What Is Deriva DAO (DDX)?
DDX is the native token of Deriva DAO, which is an Ethereum-based decentralized derivatives exchange. Deriva DAO provides users with high-frequency trading, which is made possible by achieving sub-second transaction finality. Besides, it has a chart that shows real-time derivative prices. Though if you want to see the live DDX price, check out the Deriva DAO price chart featured above.
The Deriva DAO exchange is not like most exchanges because it employs its own DerivaDEX operator network to manage the trading process, instead of a certain public blockchain. DerivaDEX is a custom Layer 2 sidechain that consists of operators executing code and validating transactions. Since the DerivaDEX network employs Raft, operators have to send hashes of complete exchange state to Ethereum in order to prove that orders and transactions are valid.
Besides that, the DerivaDEX network is also responsible for managing two types of security funds – staked insurance funds and organic funds. They are used to protect traders against auto-deleveraging.
Furthermore, to solve user experience and liquidity issues that some other DEXs face, Deriva DAO uses an order book system. An order book is a tool that displays a list of active orders for a specific asset in real time. Order books include an area for bidding and asking, a list of buyers and sellers, and other details on the trading of that specific asset.
All in all, Deriva DAO manages to provide users with a non-custodial centralized exchange functionality. However, the order flow on Deriva is not under the control of a centralized order sequencer as it would be the case with a centralized exchange.
Besides, it’s important to note that the Ethereum network serves as the custodian and security provider for all of Deriva's funds. In addition to that, Quantstamp audits Deriva’s smart contracts.
Who Founded Deriva DAO?
The Deriva DAO was founded by Aditya Palepu. He has a degree in electrical and computer engineering. Before founding Deriva DAO, he was a credit trading summer analyst at J.P. Morgan, an algorithmic trader at DRW, and a software engineer at Enigma. Besides, he was an explorer intern at Microsoft at a certain point during his studies.
Use Cases of DDX Tokens
The main purpose of DDX tokens is governance, since Deriva is governed using a model of a decentralized autonomous organization (DAO). This means that DDX holders have the right to vote on upcoming changes to the Deriva DAO crypto project.
However, besides that, DDX tokens can be used for staking (this way earning more DDX tokens) and for reducing transaction fees. In terms of staking, Deriva enables insurance mining, which means that users help raise funds for the Deriva insurance fund by staking DDX tokens.
Tokenomics of DDX
The max supply of Deriva DAO tokens is 100 million. Half of it was distributed between the team, the Deriva DAO foundation, investors, and advisors, while the other half will be distributed through liquidity mining.
If you’re considering investing in Deriva DAO coins, make sure to analyze the DDX price chart featured above. This will help you determine the main changes in the Deriva DAO price and make more informed purchasing decisions.
