Position Mining

In Derify protocol, all long positions provide liquidity for short positions, and vice versa.

Therefore, holding a position is providing liquidity.

Derify protocol will reward all positions held, regardless of their directions - this rule is called "position mining", which means all position holders, including but not limited to traders, arbitrageurs, and yield farmers, will receive almost risk-free rewards for holding positions.

For a single derivative, position mining rewards are distributed based on the proportion of one's position size relative to the system's total positions. The reward is a fixed percentage, 30%, of the platform's trading fee revenue, distributed in the form of the Margin Token, as well as our native token DRF.

The reward is a fixed percentage of the platform trading fee (30%, in the form of stablecoins) and the protocol native token DRF.

Holding 2-Way Positions

Derify protocol supports 2-way positions holding.

Traders can hold both long position and short position of one derivative at the same time (however, multiple positions in the same direction will still be merged as one single position, the price and amount of which will be re-calculated).

While using the built-in cross margin trading mode, 2-way positions held by traders with the same amount will never be liquidated and remaining equity will never change, no matter how the market price fluctuates. Therefore, traders can participate in position mining on an almost risk-free basis via this 2-way positions holding feature.

Opening 2-Way Positions

Derify protocol offers a 2-way position opening.

Traders can open both long position and short position with the same price, same leverage, same amount, at the same time, but in opposite directions. As opening 2-way positions does not affect naked positions, it is always fully hedged and free[1] of Position Changing Fees[2].

With the function of 2-way positions opening, traders can open two completely hedged positions for position mining, with zero deviation and slippage.

Traders can close the 2-way positions separately. For clarity, 2-way positions opening is just a fast track to open positions, and the positions opened thereby are still the same as normal positions.

[1] Trading fee is still required.

[2] Details in Position Change Fee.