## 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

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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.

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Bora is a decentralized ecosystem for games and entertainment. Bora aims to attract games and applications from the GameFi sector to its Bora Chain to avoid building on blockchains like Ethereum that have high gas fees. For that reason, Bora follows a two-tiered blockchain system: the BORA token is traded on the Klaytn blockchain, a public blockchain that is focused on metaverse and gaming use cases. The Bora chain is a modular blockchain that can be used as an execution layer by decentralized applications.

The Bora team provides development toolkits that support developers with creating decentralized applications for its ecosystem. It also utilizes Bora Points, a currency within the ecosystem as a resource for development and to incentivize contribution to Bora. Bora Points can subsequently be converted to the BORA token.

BORA

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MIR is the governance token of Mirror Protocol, a synthetic assets protocol built by Terraform Labs (TFL) on the Terra blockchain.

Mirror Protocol is decentralized from day 1, with the on-chain treasury and code changes governed by holders of the MIR token. TFL has no intention of keeping or selling MIR tokens, and there are no admin keys or special access privileges granted. The intent for this is to be a completely decentralized, community-driven project.

Mirrored assets are blockchain tokens that behave like "mirror" versions of real-world assets by reflecting the exchange prices on-chain. They give traders the price exposure to real assets while enabling fractional ownership, open access and censorship resistance as any other cryptocurrency. Unlike traditional tokens which serve to represent a real, underlying asset, mAssets are purely synthetic and only capture the price movement of the corresponding asset.

Mirrored assets provide the following advantages:

Global Accessibility: In most markets outside of Europe & North America, access to foreign equities and forex markets is highly limited. Crypto allows global accessibility without entry barriers.

Fractional Orders: In traditional finance, to execute a fractional order, multiple fractional orders are bundled together to execute a unitary transaction. The process of gathering all the orders into one requires additional waiting time. By utilizing the blockchain, orders volume is simply represented as a number on the blockchain, so there is no need for the intermediary bundling process.

Nearly-Instantaneous Order Execution: Oftentimes due to the lack of liquidity (price-time-priority order book algorithm), orders can take up to a day to fully execute. Given the fact that Mirror relies on liquidity provided by each individual asset pool, orders can be executed as fast as the blocktime of the network (~ 6 seconds).

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With Ampleforth, token holders own a fixed fraction of the total AMPL circulating supply, rather than a fixed number of tokens. When the protocol detects that the price of AMPL is too high, it increases the circulating supply, whereas the supply is decreased if the price is too low.

This change is propagated to all Ampleforth wallets, which have their wallet balance adjusted proportionally. Irrespective of this change, AMPL holders will still retain the same percentage of the token supply.

This automatic supply adjustment process is known as a “rebase” and occurs once each day, with a positive rebase if the price goes above $1.06, and a negative rebase if it is below $0.96. The overall goal of the system is to create incentives that drive the market price of AMPL back to ~$1.

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

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Opium

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The platform is a shared space where the developers, known as Badge Builders, have the ability to collaborate and implement Bitcoin as collateral to as many blockchains as possible. A developer can earn a percentage of the fees and BADGER tokens from the developer mining pool for every implementation. The mainnet was launched on December 3, 2020.

A builder can be a single developer, a group of developers, or even a company. There are no fixed obligations to participation requirements, and anyone can create. The pillars of Badger DAO include the Badger Builders, the community-created products, the Dedicated Badger Operations team, the fairly initial distribution of the BADGER tokens for governance and the fact that all of the code is open-sourced.

Badger DAO

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sUSD

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Orion

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Each of these platforms is termed a “district” and can be launched free of charge on the district0x. The ecosystem is powered by the custom d0xINFRA framework, which provides a set of basic smart contracts and libraries users can use when building out their districts — enabling a wide array of potential use-cases.

The native token of the district0x ecosystem is DNT — an ERC-20 utility token that is mostly used for community governance.

The platform uses a combination of three main technologies: Ethereum, Aragon and the InterPlanetary File Transfer Protocol (IPFS).

The Ethereum blockchain is used for hosting districts, whereas Aragon is used as the governance layer for the district0x network, allowing DNT stakers to benefit from governance rights and help shape the development and operation of their chosen districts. Lastly, IPFS is used for serving the district0x website source code and for user uploads within districts.