Introduction

Derion is the first Perpetual Automated Market Maker (AMM) Protocol, enabling compound leverage trading of any price index with no liquidation and smooth deleveraging curves.

The White Rabbit

Uniswap has pioneered the development of AMM DEX, innovating a completely new spot trading mechanism and market-making system based on the blockchain technology. Different from the traditional spot trading models based on order-book, AMM DEX allows users to trade assets seamlessly with automated market making, infinite liquidity, all in a permissionless and decentralized manner. Since the emergence of Uniswap, myriads of cryptocurrency markets have been formed atop, generating a Decentralized Finance (DeFi) ecosystem more vibrant than ever.

Regardless of how incredible Uniswap was, the innovation stops at spot trading. While most AMM DEXes continue to follow and develop the Uniswap’s approach of spot trading, there has been no similar product (AMM DEX) for derivatives trading.

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For DeFi to keep thriving, additional financial products have been brought onto the scene alongside AMM DEX. It can be easily witnessed that one of the most popular DeFi products nowadays is derivatives (options, futures, perpetuals,..). While derivatives play an important role in the DeFi ecosystem, most DeFi derivatives products follow the traditional approach of unique-position and counterparty market-making. Even though we understand that it is highly challenging to construct the original model on-chain while still maintaining efficiency as well as decentralization, the model itself is neither appropriate nor optimal for DeFi usages, to even start with in the first place

Inspired by Uniswap’s groundbreaking invention, we introduce the Derion protocol, which follows a first-principle approach to disrupt conventional models of derivatives trading and market making based on unique position and order-book exchanges. With the innovation of Asymptomatic Power Curves and compound leverage, Derivable can change the DeFi derivatives trading market, similar to how Uniswap innovated the spot trading scene.

The part below will give you an introduction to how Derion works and our solutions to the existing pain points of current DeFi derivatives products.