## What Is Deriva DAO (DDX)?

[Deriva DAO](https://coinmarketcap.com/currencies/derivadao/) is a decentralized exchange ([DEX](https://coinmarketcap.com/alexandria/de/glossary/decentralized-exchange-dex)) for [derivatives](https://coinmarketcap.com/alexandria/glossary/derivatives-market) on [Ethereum](https://coinmarketcap.com/currencies/ethereum/). It prides itself on offering key performance advantages over other DEXs like a real-time price feed, fast trade resolution, and a competitive fee structure. By being a [DAO](https://coinmarketcap.com/alexandria/glossary/decentralized-autonomous-organizations-dao) from the beginning, Deriva DAO’s traders and token holders directly control and govern the platform. 

Deriva DAO aims to fill the void at the intersection of trading and blockchain by addressing the problems faced by other centralized and decentralized exchanges. Deriva solves the weak security and potential regulatory issues faced by [CEX](https://coinmarketcap.com/alexandria/glossary/centralized-exchange-cex)s by building as a DAO, thereby removing censorship concerns and a single point of failure. It also offers a performant and capital-efficient user experience with an [order book](https://coinmarketcap.com/alexandria/glossary/order-book) model that addresses the liquidity and UX issues of decentralized exchanges. With its off-chain price feeds, matching engine, and liquidation operators, Deriva DAO promises to match the speed and efficiency of centralized exchanges. 


## Who Are the Founders of Deriva DAO?

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 is also supported by an impressive array of investors after closing several rounds for a total of $2.7 million. On the investor list are names such as Polychain Capital, Coinbase Ventures, Electric Capital, Dragonfly Capital Partners, CMS Holdings, Three Arrows Capital, Calvin Liu (the strategy lead of [Compound](https://coinmarketcap.com/currencies/compound/)), and crypto researcher Phil Daian. 


## What Makes Deriva DAO Unique?

Deriva DAO aims to stand out from the DEX crowd by utilizing a unique architecture. Unlike other exchanges, Deriva DAO handles trading and other exchange-related transactions not on a public blockchain but its DerivaDEX operator network. The DAO manages two tranches of staked insurance funds from its insurance mining program and organic insurance funds from its exchange fees on this L2 in order to backstop traders against auto-deleveraging. 

This custom layer-two solution allows Deriva to compete with CEXs on speed and cost. High-frequency trading is only possible if sub-second transaction finality is guaranteed, which Deriva achieves through its custom L2. Moreover, users do not have to bother with high Ethereum [gas](https://coinmarketcap.com/alexandria/glossary/gas) fees in this case. 

Using this architecture, Deriva focuses on enabling the core functionality of a centralized exchange in a non-custodial manner. All funds are custodied and secured by the Ethereum network. In contrast to other L2 solutions like [zk-rollups](https://coinmarketcap.com/alexandria/glossary/zero-knowledge-rollups) or [optimistic rollups](https://coinmarketcap.com/alexandria/glossary/optimistic-rollup), the centralized order sequencer has no discretion over the order flow on Deriva (like they would on a CEX) and users don’t suffer from long wait times for on-chain transactions (in case of optimistic rollups).  


## Related Pages:

Check out [dYdX (DYDX)](https://coinmarketcap.com/currencies/dydx/) — one of the most popular decentralized exchanges.

Check out [Idex (IDEX)](https://coinmarketcap.com/currencies/idex/) — a decentralized exchange for trading futures.

Read our [deep dive about decentralized liquidity pools.](https://coinmarketcap.com/alexandria/article/decentralized-liquidity-pools-a-deep-dive-with-finnexus-options)

Get the latest crypto news and latest trading insights with the [CoinMarketCap blog](https://coinmarketcap.com/alexandria/categories/blog).


## How Many Deriva DAO (DDX) Coins Are There in Circulation?

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 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


## How Is the Deriva DAO Network Secured?

Deriva DAO’s [smart contracts](https://coinmarketcap.com/alexandria/glossary/smart-contract) 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 ](https://coinmarketcap.com/alexandria/glossary/proof-of-work-pow)consensus mechanism that requires miners to mine new Ether. A set of decentralized nodes validates transactions and secures the Ethereum blockchain.

Its custom L2 solution is a purpose-built sidechain of operators executing code within trusted execution environments. This guarantees that code within this environment cannot be tempered with, and executions in this environment can be proven. On its sidechain, Deriva utilizes Raft and a checkpoint [consensus mechanism](https://coinmarketcap.com/alexandria/glossary/consensus-mechanism). In Raft, operators ensure that orders and other exchange transactions are valid by relaying a hash of the entire state of the exchange to Ethereum. 


## Where Can You Buy Deriva DAO (DDX)?

DDX is available on [Coinbase Exchange](https://coinmarketcap.com/exchanges/coinbase-exchange/), [Uniswap (V2)](https://coinmarketcap.com/exchanges/uniswap-v2/), [Sushiswap](https://coinmarketcap.com/exchanges/sushiswap/), [Hoo](https://coinmarketcap.com/exchanges/hoo/) and [CoinEx](https://coinmarketcap.com/exchanges/coinex/). 


DerivaDAO

Trust Wallet

MetaMask

Ethereum

Shiba Inu

Chainlink

UNUS SED LEO

Uniswap

YAM V3

InsurAce

Bistroo

Virtual Versions

MAX Exchange Token

Attila

Hakka.Finance

UBIX.Network

Drep [new]

Pussy Financial

Gaga (Pepe)

Houdini Swap

Index Cooperative

StakeWise Staked ETH

Open Platform

Function X is mirroring traditional financial products on the Function X network and creating decentralized financial products and a decentralized trading system. It is a highly customizable and expandable multi-chain architecture blockchain network (subnets) that can meet different business needs.

Function X

Fei protocol is a DeFi native algorithmic stablecoin. The aim of Fei is to propose a technological solution in a sweet spot between rigid overcollateralized decentralized stablecoin and centralised custodial stablecoins.

Fei Protocol runs on two crypto assets: FEI stablecoin and TRIBE governance token.

FEI is aimed to be a more capital efficient and fully decentralized stablecoin. The protocol uses the value it controls to maintain liquid secondary markets and earn yield for the protocol.

The project was founded in December 2020 and immediately attracted significant interest in the crypto community. It resulted in $19 million VC investment in early March 2021. Among the names that have entered this project are Andreessen Horowitz (a16z), Coinbase Ventures, Nascent and Framework Ventures.

There were some issues with the peg in the original mechanism, but through a series of governance upgrades the protocol recovered in the months following launch.

Fei v2 intends to be a major upgrade for the system and will launch in late 2021. It features 1:1 redeemability for FEI against protocol reserves, TRIBE buybacks and backstop, and algorithmic protocol controlled value management.

Fei USD

Aergo describes itself as an open-source enterprise blockchain platform optimized for hybrid deployments, which consist of both permissioned and permissionless blockchain architectures. It includes support for SQL allowing for easy data handling and familiar smart contract programming for developers.

The platform is built and utilized by Blocko, the Samsung-backed South Korean blockchain technology company that, according to Korean media sources, has deployed production blockchain solutions for large-scale clients including Lotte Card, Shinhan Bank, Korea Exchange, Hyundai Motors, and more.

Aergo

xDai is a cryptocurrency that is pegged to the US dollar. The xDai chain is a stable payment blockchain that is designed for fast and inexpensive transactions. STAKE is secured by proof-of-stake consensus. xDai was founded on Oct. 1, 2018.

STAKE is a multi-chain staking token that is designed to secure the payment layer. Staking allows validators and delegators to provide transaction consensus and receive staking incentives for block production. It is only required for consensus providers, not everyday on-chain transactions.

xDai was created by the POA Network, an open-source public side-chain of Ethereum founded in April 2017. It offers a framework for smart contracts which provides developers with an easy and effective way to code on Ethereum, while also leveraging the POA Network capabilities.

STAKE

EOSDT

Radworks

Kleros (PNK) is a decentralized dispute resolution project that launched in July 2018. It is an open-source online dispute resolution protocol that uses blockchain and crowdsourcing to adjudicate disputes fairly.

Kleros offers a middleman service for decentralized applications (DApps) and their users. If the service provided by the application does not create a dispute, Kleros acts as a trustless third-party service for payment.

When a dispute does occur, however, each party can apply for arbitration through the Kleros arbitrators that are selected from the owners of PNK tokens. PNK is an Ethereum-based ERC-20 utility token with a fixed supply.

At this point, the jurors can make a decision that will favor either party. The arbitration fees are distributed to all arbitrators in the form of ETH; jurors who have issued a minority decision lose part of their PNK tokens for the benefit of the majority of jurors. This decision can be appealed, at a cost. The stated mission of Kleros is to offer easier access to justice and improve individual freedom.

Kleros charges a cost that is payable in ETH and is provided by the parties to the dispute or drawn from the funds previously locked in escrow.

Kleros

Kryll

Jinbi Token

QuickSwap [Old]

Enzyme

TranslateMe Network Token

OTCBTC Token

Populous is a network designed to offer small and medium-sized enterprises (SMEs) invoice liquidity for up to 90 days. Launched in 2017, Populous is designed to enable peer-to-peer (P2P) interaction between enterprises, boost liquidity and solve problems with working capital for SMEs.

By relying on blockchain technology and smart contracts, the Populous network facilitates decentralized communication between businesses and allows them to share liquidity pools. According to the network’s official whitepaper, there is a need for liquidity in the sector, and Populous is trying to bring the solution. By providing short-term liquidity to enterprises through P2P lending, the network gives enterprises quick access to capital, which cannot be achieved by waiting for customers to settle invoices.

Populous

Future1coin

AirSwap

Golden Token

Validity

Opium is a new platform for launching and trading cryptocurrency derivatives.

Having begun operations in May 2020, Opium uses Ethereum to run a decentralized derivatives marketplace in which any cryptocurrency owner can participate.

The aim of the platform is to democratize access to financial derivatives while using the benefits that decentralization affords traders over legacy alternatives.

Opium’s in-house token, OPIUM, launched in January 2021 and will fulfil various roles mostly centered around platform governance. Active users will be able to vote on some of the most important decisions involved in the platform’s operations.

Opium

Adventure Gold (AGLD) is the native ERC-20 token of the Loot non-fungible token (NFT) project. Loot is a text-based, randomized adventure gear generated and stored on-chain, created by social media network Vine co-founder Dom Hofmann. The project intentionally has no front-end interface, images, statistics or functionality. Instead, it is based on a set of 8,000 text-based NFTs open to how the community wants to interpret it. The NFTs contain texts of gears ranging from the “Holy Greaves of Giants” to the “Grim Shout.” As of Sept. 8, 2021, the floor price of Loot on OpenSea is 8.56 ETH. Numerous derivative projects are being built around Loot and can be found here.

Adventure Gold was launched on Sept. 2, 2021, and allowed each owner of a Loot NFT to claim 10,000 tokens for free. With the price of AGLD skyrocketing in the initial days of trading, this airdrop was worth as much as $70,000 per NFT. AGLD founder Will Papper claimed he wanted to set a standard for projects building on Loot by providing a currency for the decentralized gaming universe.