In the DeFi market, Deri Protocol is poised to take a substantial step forward with the launch of Deri V4. As detailed in the 2023 roadmap, this newest version is set to transform the decentralized finance (DeFi) sector by incorporating the Cross-Chain Decentralized Application (xDapp) model. This groundbreaking innovation is designed to boost inclusivity, optimize capital efficiency, and elevate user experience in the DeFi derivatives arena.
The All-Chain Strategy & xDapp Architecture
Deri V4 is built upon the xDapp model, a unique form of decentralized application that functions across various blockchains. This inventive strategy surpasses the constraints of conventional Dapps, introducing a fresh degree of interoperability and amalgamation within the blockchain domain.
The structure of Deri V4 is composed of two primary elements: a request-interface and an execute-engine, both of which are realized as groups of smart contracts. The request-interface, also known as the “front-end” of the structure, handles all user requests, such as order submissions, margin deposits or withdrawals, and liquidity insertions or extractions. These requests are subsequently transferred to the execute-engine, the “back-end” of the structure, for processing.
This distinct separation enables the components to be deployed across various blockchain networks. The intention is to establish multiple request-interfaces on all major blockchain networks while preserving a singular execute-engine, a tactic known as the “all-chain strategy.”
The incorporation of the xDapp architecture in Deri V4 is designed to tackle the prevalent problem of liquidity fragmentation seen in many DeFi protocols. With this innovative architecture, liquidity from diverse blockchain networks is consolidated into a single pool, enhancing capital efficiency and offering traders superior liquidity.
In Deri V4, all liquidity providers, irrespective of the blockchain network they operate on, contribute to a single, consolidated pool. This pool is then accessed by all traders, again, regardless of their blockchain network. This marks a considerable departure from Deri V3, where liquidity pools on different blockchain networks were separate and fragmented. Consequently, Deri V4 can offer a more substantial liquidity pool and a more streamlined trading experience for its users.
Bridging Liquidity Across Chains: The Future of DeFi
Deri V4 capitalizes on the cross-chain capabilities of xDapps to facilitate liquidity exchange among various blockchains. This boosts capital efficiency by permitting a wider array of assets to be utilized within the Deri ecosystem. By assimilating this cross-chain functionality, Deri V4 broadens the scope of its services, allowing users from diverse blockchain networks to engage with the protocol. This inclusiveness is anticipated to draw a varied user base, thereby nurturing a more dynamic and resilient DeFi ecosystem.
Even with the introduction of cross-chain functionality, Deri V4 steadfastly upholds its foundational DeFi principles. It persists in functioning as a sequence of smart contracts deployed on the blockchain, guaranteeing that risk-exposure transactions remain on-chain, transparent, and secure. Deri V4 maintains its support for four primary derivative types: Perpetual futures, Everlasting Options, Power Perpetuals, and Gamma Swap while broadening the reach of these derivatives across an expanded range of blockchain networks.
As the Deri Protocol shifts towards the xDapp model, Deri V4 stands ready to deliver a host of significant benefits. These encompass a larger user base, consolidated liquidity, enhanced performance, and greater extensibility and composability. With Deri V4, the “lego gameplay” characteristic of DeFi projects is expected to ascend to unprecedented levels, further cementing Deri Protocol’s status as a frontrunner in the DeFi derivatives sector.
As an xDapp, Deri Protocol V4 embodies an innovative approach to DeFi derivatives, showcasing the possibilities of cross-chain applications and playing a significant role in the continuous advancement of the DeFi sector. The team at Deri Protocol eagerly anticipates this venture and is keen to share further insights about Deri V4 as its development unfolds.
