Deri Protocol Will Sponsor and Integrate Chainlink Price Feeds to Secure its Derivatives Trading Protocol
By: Deri Protocol
Tags: Derivatives, Blockchain, Oracle, Chainlink, Trading

Deri Protocol Will Sponsor and Integrate Chainlink Price Feeds to Secure its Derivatives Trading Protocol Deri Protocol Jul 15·5 min read

We’re excited to announce that Deri Protocol — a Uniswap style BitMEX+ — will sponsor and integrate Chainlink Price Feeds with the improved deviation threshold (0.1%) on Polygon, BSC, and Heco. By integrating Chainlink’s industry-leading decentralized oracle network, Deri Protocol has access to high-quality, tamper-proof price feeds needed to provide the precise value in USD for perpetual contracts’ underlying assets. This will provide our users with strong assurances that all the index prices are provided in a fully decentralized manner, ensuring accuracy and reliability during extreme marketing conditions.

Our initial integration will involve the use of the following Chainlink Price Feeds with the improved deviation threshold (0.1%) : BTCUSD and ETHUSD. As the index price is the most important for derivatives trading, fast price updates are needed to provide the most professional derivatives protocol. We chose and sponsored Chainlink as our go-to oracle solution because its infrastructure is seamless to integrate and time-tested in production. Chainlink already secures leading DeFi protocols responsible for tens of billions of dollars in smart contract value, maintaining robust security and high availability even amidst unexpected events, such as exchange downtime, flash crashes, and data manipulation attacks via flash loans.

Deri, a Uniswap style BitMEX+, is a decentralized protocol for users to exchange risk exposures precisely and capital efficiently. It is the DeFi way to trade derivatives: to hedge, to speculate, to arbitrage, all on chain. This is achieved by liquidity pools playing the roles of counterparties for traders.

Deri Protocol is a novel derivative protocol that supports multiple tokens as base tokens for liquidity providers to provide as liquidity as well as for traders to deposit as margin, which is called dynamic mixed margin and liquidity framework. Within the framework, derivative trading can achieve an optimal capital efficiency, which is potentially higher than that of centralized exchanges.

Having provided an effective on-chain mechanism to exchange and hold risk, Deri Protocol has minted one of the most important blocks of the DeFi infrastructure.

In order to secure our Perpetual Pools, which is critical for users to exchange risk exposures precisely , we needed access to fresh asset prices that are supplied directly on-chain in a highly reliable manner. Fair market asset prices should reflect a volume-weighted average from all trading environments, so we need to make use of an oracle to fetch aggregated price data off-chain and deliver it on-chain to be consumed by our application.

After reviewing various oracle solutions, we selected Chainlink Price Feeds because they provide a multitude of critical features such as:

High-Quality Data — Chainlink Price Feeds source data from numerous premium data aggregators, ensuring broad market coverage through price data that’s aggregated from hundreds of exchanges, weighted by volume, and cleaned of outliers and wash trading. Chainlink’s data aggregation model generates accurate global market prices that are inherently resistant to inaccuracies or manipulation of any single or small set of exchanges.

— Chainlink Price Feeds source data from numerous premium data aggregators, ensuring broad market coverage through price data that’s aggregated from hundreds of exchanges, weighted by volume, and cleaned of outliers and wash trading. Chainlink’s data aggregation model generates accurate global market prices that are inherently resistant to inaccuracies or manipulation of any single or small set of exchanges. Secure Node Operators — Chainlink Price Feeds are secured by independent, security-reviewed, and Sybil-resistant oracle nodes run by leading blockchain DevOps teams, data providers, and traditional enterprises. Chainlink nodes have a strong track record of reliability, even during high gas prices and infrastructure outages.

— Chainlink Price Feeds are secured by independent, security-reviewed, and Sybil-resistant oracle nodes run by leading blockchain DevOps teams, data providers, and traditional enterprises. Chainlink nodes have a strong track record of reliability, even during high gas prices and infrastructure outages. Decentralized Network — Chainlink Price Feeds are decentralized at the data source, oracle node, and oracle network levels, generating strong protections against downtime and tampering by either the data provider or oracle network.

— Chainlink Price Feeds are decentralized at the data source, oracle node, and oracle network levels, generating strong protections against downtime and tampering by either the data provider or oracle network. Reputation System — Chainlink provides a robust reputation framework and set of on-chain monitoring tools that allow users to independently verify the historical and real-time performance of node operators and oracle networks.

We are working on launching additional Perpetual Contracts to our platform, with the goal of making Deri Protocol the go-to platform for trading derivatives. Starting with BTCUSD and ETHUSD, Deri Protocol plan to using Chainlink for providing additional price feeds for all of our add-on perpetual pools.

0xAlpha, co-founder & CEO of Deri Protocol, said

“The oracle mechanism is the most important element for any DeFi projects, especially for derivative trading solutions. After thorough internal research and discussions with the Chainlink Labs team, we decided to sponsor the Chainlink Price Feeds, adding more security and transparency to the Deri community, and furthering the whole DeFi ecosystem. We look forward to working with Chainlink in the future as we add additional products!”

About Chainlink

Chainlink is the industry standard oracle network for powering hybrid smart contracts. Chainlink Decentralized Oracle Networks provide developers with the largest collection of high-quality data sources and secure off-chain computations to expand the capabilities of smart contracts on any blockchain. Managed by a global, decentralized community, Chainlink currently secures billions of dollars in value for smart contracts across decentralized finance (DeFi), insurance, gaming, and other major industries.

Chainlink is trusted by hundreds of organizations, from global enterprises to projects at the forefront of the blockchain economy, to deliver definitive truth via secure, reliable oracle networks. To learn more about Chainlink, visit chain.link, subscribe to the Chainlink newsletter, and follow @chainlink on Twitter. To understand the full vision of the Chainlink Network, read the Chainlink 2.0 whitepaper.

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About Deri Protocol

Deri Protocol is a decentralized protocol for users to exchange risk exposures precisely and capital efficiently. It is the DeFi way to trade derivatives: to hedge, to speculate, to arbitrage, all on chain. This is achieved by liquidity pools playing the roles of counterparties for users. With Deri Protocol, risk exposures are tokenized as NFTs so that they can be imported into other DeFi projects for their own financial purpose. Having provided an effective on-chain mechanism to exchange and hold risk, Deri Protocol has minted one of the most important blocks of the DeFi infrastructure.

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