Sphere| DerpDEX the Briefing

Sphere
8 min readNov 15, 2023

All-in-one automated DEX

Hello, Sphere community

Today we bring to you another exciting project from the world of decentralized finance. A project with a great product, a vibrant community, and a promising roadmap. All this juicy stuff and more to come.

Before we get started, we would like to remind you of our recently updated refund policy. We are excited to say that DerpDEX has agreed to go for our enhanced refund period, which gives coverage for a full 7 days.

Please be aware this IDO will have a fairly small raise. The DerpDEX team at not looking to raise large amounts, they are well funded and are focused on their launch. However, they wanted to give the opportunity for interested IDO investors to get in before their token goes public. This means the final whitelist will be quite small.

This article does a deep dive into DerpDEx, but it should in no way replace your own research and due diligence.

Please be aware that the whitelist for the DerpDEX is live and can be found here.

Who are DerpDEX

DerpDEX aims to be the leading concentrated liquidity dex with an all-in-one defi ecosystem on ZKsync, base, and opBNB. Derpdex ensures a smooth experience for traders and liquidity providers.

The vision of DerpDEX is to create an automated market maker (AMM) that is in line with traditional market makers.

Last month, Derpdex was the second highest in terms of TVL on OpBNB chain.

What problem Does DerpDEX Solve?

The current Automated Market Makers (AMMs) in decentralized finance are considered too basic compared to traditional market makers. The popular constant product market maker (CPMM) relies on arbitrageurs to fix price misalignments but leaves potential profits for liquidity providers (LPs) untapped.

Gas bottlenecks and a fixed fee model hinder AMMs from evolving like traditional market makers. The fixed fees fail to account for market volatility, causing LPs to lose money in volatile markets and discouraging traders in stable times.

DerpDEX- The solution

Concentrated liquidity automated market maker (CLAMM) and Derp Market Maker (DMM) would be the first to utilize the full technical capabilities of zkSync, Base & opBNB to provide a high-performance AMM with significantly improved LP returns and a more reliable trading profitability framework.

Who is DerpDeX built for?

Derpdex for traders

  • Execute orders at the best price than other AMMs
  • Lower slippage for huge trades
  • Trading tools and bots integration
  • Mobile app for trading
  • Advanced order for market making and arbitrage

Derpdex for liquidity providers

  • Active LP and fund strategies
  • Enhance capitalization by 10–100x
  • Flexible tier fees for maximum profits
  • Composable with L2 dapps

How does DerpDEX work?

In its initial release, DerpDEX presents an enhanced AMM for liquidity providers (LPs) by merging concentrated liquidity market making (CLAMM) with an adjustable fee pricing mechanism. This aims to encourage arbitrageurs, safeguard LPs’ profit and loss, and decrease their impermanent loss risk.

Enhanced LP performance is expected to draw in more liquidity, providing traders with increased liquidity, greater depth, more dependable trading in volatile periods, and minimized slippage. Future versions of DerpDEX will incorporate volatility-sensitive pricing and styled price bands.

Unique features of DerpDex

  • Light-hearted meme-focused token for web3 communities
    - Univ3 CLAMM + CLMM w/ c- parameter
    - Launchpad for projects launching on Zksync
    - Experienced Team
    - Memebot to facilitate trade for users
    - Gasless transactions
    - Audited by Meta Trust Labs

Notable products of DerpDex

Mobile App

To facilitate trades and for a smooth user experience, DerpDEX presents a user-friendly mobile app. With all the necessary tools and trading options the app promises to be a game changer for users.

Launchpad

DerpDEX will have its launchpad which will be a safe space to launch projects. The launchpad will have benefits such as:

  • No listing fees
  • $DERP airdrop for the first 10 projects
  • DeFi infrastructure and smart contract support
  • Priority listings
  • Market maker integrations

Derp DAO

Derp DAO is a manifestation of the DerpDEX community’s meme movements to be more decentralized, open, and transparent in its governance model. The organization is composed of all $DERP token holders, xDERP stakers, community members, and ecosystem partners and stakeholders.

A more decentralised community governance process will attract more users, communities and provide stronger value support for network effect and token value on the DerpDEX.

Every xDERP holder has the right to participate in the decentralized governance; discussion, proposal, voting, and proposal aprovals. Voting activities will be done the usual way other DeFi protocols carry out theirs.

DerpDEX Tokenomics

$DERP is the native token of DerpDEX on zkSync, Base, and opBNB. DERP is used as a utility token within the DerpDEX network and ecosystem such as paying for gas fees in DerpDEX and staking for xDERP with additional benefits within the $DERP ecosystem.

Max supply: 100,000,000,000,000 DERP (100 trillion DERP)

Token distribution:

1% — Initial AMM LP
5% — Liquidity and CEX cost
48% — LP incentives & airdrops
3% — Foundation reserve
9% — Angel investors
4% — Private sale
20% — DAO: Emission incentive
8% —
Core team (Locked xDerp)
2% — Advisors (Locked xDerp)

$DERP Token Utility

$DERP token is a meme-token with a utility and plays a key role in decentralizing the network, incentivizing all stakeholders to participate in the network, and most importantly, a lighthearted fun token for the web3 communities.

DerpDEX’s xDERP mechanics reflect a combination of two DeFi concepts:

  • Staked token — first introduced by Camelot Exchange to strengthen incentives for token holders
  • Staking privileges — Enable on-chain governance, whitelist for launchpad allocation, premium features, and more.

Roadmap

On June 1, 2023, DerpDEX officially announced its upcoming launch on the zkSync network as the most meme-able DEX!

They started strong with the vision of being the leading concentrated liquidity AMM on zkSync, providing superior performance for traders and LPs with all-in-1 DeFi infrastructure tools.

But what did they achieve in June?

  • DerpDEX has reserved 1,000 OG roles for early supporters of DerpDEX. Demand was high and the roles were gone in 3 hours!
  • DerpDEX’s Testnet Campaign LIVE on zkSync
  • They gained more than 25,000 testnet users in 2 weeks!

Q3 2023

In July , DerpDEX officially launched its Beta Mainnet on zkSync

They are Listed on GeckoTerminal and DefiLlama.

DerpDEX passed a security audit by MetaTrust Labs

Genesis Launch with 6.5% token airdrop!Campaign, results and growth:

  • Accumulative trading volume exceeded 8 million
  • Average daily trading volume at 100–500k
  • Monthly active user: 5000+

Introduced an innovative feature called Zap-to-earn to help simplify the trading experience.

DerpDEX’s 1st incubated meme coin: zkDerpina

  • Token price went up 22x within 3 hours after launch, with 0 token dump as there are no insiders, no team token, no VC allocation and It is just initial buyers taking small profits.
  • Token prices are healthily trading around 10–15x of the opening price.

DerpDEX went multi-chain: LIVE on Base!

  • With the expansion to Base chain, they were able to capture the memecoin users and degens in the native L2 chain.

Q4 2023

Started strong, as they onboarded opBNB. After a few days live on opBNB, they achieved strong results!

Launched a campaign to invite opBNB Genesis NFT Holders with a total of $100,000 worth of airdrop. The campaign received massive adoption and is now trending number 1 on Galxe!

1st 24 hours after the launch, they were the most transactions token pair on opBNB!

Social stats:

This is an area where they have seen major growth.

Notable Partners

  • Over 50+ projects & protocols onboarded. Some notable partnerships are with Wormhole, XY Finance, Galxe, Gecko Terminal, Eralend, ZKNS Domains, Star protocols , NFTFeed, MintBase, Basebot, KaratDAO, and veSync.

What next for DerpDEX?!

  • TGE (Token launch) & Airdrop campaign
  • Listing on CEX
  • Loyalty program
  • Refer- to- Earn Campaign
  • One-click-to-launch-meme feature

$DERP launch

DerpDEX are locked in to launch on November 22nd. Exact timing it to be confirmed.

DerpDEX has confirmed a top 12 exchange for their listing and they might have another in the pipeline…

They have a leading market maker supporting them on their launch.

Key differentiators

DerpDEX focuses on the meme narrative. They have built a competitive DEX with innovation and an ecosystem around meme communities launching and trading. Examples are 1-click-to-launch-meme, meme bots and their launchpad.

Additional points

  • Meme has been very hyped recently, and DerpDEX focuses on the meme aspect and aims to become the DEX and ecosystem to facilitate more meme / high speculative token launches in the future.
  • Initial market cap 1m, FDV 10m, for a project with product and community, has a high potential be being undervalued, especially when you consider that over 50% of that valuation is launch liquidity provision

DYOR

We will be hosting an AMA on our official Telegram on November 15th at 1 pm UTC with a senior member of their team. This will give you a great chance to find out more about their tokenomics, future plans etc. We will pull toghter a post AMA article too.

The more research and due diligence you do, the more understanding you have of a project, a team, the space they are in and their competitors. This is what will help you make informed decisions.

The due diligence we do is significant, and having done this we feel DerpDEX is a high-potential project. However, our research in no way replaces your own research and due diligence. Any investment decision you make is yours and you must be happy with this.

We have put together an article here on how we select projects and it also gives you some suggestions when doing your own research. The following are some useful links to help you look into DerpDEX in more detail:

Whitelisting

Whitelisting applications for DerpDEX has commenced and you can read more on the whitelisting details here

Continuing the Dialogue with Sphere

If there is anything else you’d like to know, or you simply want to say hi, please engage in our various channels:

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Sphere

Sphere is a multichain community first IDO platform — empowering launchpad projects to raise liquidity in a fair & decentralized manner.