DerivaDEX | Insurance Fund

DerivaDEX has launched its testnet on Sepolia, offering users a chance to experience the platform's execution speed and UX before mainnet. **Key Features:** - Combines benefits of centralized and decentralized exchanges - Custom off-chain network enables fast trade execution and reduced costs - Deposits and withdrawals handled on Ethereum - Governed by DAO with full transparency **Getting Started:** - Access at [testnet.derivadex.io](https://bit.ly/3M8A1DN) - Obtain Sepolia ETH from [faucets](https://sepoliafaucet.com/) - Fill out [this form](https://asutherland.aidaform.com/derivadex-sepolia-testnet) for testnet USDC **Testnet Goals:** - Review exchange parameters (leverage limits, collateral limits, slippage) - Evaluate performance metrics (execution speed, uptime, correctness) - Prepare for mainnet governance proposal The testnet runs on the same infrastructure and code planned for mainnet, with only minor changes anticipated. Beta.derivadex.io on Goerli testnet will be deprecated. Report bugs via [Discord](https://discord.gg/a54BWuG) and prepare for mainnet by reviewing the exchange design and ensuring you have governance tokens ready to vote.

DerivaDEX has submitted **Proposal #13** for community voting, which would bring the platform's mainnet to its first users. **Key Details:** - Voting is currently underway at [governance.derivadex.com](http://governance.derivadex.com) - If passed, this marks the transition from testing to live trading - DDX token holders can participate in governance - Traders can join the waitlist at [register.derivadex.com/mainnet](http://register.derivadex.com/mainnet) The proposal represents the second phase of the platform's Guarded Launch, moving the crypto derivatives platform from its testing phase to production.

**DerivaDEX Proposal #13 is now live for community voting**, marking a potential milestone in the platform's evolution. **If approved, the proposal will enable:** - Mainnet access for qualified traders - Trading with real funds in real markets - 24/7 licensed perpetual swaps - Operations under a Class T license from the Bermuda Monetary Authority (BMA) The vote represents a **transition from testing phase to live trading environment**. Qualified traders would gain access to a regulated derivatives platform operating around the clock. [Vote on Proposal #13](https://derivadex.com)

**DerivaDEX becomes the first DAO-governed exchange licensed by Bermuda Monetary Authority** This milestone matters because: - All platform upgrades require **public proposals and tokenholder approval** - Validators can only run **governance-approved code** - Complete **process transparency** for all changes Key features include: - Sub-5ms latency matching centralized exchanges - MEV-resistant encrypted orders - 10-minute withdrawals - Noncustodial design The exchange launches with Bitcoin and Ethereum perpetuals, offering institutions a **regulated path to DeFi derivatives** while maintaining full decentralized governance. This represents a significant step toward **transparent, community-controlled** trading infrastructure in crypto.

The Bermuda Monetary Authority has issued DerivaDEX a Digital Asset Business License, making it the **world's first licensed DAO-governed derivatives exchange**. Backed by major investors including Polychain, Dragonfly, and Electric Capital, DerivaDEX offers: - **Sub-5ms latency** matching centralized exchange performance - **MEV-resistant encrypted orders** for fair trading - **10-minute withdrawals** - faster than L2 bridges - **Noncustodial** - users maintain control of funds - **DAO governance** for assets, protocol decisions, and product listings This development creates a **regulated path for institutions** to access DeFi derivatives trading. The exchange launches with Bitcoin and Ethereum perpetual contracts. [Register for mainnet access](https://register.derivadex.com/mainnet)

DerivaDEX introduces its guarded launch approach with three key safety features: - **Deposit Caps**: Limits initial trading exposure while allowing meaningful participation - **Regional Rollout**: Enables localized risk management and institutional compliance - **Governance-Controlled Participation**: Ensures controlled user onboarding Additional safety measures include price banding, order value limits, and leverage restrictions. All features can be adjusted through decentralized governance as the platform matures.

The DeFi ecosystem is witnessing increased participation across various capital scales, but faces challenges in supporting high-frequency trading capabilities that revolutionized traditional markets. Key developments: - Growing adoption of decentralized trading across different capital scales - Need for sustainable, long-term liquidity solutions - Current limitations in supporting high-frequency trading infrastructure - Innovations like dYdX MegaVault enabling passive yield through liquidity provision The sector requires further infrastructure development to match centralized trading capabilities and maintain consistent liquidity levels.

Trade privacy emerges as a critical factor for traders to maximize order value. Key concerns include: - Payment for order flow transparency - MEV (Miner Extractable Value) management - Protection against frontrunning Currently, 5 entities control 80% of Ethereum block building, while cross-chain MEV coordination continues to grow. **Protective Measures:** - Use MEV-resistant RPCs - Monitor slippage settings - Consider private transaction pools *Future Solutions:* Projects like SUAVE aim to make MEV fair through user compensation and open builder competition.

DeFi's current approach of focusing on speed improvements and liquidity mining fails to address fundamental market structure issues. A new analysis highlights that successful markets require both institutional and retail traders to thrive. Key points: - Current DeFi solutions treat symptoms rather than root causes - *Privacy* emerges as a crucial pillar for market success - Institutional trader needs, when met, benefit all participants - Trade privacy enables full value capture from orders - Issues like MEV and frontrunning require transparent management **Action needed**: DeFi protocols must evolve beyond incremental improvements to compete with centralized finance.