Introduction

Overview

Derify protocol is an innovative decentralized derivative trading protocol. Traders can trade with 75X leverage[1] on exchanges based on this protocol.

Derify protocol is a programmable liquidity pool that supports various assets as collateral. Third-party smart contract can achieve much more advanced and complicated DeFi (decentralized finance) applications based on this protocol.

Derify protocol enables anyone to create any derivatives freely (as long as proper Oracles exist). It supports all types of derivatives (based on price index), e.g. on-chain assets: crypto, or off-chain assets: gold, foreign exchange, and crude oil.

Based on the very nature of derivatives and margin trading, Derify protocol introduced two innovative mechanism: hAMM (Hedged Automated Market Making) and position mining.

With Derify protocol, traders can directly trade with liquidity pool without specific trading counterparty or market maker. Furthermore, in this protocol, holding both long and short positions guarantees liquidity rewards, rather than paying funding fees like in traditional derivative exchanges.

Details of our operation as well as its feasibility are further illustrated below.

[1] Higher leverage 100X-1000X will be supported based on the overall liquidity risk in each derivative

Our Vision

Our goal is to become one of the safest, most adaptive and most widely-used derivative trading infrastructure in the world.

We hope the existence of Derify protocol sets stages for more innovative DeFi applications and products.

We are firm believers of Decentralized Autonomous Organization (DAO). As the project moves forward, Derify protocol will be completely owned by the community, run by the community and innovated by the community. Every holder of DRF token can participate in the community governance, and may hopefully earn substantial rewards from the growth of this project.

Current Version

The current version of the Derify protocol is Derify Protocol V2.0.0, updated by August 2023.

At this moment, our primary objective is to support various assets as collateral to facilitate perpetual trading.

From the function perspective, we will focus on implementing core mechanisms and key features, building a comprehensive risk management system. Enabling clients to create self-serving derivative products and support for multiple chains will be gradually introduced in subsequent versions.

Plan for the future can be found in Roadmap.