Sphere| DerpDEX AMA Recap

10 min readNov 15


Welcome to another article from Sphere. As we recently announced, Sphere will be doing a raise for DerpDEX, an All-in-one automated DEX. Click here to find out more about DerpDEX, and here for the whitelist guide.

Our CEO Alex had a question-and-answer session on our Telegram channel with representatives from DerpDEX. This was a text-based AMA and community members had the chance to ask their questions before the session began.

Here is a recap of the AMA:

ALEX: Welcome everyone to the AMA. Welcome dear team members of DerpDEX

DerpDEX spokesperson: Thank you Alex for having me.

ALEX: Alright, Let’s jump right in…Can you talk a bit about potential sell pressure and how you have geared your tokenomics to reduce this in the short and long term?

DerpDEX spokesperson: There are multiple methods and strategies that we planned to encourage the use of DERP as a utility token within DERP ecosystem (in the future)

To start with:

1. In the short term, we planned to create some proven use cases for $DERP token within DerpDEX platform/dapp.

  • Staking to enjoy whitelist for upcoming new meme token launch (or any other high growth project).
  • Multiplier for staking and farming just like what CAKE users enjoy at Pancakeswap. Or simply yield booster.
  • DERP can also be used for pairing with other meme-tokens thus, creating use-cases for DERP token within DerpDEX. Just like BNB is used for most pairs on Pancakeswap.

2. In the long term (during the next bull run), we intend to launch our own opDERP L2 roll-up as well. This is similar to BASE on the Optimism chain.

  • Then DERP token can be used to pay as fees thus, creating utility for the $DERP token.
  • These xDERP token stakers will also enjoy validator node incentives and more. Just like any validator node on chain.

ALEX: Thanks for this and good to see the short and long-term strategies. Using Proven methods is massively beneficial and ensures quick rollout.

DerpDEX spokesperson: Of course, there are also additional benefits:

1. DerpDEX intends to create some special premium privileges such as a VIP group for meme-bot (similar to Unibot BUT for memes sniping, arbitraging, etc).

2. And DERP can also be staked for xDERP to enjoy protocol earnings fee sharing. This info is available in our documentation on our website

ALEX: You have touched on some of the points in your previous answer, but can you flag up what you feel makes DerpDex different/ stand out from the crowd?

We have highlighted some of these in our briefing article here, but it is always good to hear from the team what they feel most proud of and excited by.

DerpDEX spokesperson: DerpDEX focuses on the meme narrative, and builds the competitive DEX with innovation and ecosystem around meme communities launching and trading such as 1-click-to-launch-meme, meme bots, launchpad, etc.

Here is the key insight that we discover in our experience in building and trading meme tokens.

1. There is a gap in the market especially on L2, where it is mostly a VC game and its just a volume game without the actual benefits for users to trade, make some $ and enjoy better environment to trade new tokens.

For example, one our of competitors on zkSync, the largest top 3 DEX in fact, all of the top TVL and volume are mostly ETH and stablecoins.

HOW would that incentivize actual users to go and trade and buy new tokens? Just trading stablecoins? There are no profits to be made!!

2. L2 in our opinion is going to be the catalyst for the bull run where they will get the most TVL, growth and trading volume. This is similar in the previous bull run, where you can see all the liquidity, trading volume and activities rotates at BSAC, Polygon, Solana, Avalanche and Terra.

We believe L2 would the the place where the next growth is next year.

3. MEMEs will also be there regardless of whether is bull or bear market. In the previous bull market, there was SHIBA, FLOKI, and DOGE.

In the current bear market, there is PEPE, “BITCOIN” aMEME launched 10 days ago.

Memes is part of web3 and is here to stay.

We believe that DerpDEX fits right into those narrative and have a GREAT opportunity to fill in the gaps!

Also, IF you visit DerpDEX, you can see we actually put in effort to create our own personality. Make it fun. Make it easy to use. Create our own identity.

ALEX: Thanks so much. A lot covered. And yes we have seen the identity you have put in.

DerpDEX spokesperson: Every project has their own approach. And what matters is we are all here still building!

ALEX: Let’s pick up the identity part, because that is almost as important to building a following as is having the right product. I know the community has heard me say this before, I feel strongly that the key to a project’s success is their ability to raise awareness/market themselves, especially in the run to and after their launch.

Can you give an insight into the marketing you have planned to grow awareness and adoption?

DerpDEX spokesperson: Thanks for the question!

We concluded that the Memetic revolution is taking over the global blockchain landscape and decided to take this route when we started DerpDEX. As Iamderp also mentioned just now, we have our own identity and vision for DerpDEX and it fall through all the branding that we have been building for our project/ product.

A lot of users also LOVE our memeable UI. Feel free to check it out yourself and we would love to hear from you!

Since we started the project in June this year, our community has grown organically. Here are some of the marketing approaches:

1. We allocated in total 48% token supply for airdrop to discord alpha users, testnet users, initial LPers, L2 ecosystem users etc.

2. Multiple web3 marketing campaigns on Galxe (we are a level 4 partner!) , Zealy and more.

3. We have established partnerships with more than 50 partners.

-Product integration such as OKX wallet, Wormhole, XY Finance , Gecko terminal, Sender wallet

-Community partnerships such as Galxe, Zealy, Eralend, ZKNS Domains, Star protocols , NFTFeed, MintBase

-Media partners such as Web3CN, Chaincatcher, Cointime Global, Blockdesk

-DEX token listing partners such as : Cheems, veSync, KaratDAO, zkDerpina

4. We also have more than 30+ KOLs globally working with us to build the awareness and hype for the project worldwide.

After the token launch, we have a lot more in plan to continue building more awareness for DerpDEX. Name a few:

Adding to the points mentioned above:

1. We understand natively that price-action confidence, liquidity + volume ARE CRUCIAL for any token launch and success over the long term.

- Personally, we have seen many GREAT project but always doesn’t have sufficient trading volume nor liquidity to attract more degens, traders and bots.

- AND we have also seen that many memes that has 0 use cases HAVE billions of FDV market cap just because it is a meme and shilled by Elon Musk; ie DOGE.

2. Thus, we actually, put a lot of effort NOT only in building a great product, a great community, an ecosystem plan and a roadmap. BUT also focused a lot of effort on liquidity on exchanges and incentives.

- Thus, we spend our time to get top-tier market makers and paid for centralized exchanges listing for our token launch TGE next week! DerpDEX spends time to maximize our chances to succeed and we hope we get Sphere’s community support as well.

ALEX: Thanks for the answer. It is such an important area and one often overlooked. Good to see solid plans in place Now let’s move on to trust and commitment. You have talked about a reduction in sell pressure and marketing.

However, you also decided on the 7-day refund policy. Obviously, for our community, this adds a layer of safety, but why did you decide to go for it?

DerpDEX spokesperson: 1. We have a long-term plan in place. Let me explain the high-level phases in detail:

Phase 1 (TGE): Liquidity and trading volume is the key priority. Tier 1–2 CEX is crucial with top-tier MM

Phase 2 (Binance): 12-month goal to list on Binance. The requirement is $20m daily trading volume.

Phase 3 (Ecosystem): DerpChain ecosystem with OP-rollup with DEX, launchpad, money market, etc

I shared this plan with our investors yesterday. In fact, most investors thinks its an awesome plan that is ambitious, BUT grounded and pragmatic.

And of course, market sentiment and the current MEME narrative also helps.

2. Based on our plan above, we have absolutely no issues about this refund policy.

In fact, after discussing with Alex on our IDO launch plan through public sale, “raising money” is not the core objective here BUT actual awareness, creating more engagement, with Sphere community.

And also decentralization. Why? The more users we have holding, engaging and participate with DERP ecosystem WILL enable DerpDEX project to succeed.

I have seen too many over-hyped project BUT its just for several group of people. IF we truly see that DerpDEX has a chance to succeed, we need to have more people using DERP and getting with DERP.

So, after discussing with Alex, we decided with a superbly small raise for Sphere community and also allow users to have 7 days refund policy.

Its not about the $ per se, BUT about creating awareness, more users, and trust from the community.

ALEX: Now let’s move to launch You are set to launch on the 21st Nov. Can you give us a clue as to where you will launch?

DerpDEX spokesperson: I will give some very strong hint and clues for our token listings:

1. Top 15 CEX = starts with G — -.io

2. Top 15 CEX = starts with M — — (very speculative tokens exchange)

These 2 CEXs are confirmed and signed.

As for DEX:

1. Uniswap on Ethereum

2. Pancakeswap on BSC

3. DerpDEX on opBNB, Base and zkSync

We wanted to prioritize at least tier 1–2 CEX listings, especially for the initial listings.

Questions from the community

We allowed community members to ask their questions. Here are some questions and the responses from the spokepersons

Question: How does DerpDEX plan to differentiate itself from other AMMs? Can you elaborate on the benefits DerpDEX provides to liquidity providers?

DerpDEX spokesperson: Ok. DerpDEX itself has 2 versions.

1. The current version is a fork of UniV3 with some simple improvements and innovations.

- Concentrated liquidity AMM model.

- BUT we added in smart routing and also aggregator from other DEX ensuring better UX for traders. Just in case not enough liquidity.

2. The V2 is an AMM algo that is developed by a JP Morgan derivatives trader. He is our advisor and worked with us since 2022.

- This AMM has an additional “c-parameter” which makes it even better for traders, LP and arbitrageuers.

- And additional volatility-adjusted fees to enable LP to capture the volatility values from the token price action.

All of these information and algo is available on our Gitbook documentation

3. And obviously, explaining technical jargons and formulas IS NOT going to make it for normal retails. Thus, why meme-angle is important. And additional products and tools such as launchpad, zap-to-earn, mobile wallet etc.

We start with something simple 1st. BUT innovate with product-market fit to get even more stickiness and scale thereafter

Question: How does the Derp DAO contribute to the decentralization and governance of DerpDEX?

In your roadmap I saw you gonna launch your own mobile application, so is it a non-custodial wallet also?

DerpDEX spokesperson: For the first question, We allocated 20% DERP tokens to be controlled by the DAO. This is similar to voting and bribing, except the DAO will use a snapshot for voting for emission for farmings etc.

Thus, creating use cases for xDERP stakers. Now, they can vote for % emission from the DAO for their favorite LP!

We also allocated 40% from the trading fees to be used for:

- Token buyback for the DAO (using market maker)

- Protocol earning sharing from the trading fees collected.

So, we hope we can share some benefits from the value accrued from the DEX and DerpDEX ecosystem for our xDERP stakers.

For the second question, Yes. That would be part of our plan for 2024, why? IF we want normies to use DEX, we need to have a mobile app that makes it easy for them to trade meme tokens and participate in meme-launchpad!

Thats the only way to scale to normal users.

Alex: Fantastic answers You came prepared and we love it. Now the wrap-up question…Building on your point of commitment and trust, I know you have a bit of exciting news for IDO participants. Can you tell us more?!

DerpDEX spokesperson: It’s time for some alpha and LOVE for the Sphere community!

All $DERP IDO participants on Sphere will get an airdrop! This airdrop will be worth 10% of your token amount which will mean you are getting a 10% bonus! Airdrop will be paid out at the end of the first lock period, so 1 month after listing. We hope it’s some nice surprise for the community and join us in the derp train together! I also would like to end this AMA with 3 more key points:

1. Market timing = start of the bull market sentiment

2. Market narrative = MEME is all hot now. Did u know that MEME on Binance is trading at $2.5b FDV with 0 product?

- DERP initial FDV = $10m; with an actual product, token utility and roadmap.

3. Confirmed listings at CEX next week at 2 Top 15 CEX with good trading volume and liquidity!

Let’s make DERP great again!

ALEX: A Huge Thank you for joining us today for this AMA

DerpDEX spokesperson: Thank you, Alex and the Sphere community for giving us this opportunity to share more about DerpDEX. Glad to be here today!

Here ends the AMA

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