Deriva DAO is a decentralized exchange (DEX) for derivatives on Ethereum. It offers several advantages over other DEXs, such as a real-time price feed, fast trade resolution, and a competitive fee structure. Deriva DAO is unique because it is governed by its traders and token holders, making it a decentralized autonomous organization (DAO).

The goal of Deriva DAO is to address the issues faced by both centralized and decentralized exchanges. By building as a DAO, it eliminates concerns about weak security, potential regulatory issues, censorship, and single points of failure. Additionally, it provides a performant and capital-efficient user experience by using an order book model that improves liquidity and user experience. With off-chain price feeds, matching engine, and liquidation operators, Deriva DAO aims to match the speed and efficiency of centralized exchanges.

Deriva DAO is a decentralized exchange (DEX) for derivatives on Ethereum. It offers key performance advantages over other DEXs, such as a real-time price feed, fast trade resolution, and a competitive fee structure. As a DAO, Deriva DAO's traders and token holders have direct control and governance over the platform.

Deriva DAO aims to address the problems faced by centralized and decentralized exchanges at the intersection of trading and blockchain. By building as a DAO, it solves weak security and potential regulatory issues faced by CEXs, removes censorship concerns, and eliminates a single point of failure. With its order book model, off-chain price feeds, matching engine, and liquidation operators, Deriva DAO matches the speed and efficiency of centralized exchanges while providing a performant and capital-efficient user experience.

Deriva DAO was founded by Aditya Palepu, a Duke alumnus and former algorithmic trader with experience in software engineering. He is supported by a team of nine, including co-founder Frederic Fortier, a San Francisco-based software engineer with over a decade of experience building distributed systems.

Deriva DAO has received support from notable investors, including Polychain Capital, Coinbase Ventures, Electric Capital, Dragonfly Capital Partners, CMS Holdings, Three Arrows Capital, Calvin Liu (the strategy lead of Compound), and crypto researcher Phil Daian.

Deriva DAO stands out from the DEX crowd by utilizing a unique architecture. It handles trading and other exchange-related transactions not on a public blockchain but its DerivaDEX operator network. The DAO manages staked insurance funds from its insurance mining program and organic insurance funds from its exchange fees on this L2 to backstop traders against auto-deleveraging.

This custom layer-two solution allows Deriva to compete with CEXs on speed and cost. It achieves sub-second transaction finality, guaranteeing high-frequency trading and eliminating high Ethereum gas fees. Deriva focuses on enabling the core functionality of a centralized exchange in a non-custodial manner, with all funds custodied and secured by the Ethereum network.

The total supply of DDX is 100 million. 50% is emitted as part of the genesis supply, and 50% will be emitted over ten years as part of the liquidity mining supply. DDX has the following token allocation:

• 34,005,404 DDX from the genesis supply are allocated to the team and DerivaDAO foundation. 21,263,737 are unlocked upon network launch.
• 15,334,596 DDX from the genesis supply are allocated to investors on a one-year linear schedule.
• 660,000 DDX from the genesis supply are allocated to advisors. 460,000 DDX on a two-year linear schedule, 200,000 DDX on schedules of three months or less.
• 2,500,000 DDX from the liquidity mining supply will be emitted linearly over one year as part of the insurance mining program.
• The remaining 47,500,000 DDX will be emitted over ten years.

Deriva DAO's smart contracts have been audited by Quantstamp and found to be of high quality. The protocol is secured by Ethereum, one of the most popular blockchains for DAOs, and secured by a proof-of-work consensus mechanism. A set of decentralized nodes validates transactions and secures the Ethereum blockchain.

Deriva's custom L2 solution is a purpose-built sidechain of operators executing code within trusted execution environments. This ensures code integrity and execution proofs. The sidechain utilizes Raft and a checkpoint consensus mechanism, where operators relay a hash of the entire state of the exchange to Ethereum, ensuring the validity of orders and other exchange transactions.

DDX is available on Coinbase Exchange, Uniswap (V2), Sushiswap, Hoo, and CoinEx.