Derion Docs
  • Introduction
    • Leverage
    • Compound
    • Power Perpetuals
    • Auto-Deleveraging
  • Existing Challenges
    • Trader Risks
    • Exchange Risks
    • Perpetuals AMM
  • Why Derion?
    • Game Theory
    • Trading Experience
    • Composability
    • Liquidity Efficiency
  • Protocol Design
    • Features
    • Pricing Curve
    • State Transition
    • Price Oracle
    • Liquidity Provision
    • Liquidity Concentration
    • Funding Rate
    • Maturity
    • Opening Fee
  • Guide
    • Trade
      • Long/Short
      • Swap
      • Providing Liquidity
    • Pool Creation
  • Technical Design
    • Universal Token Router
    • Derivative Tokens
    • Helper Contracts
    • LP Management
  • Contracts
    • Addresses
    • API
  • Applications
    • AMM-LP IL Hedge
    • Initial Future Offering
    • Depeggable Synthetics
  • Tokenomics
    • Liquidity Mining
    • Referral Commission
    • Trader Incentive
    • Rewards
    • Launchpad Partnership
  • Security Audits
  • Whitepaper
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  1. Protocol Design

Features

After recognizing the existing pain points that Derivatives DEXes are currently having, Derion has developed multiple innovative technologies in an attempt to tackle those shortcomings.

  • Power (compounding) Leverage instead of Linear Leverage: More potential upside with less downside, no liquidation risk.

  • Asymptotic Power Curve as Pricing Curve (see below): Enable infinite liquidity with no liquidation. Congested liquidation events are eliminated because there simply won’t be any liquidation!

  • Auto-Deleveraging (ADL): Our risk management mechanism to mitigate the effects of extreme market conditions (under-collateralization).

  • Double-price system: Enforces the conversion rate to use the less beneficial result of the 2 prices (Spot & TWAP, both from Uniswap v3 Oracle).

    • Prevent price manipulation like a flashloan attack.

    • Prevent TWAP exploit.

    • Gather more fees for Liquidity Providers during volatile markets.

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Last updated 1 year ago

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