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About DerivaDAO
Key Points
- DerivaDAO is a decentralized exchange (DEX) for derivatives on Ethereum.
- It offers real-time price feed, fast trade resolution, and competitive fee structure.
- Founded by Aditya Palepu and supported by a team of 9, including co-founder Frederic Fortier.
- Backed by investors such as Polychain Capital, Coinbase Ventures, and Electric Capital.
- Unique architecture utilizing a custom layer-two solution for high-frequency trading.
- Total supply of DDX is 100 million, with 50% emitted as part of the genesis supply and 50% over ten years.
- DDX is available on
About DerivaDAO: Empowering a Decentralized Future
Introducing Deriva DAO (DDX): A Revolutionary Decentralized Ecosystem
Deriva DAO is a decentralized exchange (DEX) for derivatives built on the Ethereum blockchain, boasting superior performance attributes that set it apart from other DEXs. These advantages include a real-time price feed, swift trade resolution, and a competitive fee structure. As a decentralized autonomous organization (DAO) from its inception, Deriva DAO empowers its traders and token holders to exert direct control and governance over the platform.
Deriva DAO seeks to bridge the gap between trading and blockchain by tackling the shortcomings of both centralized and decentralized exchanges. By establishing itself as a decentralized autonomous organization (DAO), Deriva DAO mitigates the security vulnerabilities and regulatory hurdles faced by centralized exchanges (CEXs), thereby eliminating censorship concerns and single points of failure. Furthermore, it provides a seamless and capital-efficient user experience, leveraging an order book model that addresses the liquidity and user experience issues inherent in decentralized exchanges. With its innovative off-chain price feeds, high-performance matching engine, and liquidation operators, Deriva DAO promises to rival the speed and efficiency of its centralized counterparts.
The Visionary Founders Behind Deriva DAO
Deriva DAO was established by Aditya Palepu, a distinguished alumnus of Duke University and a seasoned algorithmic trader with a strong background in software engineering. He is ably supported by a team of nine talented individuals, including co-founder Frederic Fortier, a San Francisco-based software engineer with an impressive track record of building distributed systems spanning over a decade.
Deriva DAO has garnered significant backing from a prestigious roster of investors, having successfully closed multiple funding rounds totaling $2.7 million. The esteemed list of investors includes prominent names such as Polychain Capital, Coinbase Ventures, Electric Capital, Dragonfly Capital Partners, CMS Holdings, Three Arrows Capital, Calvin Liu, the strategy lead of Compound, and renowned crypto researcher Phil Daian.
Unveiling the Unparalleled Deriva DAO: A Pioneering Force in Decentralized Governance
Deriva DAO seeks to differentiate itself from the DEX landscape by leveraging a distinctive architecture. Unlike its counterparts, Deriva DAO processes trading and exchange-related transactions not on a public blockchain, but rather on its proprietary DerivaDEX operator network. The DAO oversees two tiers of staked insurance funds, comprising those generated through its insurance mining program and organic insurance funds derived from exchange fees, all within its Layer 2 framework, thereby providing a safeguard against auto-deleveraging for traders.
This bespoke layer-two solution empowers Deriva to rival centralised exchanges in terms of speed and cost. The guarantee of sub-second transaction finality, courtesy of Deriva’s custom L2, facilitates high-frequency trading. Furthermore, users are spared the burden of exorbitant Ethereum gas fees in this scenario.
By leveraging this architecture, Deriva prioritizes the core functionality of a centralized exchange, but in a non-custodial manner. Notably, all funds are securely custodied and protected by the Ethereum network. In contrast to other L2 solutions, such as zk-rollups or optimistic rollups, the centralized order sequencer on Deriva lacks discretionary power over the order flow, unlike traditional centralized exchanges (CEXs). Furthermore, users are spared from the lengthy wait times associated with on-chain transactions, a common drawback of optimistic rollups.
What Is the Circulating Supply of Deriva DAO (DDX) Coins?
The total supply of DDX is capped at 100 million, with a bifurcated distribution model. Half of the tokens, 50 million, are allocated as part of the genesis supply, while the remaining 50 million will be gradually released over a decade as part of the liquidity mining supply. The token allocation for DDX is as follows:
- A total of 34,005,404 DDX, allocated from the genesis supply, are reserved for the team and DerivaDAO foundation, with 21,263,737 units unlocked upon network launch.
- A further 15,334,596 DDX from the genesis supply are earmarked for investors, with a one-year linear vesting schedule.
- An allocation of 660,000 DDX from the genesis supply is designated for advisors, comprising 460,000 units on a two-year linear schedule and 200,000 units on schedules of three months or less.
- As part of the insurance mining program, 2,500,000 DDX from the liquidity mining supply will be emitted linearly over a one-year period.
- The remaining 47,500,000 DDX will be gradually released over a ten-year period.
The Security Architecture of the Deriva DAO Network
Deriva DAO’s smart contracts have undergone rigorous auditing by Quantstamp, yielding a stellar assessment of their quality. The protocol is fortified by Ethereum, a premier blockchain for DAOs, which is in turn secured by a robust proof-of-work consensus mechanism. This mechanism necessitates the mining of new Ether by miners, thereby ensuring the integrity of the network. Furthermore, a network of decentralized nodes validates transactions and provides an additional layer of security to the Ethereum blockchain.
Deriva’s custom L2 solution features a purpose-built sidechain, where operators execute code within trusted execution environments. This ensures that code within this environment remains tamper-proof, and executions within this environment can be verifiably proven. On its sidechain, Deriva leverages Raft and a checkpoint consensus mechanism. Through Raft, operators validate the integrity of orders and other exchange transactions by relaying a hash of the entire exchange state to Ethereum.
Acquiring Deriva DAO (DDX): A Comprehensive Guide to Exchanges and Marketplaces
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