- Product Positioning
What problem is the team trying to solve?
DeFi began with the invention of Uniswap AMM and reaches its peak. However, after two years, AMM has hardly made any progress, and the entire DeFi ecosystem seems to be stuck and unable to move forward. We believe the inefficiency of LP is causing the entire ecosystem to be stuck. So, we build Derivio to address this challenge by integrating all derivative products into a simple and elegant platform, thereby solving the problem of LP inefficiency, and becoming the foundation for driving the ecosystem based on the composability and pure returns of DeFi products.
We notice that there are four major challenge for investors
First, they have no choice but face many market risks, these include the downside risk when the price of coin goes down, and the upside risk caused by being short squeezed, and more volatility risk in the market. The most important one is the liquidity risk, when there are too few people take part in, it cause the liquidity risk. However, most investors cannot deal with this situation and lose their money eventually.
It’s too bad that the information of many DeFi product is not only difficult to understand, but also hard to use for users. The user experience is really terrible. Moreover, we notice that the lack connection between crypto assets and traditional finance, users hardly get the return of investments, and not to mention want to stay in crypto investment in the long term.
That's why our mission is to enable everyone in DeFi to apply investing strategies as they wish
What is the product's positioning?
Our mission is to enable everyone in DeFi to apply investing strategies as they wish.
Our product is positioned as a high-level derivative financial protocol. Derivio is not just a product, but also serves as the foundation for expanding the ecosystem! For C-end users, they can easily complete their investment strategies with just one click on our website and track their risk and return status clearly. For B-end users, they can use our high-level API interface to connect to our protocol and create more extensive applications in an innovative way.
Our product is related to derivative financial products, but it's important to note that we're not an options provider. Instead, we offer a type of financial product that is structured and combined in a unique way.
Why is the product called Derivio?
This word is from "Derivative." We integrate the protocols of the leading DeFi liquidity pool, and combine hedging and quantitative trading skills to practice many profit and loss curves. Moreover, by integrating layered components, we stack these PnL curves into high-level financial products.
We also believe that Derivio should be easily understandable and usable for anyone, whether inside or outside the crypto community, the product can meet many investment strategies. Therefore, Derivio is not only built for DeFi traders but also for international investors.
How is the LeapFi brand designed and positioned?
As we've emphasized, LeapFi's vision is to enable everyone to construct various investment strategies in DeFi and achieve their expectations! The logo combines geometric blocks with a deer symbolizing wisdom, representing the team's deep understanding of financial engineering and smart contracts. The beautiful image of the deer, combined with a friendly brand color, allows users to feel the warmth of the product.
LeapFi not only represents a "leap forward" in the financial field but also represents the meaning of "leadership." LeapFi will become a brand that leads the advancement of DeFi and promotes the development of the DeFi ecosystem.
- Derivio protocol
DerivioAL
Am I risk-free after using this product?
No, we have optimized and visualized the PnL risk before you open an LP position. Therefore, you are responsible for your own decision.
How much fee charged using this product?
Derivio is free of charge because we aim to build a product that significantly lowers the barrier to using DeFi services. Additionally, we provide auto stop loss, breakeven, and trailing stop functionality once you become a LEAP token holder.
What's the risk in hedging the ETH delta in Uniswap V3 USDC-ETH LP?
A short position in the future from another protocol may pose a risk of liquidation or cause a delay in the execution of the open/close position.
DerivioVS
What's the risk of Curve LLAMMA?
The LLAMMA mechanism's liquidation range causes equity decay, and based on the curve simulator, a market price dip will result in a 1% equity decay.
What's the risk in hedging the ETH delta in Curve LLAMMA?
A short position in the future from another protocol may pose a risk of liquidation or cause a delay in the execution of the open/close position.
Is Curve LLAMMA released?
They haven't released it yet, even though they originally stated it would be released in January 2023.
How does Curve LLAMMA differ from traditional margin trading?
Curve LLAMMA uses locked liquidity to minimize the risk of liquidation for leveraged positions, while traditional margin trading relies on a margin call or forced liquidation. This makes LLAMMA more accessible and user-friendly for traders. Additionally, LLAMMA uses an automated market maker to keep prices stable, which reduces the risk of slippage for traders.
Margin Resservoir
Can I use leverage in this item?
Of course! Margin Reservoir is one of the protocols that our team plans to operate in the future. It's designed as a funding pool to match borrowers and lenders, and allows users to open Derivio positions that are 1-3 times greater than their deposited margin.
When users who want leverage borrow from Margin Reservoir, lenders can charge esLeap as interest. If the user's Derivio position drops below the maintenance margin, the protocol will introduce off-chain liquidation robots to settle the position and avoid losses for the lenders.
We designed this to allow users to increase their capital utilization and attract users who want fixed income to deposit their USD, just like bond.
- Derivatives, Competitors, and Ecosystems
Is Derivio an option? If not, why?
We offer derivative financial products, but we are not options! Options have clear exercise, obligation, premium relationships, and volatility models. The buyer and seller are ounterparty in the contract or liquidity pool. However, Derivio only builds products on the pool of the leading protocol to create different profit and loss structures to meet customer needs, and does not have these relationships. For users, they only need to deposit a sum of money to achieve a certain profit and loss requirement and can withdraw funds at any time. It's that simple.
What are the benefits of Derivio not being an option?
There are many benefits to Derivio!
First, since Derivio is not an option, we do not have issues with exercise and expiration dates, nor do we have margin obligations for option sellers. For users, they only need to deposit money to achieve a certain profit and loss goal, and they can withdraw their funds at any time, it's that simple.
Second, traditional options or other protocol teams mostly use the concept of contracts or liquidity pools to match buyers and sellers, which leads to liquidity risks and operational difficulties due to a lack of initial users. Derivio directly uses the largest liquidity pools such as Uniswap v3 and Curve as the basis and completes profit and loss goals through hedging technology, which significantly reduces liquidity risks and improves the efficiency of funds!
Third, the biggest advantage of options is that they can trade "volatility" and "time." When the volatility is higher, the implied volatility will be higher, the option premium will rise, and the investor's entry and exit prices will be more affected by the market. The longer the time, the higher the entry cost for buyers or the opportunity cost for sellers, and investors must consider the expiration date to make decisions. However, with Derivio, none of these issues need to be considered. Derivio is a purely derivative structured product that can create any profit and loss structure at any time.
Finally, users can complete investments without understanding the knowledge of options, which reduces the entry threshold. This is our biggest advantage! We enable everyone in DeFi to apply investing strategies as they wish.
What are the advantages of the product?
Traditional options or other protocol teams mostly use the concept of contracts or liquidity pools to match buyers and sellers, which leads to liquidity risks and operational difficulties due to a lack of initial users. Derivio directly uses the largest liquidity pools such as Uniswap v3 and Curve as the basis and completes profit and loss goals through hedging technology, which significantly reduces liquidity risks and improves the efficiency of funds!
How is your protocol different from similar ones?
In the current DeFi, most teams innovate to solve "point" problems, such as improving efficiency by adjusting the mathematical formulas of the AMM model or reusing the concept of liquidity pools to construct a derivative product market by matching buyers, sellers, market makers, and liquidators.
In contrast, LeapFi focuses on "surface" problems and real user needs. We directly build on the protocol with the highest liquidity and construct non-linear profit and loss structures to solve the problem of insufficient liquidity for new teams. We focus on user perspectives: what kind of products can truly become tools for investment decision-making? How can we enable users to make decisions on secure and liquid product experiences without discussing complex mathematical formulas?
Only by choosing this product positioning can we stand on the shoulders of giants with users and use Derivio to build more advanced financial product.
In the current DeFi, many teams are building applications for options and there are many excellent solutions. This is often how we are compared to our competitors. However, our product is not an option. Our financial experts believe that options should have rigorous strike prices, obligations, premiums, and support for volatility models. Therefore, our positioning is a derivative structural product. Users only need to know what value our non-linear profit and loss structure can bring to them and how to construct higher-level strategies. More detailed technical or financial model discussions will be organized in official documents!
- Leaponomic
What is LEAP?
LEAP is the native platform token for LeapFi. LEAP can be staked on LeapFi to earn a share of revenues. Platform fees would be retured to LEAP stakers, and they will also have voting right. Tokenized as esLEAP before being given to LEAP stakers, then linearly unlock esLEAP to LEAP in 1 year. More rewards for longer staking.
Can I stake my LEAP ?
Yes , after staking LEAP in our vault, you will receive esLeap back as a proof of stake. Your esLEAP will also give you a portion of protocol revenues, You can proceed to lock your LEAP on the Governance portal .
What incentivize users to stake Leap token?
There are many ways to encourage our user to stake the LEAP token. First, LEAP is a governance utility token, you are a shareholder of this protocol and have voting right if you stake LEAP. Also, the more LEAP you stake , the more share of protocol revenue you will get.
Do I have to lock my Leap for 1 years to get reward?
No, 1 years is the maximum lock up duration. the longer you lock , the more reward you will received.
Will there be any airdrop plan?
Yes , stay tuned with LeapFi. We plan to have a series campaign during 2023 Q4. You can join our discord for the latest announcement.
If I lock LEAP for X time and then decide to extend the lock up, will I be able to do so?
Yes, you can extend the lock up period.
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last update on March 14th, 2023