01 Protocol- Centralizing the Decentralized Exchange
This week’s Project Serum Twitter Space takes a deep dive into the 01 Protocol — one of the many brilliant applications being built on top of Serum. The goal of the project is to bring defi-native derivatives to the crypto community. Read on to learn more about how 01 Protocol is disrupting the defi space with a platform that’s truly by traders, for traders.
Today we’re joined by the 01 Protocol team. Namely, the two legends themselves, Stratos and Ryu. Would you guys like to give a quick introduction?
For those who are unfamiliar with 01, we started out kind of exploring the binary options and we’ve grown so much since then. Now, the bigger vision that we’re building and very close to launching is bringing the entire centralized exchange experience in a fully decentralized form.
We’re really enabled by Serum’s order book style here. It allows us to offer a fully decentralized platform thanks to its cross-platform and cross-marginalized nature. The big TLDR for 01 is a whole centralized exchange feel that’s fully decentralized. We’re also super excited to be one of the first to be introducing everlasting options, as well.
You mentioned everlasting options. What are some of the other products you’re looking forward to releasing to the public?
Yea, so we discussed everlasting. Everlasting options are kind of what’s supporting our initial launch. But, really, the platform can be applied to whatever derivatives you can think of.
We’ll be able to support about 50 different types of assets on our exchange in a professional environment. But, once we get more updates from Solana and Serum, maybe there’ll be hundreds of assets. We also allow cross-collateralization of our assets, so you won’t only be tied to USD collateral. You’ll be able to use bitcoin and other crypto assets as well.
You guys have been building for a few months now, but what’s the story for 01 Protocol? How did you guys come together?
We’ve been friends and doing different projects for years. This year we wandered into crypto and decided to do a Solana hackathon back in May or June. We spent a few months trying different things and building little stuff.
Then we met you guys at Serum and got the opportunity to partner with you during development. And, we knew this whole centralized-feeling decentralized derivative platform was going to be built, so we decided to be the ones to build it.
Can you explain everlasting options?
I decided to build everlasting options because when you trade options compared to traditional derivatives, there aren’t that many people trading options. So, we started thinking about why. Why aren’t there that many people using this product?
So, we started looking at different papers and doing research. And we came across Dave White’s paper on Paradigm which made a lot more sense. There needed to be some type of product around options that makes them less complex and makes the concept friendly to a wide range of retail users.
Everlasting options are options that never expire and are traded as “perps” or perpetual options. They’re different because these options can be bundled with a lot of different structured products, so it removes trading hurdles like rolling over positions, etc. Additionally, a bunch of other platforms like Solana and Ribbon are building similar stuff so I was like “maybe this is the perfect time for that.” By doing all of this we’ve essentially created one central-feeling market with increased liquidity which is great for traders because they can get better spreads.
How did you guys decide to build 01 on Solana? Were you guys considering other blockchains and how do you guys compose with Serum currently?
The Solana decision was pretty helpful for us. We had built some stuff on ETH before and were annoyed by the user experience regarding transaction speed and cost. We didn’t see a future for any consumer-facing products on that chain.
After the Solana hackathon, we began to see that the chain could support products that require high throughput and scalability. So, it was very natural for us to just dive into Solana, especially given the support we’re getting on the trading and market-making side and, of course, on the infrastructure side with Serum.
As far as composing with Serum, we’re leveraging Serum’s order book for our entire ecosystem. We’re waiting on updates to roll out on that front and we’ll probably continue to have our own system to maintain funding, margining, etc. to leverage everything possible on Solana.
Maybe you guys can talk about what your plans are going forward for the rest of the year.
Our plans going forward are definitely getting this ready to ship. We’ve been super proud of the speed we’ve been building, and the progress we’ve made this month. Moving forward, we’re working with a lot of structured product teams. Really, the goal there is not only to grow 01 as the decentralized exchange that will replace centralized exchanges but also start to branch out to work with some other protocols and start growing the ecosystem in that way.
I’d also add that we’re big fans of DYDX and have traded there before, so one important thing to us is reaching decentralization and DAO governance as soon as possible. So, the plan is to launch MainNet as soon as possible so we can get these products out there and decentralized into a DAO.
What can supporters of 01 expect from the platform in the future? Do you have anything in the pipeline right now?
So, the robot in my profile picture is a character from our NFT collection, BIT. Each token has a binary identifier, and you can read more into it on our website.
Essentially, the goal of BIT was to create this really exclusive suite of NFTs for our early adopters. We certainly have a lot planned for people who jump in early and give us early feedback. So, the goal is to make this as community-owned as possible. So, if anybody wants to join in and have a conversation we’re always open to that and always happy to find ways to work together.
3, 2, 01, Blast Off!
01 is just one of the many protocols transforming the Web3 finance world. Bringing a “central feel” to a truly decentralized exchange will not only create opportunities for true DAO governance, but it will also help ease retail users’ transition from the world of traditional finance and trading into the crypto economy.
Find out more about 01 Protocol:
Check out Serum here: