Derify protocol provides the infrastructure for derivatives trading, more than just an exchange.
We provide all brokers with a decentralized exchange-as-a-service (DEXaaS) based on the Derify protocol.
The exchange used by the end user belongs to the broker, not the Derify protocol.
All exchanges based on Derify protocol globally share insurance pool, bond fund, buy-back fund and other cash pools. The same trading targets of different exchanges globally share position pool and liquidity pool.
Brokers play a very important role in the ecosystem of Derify protocol - brokers have their own community of traders, traders use broker's own exchanges, and each transaction recognizes its broker information.
The broker is the actual link between the Derify protocol and the traders.

Becoming Broker

In early phase, we recruit brokers privately, we focus on broker's professional and capital capabilities to further kickstart our project and build consensus.
When Derify protocol ecosystem stabilizes, we will publicly recruit brokers, during this phase, anyone can become broker as long as they spent given amount of eDRF.

Maintaining Broker Status

All brokers need to continuously burn eDRF to maintain its broker status.
After broker deposit (burns) enough eDRF into the account, the system will update the period of the broker status according to the deposited amount. If the broker status is still valid, the new validity period is added to the old validity period; if the broker status expires, the new validity period is started as of the deposit time.
When the broker incentive is distributed in each block, the system will check the current block timestamp for the validity of broker status. If the broker status is valid, the current block reward will be issued normally, if the broker status is invalid, the current block reward originally belong to the broker will be injected into the insurance pool.

Broker Rewards

The base income for brokers are 30% of the total trading fees generated by their exchanges.
The community fund of Derify protocol reserved considerable DRF for brokers as an additional incentive.
Examples of typical incentive schemes are as follows:
  • Broker Rankings
    Derify protocol will rank brokers' performance according to their contribution to the community, and award tokens to brokers according to their rankings.
  • Reward for Position Mining
    Derify protocol will calculate effective positions of brokers and reward tokens to brokers according to their positions.
  • Promotion Token Pool
    Derify protocol reserve special tokens to help brokers to promote their exchanges. When a broker attracts new users who generates certain amount of trading fees, the broker can withdraw tokens from promotional pool and distributed to its own users.
The community (including the brokers themselves) can draft, discuss and implement further incentive schemes to motivate the brokers, as long as they are approved by DAO voting.