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GAINS Associates

Derived Finance — Telegram AMA — October 01

On Wednesday, October 01, we had the pleasure to welcome to our Telegram chat:

Bharat Verma, CEO

We asked him questions about the development of Derived Finance.

Some sentences have been slightly edited for readability but the meaning has been conserved.

Summary

Derived Finance is a Decentralised Multi-Chain Asset Protocol giving users access to trade Stocks, Commodities, Forex or Crypto on a single platform with unlimited liquidity and no slippage. Derived brings the power of Smart Contracts to the world of derivatives trading acting as a bridge between traditional and digital financial markets.

Derived Finance is the first and only multi-chain Synthetics trading platform. They plan to support Polkadot, Ethereum, Binance Smart Chain, Cardano, Avalanche to begin with and will add support for all major chains in the future.

Traders on derived platform will also receive staking rewards and at the same time will be able to use staked token to trade on the platform.

At the core of derived will be a synthetic Dex that will offer a unique feature of zero slippage solving the long-standing problems of liquidity and slippage in other exchanges like Uniswap etc.

Introduction

Q — Ayeley from GAINS: Please introduce yourself. What did you do before crypto and did you have any other previous venture in crypto?

A — Bharat from Derived: My name is Bharat Verma and I am the CEO at Derived (@DerivedFi). I manage Biz Dev, Operations, Strategy, and Finances at Derived. Speaking from my POV, I own and run multiple Businesses in Asia and North America. 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.

Bharat Verma, CEO

Q — Ayeley from GAINS: Talk about co-founders, can you share some insight into the team working on the project. Do you have a working product already and if not how close are you to bringing it out for believers in your project to use it?

A — Bharat from Derived: So, Victor is CTO at Derived and he has 15 years of experience working as a Technical Architect for JP Morgan, Roche, and others. Muthu is our Head of Research and Development. He is also a Solidity and Python Developer and has worked with projects in the past. We are preparing our MVP that would be available soon after launch. There will also be a Liquidity mining program that will allow people to stake different tokens (such as DAI, USDC, MIM, etc.) in the pool and mine Derived tokens.

About

Q — Ayeley from GAINS: Cool. What is the Derived project about in a few simple sentences? What was the inspiration behind it?

A — Bharat from Derived: Derived is a very simple 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, Binary Options, Hybrid 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.

I and my co-founders Victor and Muthu have backgrounds in trading Stocks and Options and we always felt that many users are waiting for a platform where they can trade traditional assets and crypto in a single platform. We are trying to solve that problem.

Q — Twitter user @Alessa199625: Derived Finance has demonstrated its support for the Cardano chain on several occasions. Do you want to be integrated into the Cardano network in the future or do you currently have interoperable contracts under that network? What potential can derivative finance have in Cardano?

A — Bharat from Derived: Our team is currently working on integrating with Cardano. It will not be available at launch but we would integrate Cardano quickly and that is certainly on the cards. Regarding the advantages that derivatives have in Cardano. I would say Speed, security and their architecture are the best points. Of course, as with any platform, their smart contracts would also evolve in the future and we are looking forward to supporting Cardano and aim to be the first and only Synthetic Trading Platform on Cardano.

Q — Telegram user Michell: Is Derived considered a CEX exchange?

A — Bharat from Derived: No Derived is a dex. That means full decentralization and you own the keys. Your keys == your tokens

Q — Telegram user Nicoll Marchan: What is the maximum of X in leverage of XUSD, how much money is there in liquidity, what happens if I get liquidated, where do the funds go?

A — Bharat from Derived: The maximum leverage is 3x. If your collateral falls below the minimum you get a grace period to fix that ratio. If not, your position is liquidated to maintain the peg of USDx.

Q — Telegram user Jose Gamboa: 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?

A — Bharat from Derived: Peer to Contract system is a system where you will be trading with the contract. So there is no counter-party. When you trade on any other dex you need a buyer and a seller. That gives rise to the slippage. Because of the peer to contract system, there is no slippage, and liquidity is only limited by the amount of USDx you have.

Token

Q — Ayeley from GAINS: And what role will the token play in the Derived ecosystem?

A — Bharat from Derived: The Derived tokens play a very important role in the ecosystem. It is central to all activities. 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. USDx is just like DAI, UST, or any other stable coin. It will be the only stable coin 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 in the long term 80–90% of the tokens will be eventually staked in the platform.

Security

Q — Twitter user @Ductrung753951: Security is the most important thing to consider when starting up a project. How secure is this project for users?

A — Bharat from Derived: Security is very important for any platform new or old. We want to keep our users and their funds safe at all times. We are working with top security audit firms in the industry to audit our smart contracts. Certik is auditing our smart contracts as we speak.

Funding

Q — Ayeley from GAINS: Awesome. Did you raise funds so far? If so, how did you handle them? Are you planning to do any future raises?

A — Bharat from Derived: We completed our fundraiser in May 2021 and raised around 3.3 million from various venture capital firms like AU21, GSR, Genblock Capital, Nabais Capital, Blocksync Ventures, Dweb3, and many more. More than 30 funds participated in the funds raised from all around the world. The funds will be used to develop the platform, hire more people and build bigger a team. We are going to do our public round fundraise on Oct 13/14, 2021, a total of $300k will be raised in the public round.

Competitive Advantage

Q — Twitter user @Phuongkcl: Can you list 1–3 killer features of this project that make it ahead of its competitors? What is the competitive advantage that your project has that you are most confident about?

A — Bharat from Derived: So, there are two major competitors for Derived i.e. Synthetix and Mirror protocol. We are actually working on overcoming many of the shortcomings in these two platforms. Some of the USP of Derived is:

1️⃣ Leverage Minting: This allows users to mint more xUSD and solves the over-collateralization problem of DeFi.
2️⃣ 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 Hybrid token to get in and out of the asset type.

Think of them as mini index tokens.
3️⃣ 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.

Business Development

Q — Telegram user Kaptin Black: Currently, investors are solely interested in short-term token values rather than the project’s true value. Can you explain why investors should retain your tokens for the long term and what rewards they will receive? Do you have a reward system in place?

A — Bharat from Derived: Very interesting question. Some people will trade short-term and others will look at long-term vision. Our focus is long-term and we think there is a huge potential in the platform. Our marketcap is only 960k at launch. If you look at competitors, they are sitting at almost 2 Bn market cap. Of course, we can’t beat them in one day but we will get there with the support of long-term investors. The long-term tokens holders will also get staking rewards, which will beat any asset out there.

Bharat, thanks for coming into our community, and taking the time to answer our questions. Anything else you’d like to say? Where can we follow you to stay updated? — Ayeley Commodore-Mensah from GAINS Associates

I would like to welcome all the Gains Members to explore more about Derived and follow us on our socials: Website | Twitter | Medium | Telegram

More AMA’S and reward programs are coming up so stay tuned — Bharat Verma from Derived

Join us now! Enjoy quality articles, daily curated news, insightful infographics, and enter a vibrant, fun, and knowledgeable community!

Website | Telegram ANN | Telegram Group | Discord | Twitter | YouTube

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GAINS Associates provides you with the latest news and research in blockchain and crypto. It’s a community for everyone to learn and grow together.

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