What is Deri Protocol?
The Deri Protocol is a collection of smart contracts that operate on the Ethereum blockchain, allowing users to trade derivatives in a decentralized finance (Defi) environment. It is designed to facilitate easy-to-use trading processes and precise position calculation using mark price. Deri positions are tokenized as non-fungible tokens (NFTs), which can be transferred or imported into other Defi projects for financial purposes. The protocol also introduces a game called ‘lego gameplay’ for Defi projects.
As the name implies, the Deri Protocol is a platform for trading derivatives. According to the project’s whitepaper, derivatives are contracts that derive their value from an underlying asset or entity. They are used to insure against price movements or to access hard-to-trade assets or markets. The Deri Protocol aims to fulfill these purposes in a decentralized, blockchain-based environment.
One of the core functions of finance is exchanging risk exposure, including borrowing and lending. Centralized exchanges (CEXs) already serve this purpose in the crypto world, but they are not fully integrated with the blockchain and cannot interact directly with other on-chain activities. The Deri Protocol aims to address this gap by providing a Defi platform for exchanging risk exposure.
The Deri Token (DERI) is the native cryptocurrency of the Deri Protocol, based on the ERC-20 token standard. It is used as a governance token, allowing the community to share ownership and participate in the protocol’s governance. DERI tokens are also used as fee tokens, distributed to users who provide liquidity to the protocol.
The project was founded by 0xAlpha and Richard in 2020, with a team including Jason, Janice, and Daniel. The total supply of DERI tokens is one billion coins.
Deri Protocol provides a promising solution for trading derivatives in a decentralized and blockchain-based environment. Its simple and easy-to-use trading process, precise position calculation, and tokenization of positions as NFTs, make it an attractive option for traders seeking to trade derivatives on the blockchain.
The investment information, comments, and recommendations provided here do not fall under the scope of investment consulting. Therefore, making an investment decision based solely on the information and comments provided here may not yield results that meet your expectations.
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