AMA Recap — Derived Finance
The session of AMA ( Ask Me Anything ) with Derived Finance was conducted on 8th October 2021 at 5:30 PM IST (12 PM UTC) and lasted for 1 hour.
ADMIN ROUND
I welcome you on behalf of Crypto players India team, hope you will enjoy today’s AMA session.
Very excited to have you with us.😊
Jonty|Host
To begin with, Could you kindly introduce yourself to us? and the team working on Derived?
Bharat | Derived.Fi
My name is Bharat Verma and I am the CEO at Derived (@DerivedFi). I manage Biz Dev, Global Ops, Strategy and Finances at Derived. Speaking from my experience POV, I am an entrepreneur and I own and run multiple businesses. I have been in the Blockchain space since early 2017 and have invested/advised/worked with multiple projects over the last couple of years. I have been working with Derived for almost a year now.
Apart from me, there is Victor, who is CTO at Derived and he has 15 years of experience working as a Technical Architect for companies like JP Morgan, Novartis, Oxford and others. Muthu is our Head of Research and Development. He is also a Solidity and Python Developer and has worked with various projects in the past.
Jonty|Host
What is Derived? Please provide a detailed introduction.
Bharat | Derived.Fi
Derived is a very simple concept yet very vast project. It is a platform for trading Synthetics assets of crypto, stocks, commodities, forex and much more. We are going to have a DEX for trading stocks, forex, crypto commodities etc. (think of Uniswap + Robinhood), lending and borrowing (think Aave), Binary Options, Hybrid Tokens (think of index tokens) and much more. The project is very vast and we have a long term plan to deliver all the goals in a phased manner.
Jonty|Host
What is the most ambitious objective you have for your project? What is your project’s long-term goal?
Bharat | Derived.Fi
Our main objective here at Derived is to create a decentralised Synthetic asset platform for everyone giving the users all the freedom from selecting their leverage based on their personal preference to creating their own hybrid tokens tracking their favourite assets. The platform will allow users to trade traditional as well as crypto assets in a single place. We are also working on bringing unconventional assets for trading. Long term our goal is to have both traditional retail traders as well as institutional trade on Derived. To be fair, this will not happen overnight nor will this be easy. Building trust and community takes time and we see a lot of growth in this market segment over the next 3–5 years.
Jonty|Host
What is the plan to ensure sufficient liquidity on exchanges to fill market orders, especially as adoption increases and clients begin multiplying year-over-year for your project?
Bharat | Derived.Fi
You mean the liquidity on Derived. Our model is actually completely different. We have a completely different concept when compared to other DEXes. There is no slippage or liquidity issues. We use a peer to contract trading system. In normal Dex when you trade there are certain constraints such as liquidity and volume and so on. They depend on a counterparty to trade. Every buyer needs a seller and vice versa. It is also called a peer to peer model. In the Derived Peer to Contract model, you are trading with the contract. So you buy and sell to the contract. The contract is able to fund these operations through a shared debt pool on the platform. This is a very interesting concept. We recently did a very detailed article explaining this. I would encourage the members to read it. https://derivedfinance.medium.com/understanding-derived-platform-cb186023cc68
Jonty|Host
Derived is having its IDO on dual launchpad. Please share all the details with our community.
Bharat | Derived.Fi
Yes we are having our Dual IDO launch on Poolz (https://derivedfinance.medium.com/derived-fi-upcoming-ido-on-poolz-dual-ido-898868b86856) and Occamfi (https://derivedfinance.medium.com/deriv-ido-on-occamrazer-launchpad-51ceed87cb02) on 13th October and you can find the details about how to participate in these medium articles. We will also host a gleam competition where people will be able to participate and earn whitelisting spots. More details will be shared I think by today evening or tomorrow morning.
Jonty|Host
Where do you see yourself in terms of your roadmap? what is your next most important priority?
Bharat | Derived.Fi
We are very excited to see this space grow in last 1 year. When we started building derived there were not many L1 solutions apart from Ethereum. But in the second half we saw Polkadot and then earlier this year Solana, Cardano and many other L1 and L2 gain traction. The space is quickly evolving and I think the future is multi-chain. We are almost in final stages of our first iteration of our MVP, which will showcase Binary options. As with any Software Development Life Cycle , the MVP will go through multiple iterations with constantly integrating various modules. We will follow CI/CD pipeline for our project. We will release the complete roadmap soon.
TWITTER ROUND
The Derived platform brings multiple features like 0% slippage and unlimited liquidity. This is possible thanks to the “Peer to Contract” trading system. What is the “Peer to Contract” trading system? 0% slippage profits and unlimited liquidity?
Bharat | Derived.Fi
Exactly, like I said earlier. The peer to contract trading system allows the users to sell and buy against the contract. So there is no need for a counterparty. The slippage is zero as asset price is derived using price Oracles. As for the liquidity, it is only limited by the amount of DVDx tokens that you hold to mint USDx.
Derived is a cutting-edge blockchain platform that offers users features like Governance. but Is it possible for token holders to vote on project governance? What kinds of project-related decisions are up for a vote?
Bharat | Derived.Fi
Yes just like any other decentralized project Derived can make all decisions like rewards, emission for Liquidity mining program, creation of new hybrid assets or any platform changes will be decided using the Governance system. Platform stakers will be voting on governance and other details in regards to quorum will be released in the coming weeks.
What are the purpose of the two tokens,$DVDx and $USDx in the @DerivedFinance platform?Which one of these act as the collateral for the leverage trades &what is the maximum leverage that is allowed in the platform?Will the users get any grace period,if his collateral ratio falls?
Bharat | Derived.Fi
DVDx is the native platform token and the USDx is the platform stable coin. To trade on the platform the user needs the native USD which is USDx. To mint USDx the user needs to stake the DVDx token. It is similar to how you will do for DAI and ETH or UST and LUNA. As with any other platform, when you stake tokens to mint the stablecoin users need to maintain a collateral ratio. They can also use leverage to mint more USDx per DVDx token staked. The maximum leverage that a user can make in the platform would be 3x. For liquidation, there will be two ratios: Liquidation Ratio (LR) And Forced Liquidation Ratio (FLR). If the Collateral ratio (CR) falls below LR, the user gets a grace period to fix the CR. However, if the CR falls even below FLR then the position will be liquidated without any grace period to protect the peg of USDx.
COMMUNITY ROUND
Cerrey Kha
Binance smart Chain blockchain is having high transaction speed and cheap gas fees, Are you planning to launch your mainet or switch to other blockchains in the future?
Bharat | Derived.Fi
Our MVP will be on BSC. We will connect to all chains in the future through the use of bridges. We plan to support Ethereum, Cardano, Polkadot and Avalanche.
Khalek Mahamud
What is the most ambitious goals of the project now in the future and Can you explain how is your Tokenomics Distribution?
Bharat | Derived.Fi
You can read about our tokenomics here: https://derivedfinance.medium.com/derived-tokenomics-explainer-775632e6a7b5
Allu Arjun
How important is the community to you? and how can we collaborate or help you for the development of the project?
Bharat | Derived.Fi
We are closely working with our marketing team who are always looking for community feedback. Our target audience is very vast. It involves crypto traders as well as traditional financial traders who want to trade stocks, forex, commodities etc. on a decentralized platform. Basically, anyone or anybody looking to trade any or every asset type would be happy to use Derived which is the one-stop platform for any type of trading asset. We are also working with Tokensuite for Marketing, X8C for outreach/awareness and Marketacross for PR. We will also announce our Ambassador program after the IDO to allow users to participate and work closely with the project. Finally, our team is already working on creating.
Phong Hào
What plans do Derived have to increase and maintain the value of Derived tokens in the long term? What are the benefits of holding?
Bharat | Derived.Fi
The Derived tokens play a very important role in the ecosystem. It is central to all activities on the platform. Derived will have its own stable coin, we are calling it as USDx. Users will be able to mint USDx by locking Derived tokens and in return receive staking rewards. It will be the only stablecoin that you will be able to use on the Derived platform. However, you will be able to use USDx outside the platform as well. So, demand for the derived token will always be high as it will be staked for doing any type of trading on the platform. Our estimate is that on the long term 80–90% of the tokens will be staked in the platform. local communities to target people from across the globe.
Tiến Hải
To run a project smoothly, Funding is very important, Where does Derived’s Capital / revenue come from?
Bharat | Derived.Fi
Derived Platform will generate fees through all trading activities on the platform. A part of the fee will be shared with the platform token holders and the rest will be used by the platform for development. This will also be decided through Governance.
Tiến Đạt
Why did you build Derived, what was the motivation for Derived to start this project? What is different about Derived project to attract investors’ attention?
Bharat | Derived.Fi
Me and my co-founders Victor and Muthu, have a background in trading of Stocks, Options and other traditional financial markets and we have always for the past 1-year that there is a huge audience of users who are waiting for a platform where they can trade traditional assets and crypto in a single platform. In the past year we saw a trend where The idea to build derived came from our experience in technology as well as in financial industry. We want to build a product that will truly echo the ethos of decentralization and we hope derived brings DeFi to everyone across the world.
Jocasta Esperanza
What are the 3 main features you would recommend to us? What are the applications that # Derived targets in the future (daaps. finance. business …)?
Bharat | Derived.Fi
We actually work on many of the shortcomings in these two platforms. Some of the USP of Derived is:
Leverage Minting: This allows users to mint more USDx and solves the over-collateralization problem of DeFi.
Hybrid Tokens: This will allow users to combine the same or different assets types into a single asset. For Example, you can merge Uniswap, Sushi and Coinbase share into a single token. Then you can use that to get in and out of the asset type. Think of them as mini-index tokens.
Native currency support: Our platform will support multiple native currencies. It will allow users from developing countries to see their trades, balances, rewards in their native currency.
You can follow us on our socials at the following links given below.
More AMA’S and reward programs are coming up so stay tuned
Website — https://derived.fi/
Twitter — https://twitter.com/DerivedFinance
Medium — https://derivedfinance.medium.com/
Telegram — https://t.me/derived_discussion
The AMA recorded many great questions from the Crypto Players India community, as well as meticulous answers from our guest Bharat from Derived.Finance. AMA Concluded at 6:30 pm IST.
