[Deri Protocol] [Draft] [STIP - Round 2]


Applicant Name:

Deri Protocol Team

Project Name:

Deri Protocol

Project Description:

Deri Protocol is the DeFi way to trade derivatives: to hedge, to speculate, to arbitrage, all on chain. Deri supports four derivataive types: Futures, Options, Power Perpetuals and Gamma Swap.

In the upcoming Deri V4, the introduction of the d-chain and i-chain architecture is pivotal. While i-chains serve as the requesting interfaces for users, it’s the d-chain that processes the requests from all i-chains. Launching as an Orbit Chain, d-chain not only processes but also settles all transactions on the Arbitrum One. Meanwhile, i-chains encompass all the major public layer 1s and layer 2s, such as Ethereum, Arbitrum, BNBChain, zkEVM, and zkSync Era. This innovative Deri V4 architecture, with d-chain at its core, is set to expand Arbitrum’s influence across different layer 1s and layer 2s, connecting and shaping a more extensive Arbitrum ecosystem. In essence, Deri V4 will elevate Arbitrum to a more central role among all public layer 1s and layer 2s.

Team Members and Qualifications:

  • 0xAlpha: Co-founder
  • Richard: Architect
  • Jason: BD Lead
  • Janice: Marketing Lead
  • Daniel: Product Lead

Project Links:

Website: https://deri.io

Twitter: https://twitter.com/DeriProtocol

Discord: Deri Protocol

Telegram: Telegram: Contact @DeriProtocol

Docs: https://docs.deri.io/

Github: deri-protocol (deri.io) · GitHub

Contact Information

TG: @im0xAlpha; @JaniceHua

Twitter: https://twitter.com/DeriProtocol

Email: contact@dfactory.tech

Do You Acknowledge That Your Team Will Be Subject to a KYC Requirement?:



Detail the requested grant size, provide an overview of the budget breakdown, specify the funding and contract addresses, and describe any matching funds if relevant.

Requested Grant Size:

1,000,000 $ARB

Grant Matching:

No matching funds

Grant Breakdown:

We have a clear goal for our budget: to expand Arbitrum’s influence widely by drawing in trading users, all while utilizing the advanced i-chain and d-chain architecture of Deri v4. By introducing Orbit Chain, this allows all requests from different i-chains, like Ethereum, zkSync Era, and BNBChain etc., to be smoothly settled on Arbitrum Layer 2, ensuring a seamless trading experience across various blockchains.

Below is our plans to use the grant effectively.

  1. 70% of the grant will be allocated to reducing trading fees for Deri V4.

The objective is to boost user adoption and trading demand, referencing organic market trends.It is important to note that our proposed trade rebate will be based on the users’ actual fees spent, ensuring that the total rebate doesn’t exceed the fees paid.

We plan to use 60% of the budget to rewards people who trade directly on Arbitrum. Another 10% will be used to attract traders from other i-chains. Although these traders may not interact directly with Arbitrum, they still settle their trades on Arbitrum via d-chain, the Orbit Chain. The architecture based on the Orbit Chain facilitates seamless interaction with Arbitrum for users who originally weren’t using it, with the hope of transitioning them into regular Arbitrum users in the future.

  1. 30% of the $ARB rewards will be used to increase yields for the liquidity providers on Arbitrum.

This serve as an incentive for liquidity providers who act as counterparties to traders. Currently, liquidity providers earn real yield in the form of USDC from traders’ transaction fees. By introducing additional $ARB token incentives for LPs, we aim to grow the pool size, accommodate more trading demand, and initiate a positive feedback loop with trading incentives.

Our overall plan is to build a comprehensive ecosystem that attracts and retains both traders and liquidity providers. All ARB grants will be exclusively directed towards developing and enhancing the Arbitrum ecosystem. The Deri Protocol team is committed to creating a sustainable and robust on-chain derivative trading platform on Arbitrum, ensuring its long-term success.

Funding Address:


Funding Address Characteristics:

Multisig with 2 of 3 signing weight

Contract Address:



Clearly outline the primary objectives of the project and the Key Performance Indicators (KPIs) used to measure success. This helps reviewers understand what the project aims to achieve and how progress will be assessed.


The adoption of Orbit Chain as the core of Deri v4’s cross-chain Dapp (xDapp) model stands as a groundbreaking advancement in the blockchain domain, poised to reshape the landscape of DeFi.

By boosting trading volume and guiding traders from various ecosystems to Arbitrum ecosystem, the grant objectives encompass:

  • Championing the adoption of Orbit Chain: Elevating Orbit Chain’s presence and utilization within the blockchain community
  • Extend Arbitrum’s reach beyond its network: help Arbitrum to go across blockchains and position it centrally among all public layer 1s and layer 2s
  • Pioneering Innovation in Cross-Chain Decentralized Derivatives Trading: Steering the evolution of trading across various blockchains in a decentralized manner.

Key Performance Indicators (KPIs):

  • Transaction Fees
  • Daily Active Users

How will receiving a grant enable you to foster growth or innovation within the Arbitrum ecosystem?:

Securing this grant will significantly propel our growth and innovation within the Arbitrum ecosystem. This funding will enable us to:

  • Promote the adoption of Orbit Chain: By the integration of Orbit Chain in Deri V4 cross-chain decentralized derivatives trading, it providing more possibilities and liquidity for decentralized derivatives trading within Arbitrum ecosystem
  • Expand Arbitrum’s influence accross other blockchain ecosystems: Through the cross-chain model, we aim to broaden the impact of Aribtrum across various blockchain ecosystem, establishing a more interconnected and cooperative network
  • Incentivize participation: Through incentive programs, we will attract and retain users form more eocsytems, thereby enhancing the trading volume within Arbitrum ecosystem.

Justification for the size of the grant:

The justification for the size of our grant request is anchored in the comprehensive promotion of our innovative cross-chain decentralized derivatives trading, Deri V4, within and out the Arbitrum ecosystem.

  • User acquisition and retention: Implementing a robust incentive program to attract, educate and retain users.

Execution Strategy:

Execution Strategy for Grant Plan:

Deri V4 Launch on Arbitrum

Objective: The objective of this grant plan is to drive user engagement and trading activity within the Arbitrum ecosystem following the launch of Deri V4.

Products: Deri V4

Use of Funds:

  1. 70% $ARB rewards for traders on Deri V4
  • Rebates will be based solely on actual trading fees incurred by traders during the week.
  • The rebate amount will not exceed the fees paid by traders, ensuring fairness and discouraging any trade-to-earn activities.
  • ARB tokens will be distributed as fee rebates to traders every Friday, reflecting their trading fee expenditure for the week.
  • The fee reduction will be applied to all markets on Deri.io.
  1. 30% LP rewards
  • To incentivize liquidity providers, $ARB incentives will be integrated into the rewards structure.
  • ARB tokens will be distributed to liquidity providers through a smart contract on a linear basis.

Financial Transaparency:

  • All grant funds received will be meticulously allocated for the growth and development of the Arbitrum ecosystem.
  • The Deri team is steadfast in adhering to the outlined plan and will not divert grant funds for any purposes outside of the specified allocation.

Risk management:

Deri Protocol team will closely monitor and prevent wash trading and sybil-attack-related activities from this campaign and ensure the proper usage of funds.

Grant Timeline:

Nov 1st, 2023 - December 31st, 2023

Do you accept the funding of your grant streamed linearly for the duration of your grant proposal, and that the multisig holds the power to halt your stream?



Provide details about the Arbitrum protocol requirements relevant to the grant. This information ensures that the applicant is aligned with the technical specifications and commitments of the grant.

Is the Protocol Native to Arbitrum?:

Yes, Deri V4 will be an xDapp, with its core (d-chain) deployed as an Orbit Chain.

On what other networks is the protocol deployed?:

The i-chain component of Deri V4 will be deployed across leading layer 1s and layer 2s (Arbitrum, zkSync, Ethereum, etc), funnelling all transaction requests to the d-chain segment, the Orbit Chain, for execution. This framework will channel numerous transactions from diverse blockchains to be processed on Arbitrum.**

What date did you deploy on Arbitrum?:

Deri v3: May 5th, 2022.
the event times outlined in the document are purely preliminary and subject to change. The actual duration of the events will be thoughtfully extended based on the real-time distribution of rewards.

Protocol Performance:

Deri Protocol stands as the leading derivative protocol on BNB Chain and zkSync Era and in the top 5 options protocols on Aribitrum.

By October 7, 2023, the following Deri Protocol metrics are

  • Cumulative trading volume on Arbitrum: $12,953,687,190
  • Arbitrum TVL: $1,392,276
  • Historical total users on Arbitrum: 8,178

Protocol Roadmap:

Q4 2023

  • Launch Deri v4 on Arbitrum
  • Support more markets
  • Cross-chain deployment
  • Telegram derivative bot

Long Term

  • Continuourly onboarding organic traders
  • Further optimizing trading experience for traders

Audit History:

Deri Protocol audit report

SECTION 5: Data and Reporting

Provide details on how your team is equipped to provide data and reporting on grant distribution.

Is your team prepared to create Dune Dashboards for your incentive program?:

Yes, Deri team will create a Dune dashboards for the incentive program.

Does your team agree to provide bi-weekly program updates on the Arbitrum Forum thread?

Yes, Deri team will provide bi-weekly program updates on the Arbitrum Forum thread.

Does your team acknowledge that failure to comply with any of the above requests can result in the halting of the program’s funding stream?:


1 Like

The timeline to deliver is way to short for the size of the grant. Also the grant requested in-relation to your current metrics is super high and should be drastically reduced

1 Like

Thank you for sharing your thoughts with us.

Regarding the grant size, Deri Protocol aims to elevate Arbitrum to a more central role among all public Layer 1s and Layer 2s, with the aspiration of transitioning these users into regular Arbitrum users in the future. Therefore, we still believe it’s appropriate to maintain our current strategy.

It’s important to note that the event times outlined in the document are purely preliminary and subject to change. The actual duration of the events will be thoughtfully extended based on the real-time distribution of rewards. We want to assure you that rebates will be scrupulously based only on the actual trading fees that traders incur.

1 Like

Unlisting until Stable Labs gives us direction to make Round 2 Applications Public.