Derify protocol

Derify protocol is an innovative decentralized derivative trading protocol. Traders can trade with 10x leverage[1] on exchanges based on this protocol.

Derify protocol is a programmable liquidity pool that supports multiple assets. 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 like ERC-20 tokens, or off-chain assets like gold 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.