with the upcoming trading mining, Deri is expected to enjoy a win-win situation of growth and improved valuation.