Resolving Liquidity #11: Deri

Resolving Liquidity #11: Deri

It’s time to break the code and take a look into the future with our newest partner Deri.

In the world of DeFi, it's often hard to tell what each partner brings to a collaboration. But in this case, it's easy to see the benefits that both sides offer.

Lack of liquidity has always prohibited protocols and users from getting the most out of their products, here’s how we’re solving this.

Entangle Partners With Deri

Deri is partnering with Entangle to use their Liquid Vaults, which benefits both the platform and all users in different ways.

For Deri, integrating Liquid Vaults adds another layer of earning potential, making their platform more appealing to investors. Attracting more users and increasing overall liquidity on their platform through expanding upon the utility of LP assets.

For users, the process starts by depositing USDC into Stargate, an omnichain liquidity bridge. In return, they get LP Tokens as a receipt. These tokens can then be staked via Entangle to obtain Liquid Vaults. The Vaults optimize LP Token holdings by auto-compounding gains through strategic staking in Stargate yield farms. The protocol automatically harvests farming rewards and re-invests them into additional LP Tokens, amplifying your yield over time.

The benefit doesn't stop there. Users can take these Liquid Vault and stake them on Deri's platform. By doing so, they can earn even more through additional annual percentage yield (APY)  in the form of "DERI" tokens, of the Deri Protocol. DERI tokens come from the trading fees generated by the Liquid Vault activity. Now users get multiple ways to increase their investment returns, making it a win-win situation for everyone involved. With the seamless integration of Liquid Vaults, ecosystem participants can now leverage Deri's innovative new product offerings for enhanced benefits.

A Reliable Pricing Mechanism

One of the major challenges for Deri has been sourcing reliable price information in order to accept LP Tokens and Liquid Vaults as collateral. Traditional on-chain price feeds from decentalized exchanges (DEXs) can easily be manipulated, making them less reliable. Hence Deri wasn’t able to accept LP Tokens before.

Enter Entangle’s Oracle Solution.

Entangle, however, aggregates hybrid TWAP price-feeds based on different prices and volumes from both DEXs and centralized exchanges (CEXs). This produces a weighted average that allows Deri to accept yield-bearing tokens such as Liquid Vaults for collateral.

The Importance of Liquidity for Deri

Liquidity is the lifeblood of any financial market, and Deri is no exception. To create a dynamic and user-attractive marketplace, Deri needs ample liquidity to balance long and short trading positions. It also allows users to leverage their trades, making the platform more lucrative for active traders. By integrating with Entangle’s Liquid Vaults, Deri gains a reliable source of liquidity, enriching the platform’s offerings.

The Multiplier Effect: How Users Benefit

By using both Entangle and Deri, users can effectively double dip into APY earnings. They would not only receive the yield from Stargate but also earn additional rewards in DERI tokens. These tokens are equivalent to trading fees, which could be transaction fees, funding fees, or market-maker fees. This integration, therefore, widens the range of Total Value Locked (TVL) that Deri can access, making it a more robust and diversified platform.

Here’s a user journey outlining how we’re enabling this:

1) User provides USDC to Stargate and obtains LP Tokens in return.

2) User stakes LP Tokens via Entangle -

Entangle stakes and autocompounds LP Tokens in a yield-farm on Stargate.

User is given a Liquid Vault in return as a receipt of staked LP Tokens.

3) User can now super-charge yield by staking the Liquid Vault on Deri Protocol

4) Users obtain APY% from Stargate in addition to APY% from Deri - Deri can now access a much larger variety of TVL and expand on their great product offerings!

Synergistic Future

In conclusion, the synergy between Deri and Entangle is poised to redefine yield optimization strategies in DeFi. Deri users stand to gain a much-enhanced yield through multi-layered staking opportunities, while also benefiting from a more secure and fair pricing mechanism. For Deri, the integration allows for a significant enhancement in its liquidity and asset offerings. Both entities, thus, mutually thrive in this innovative ecosystem, pushing the frontier of what's possible in decentralized finance.

About Deri

Deri Protocol is the DeFi way to trade derivatives: to hedge, to speculate, to arbitrage, all on chain. With Deri Protocol, trades are executed under AMM paradigm and positions are tokenized as NFTs, highly composable with other DeFi projects.

About Entangle

Liquidity Resolved.

The interoperable layer that enables web3 DApps and protocols to scale with omnichain liquidity.