@jufsfstin
On-chain derivatives offer transparency, composability, and censorship resistance. Yet liquidity, latency, and capital efficiency still favor centralized venues. To surpass them, DeFi derivatives must innovate with cross-margining, composable collateral, and automated risk management. If liquidity consolidates and UX improves, on-chain platforms can rival centralized exchanges. The tipping point may come when institutions demand transparency over opaque centralized risks. Until then, DeFi derivatives remain promising but secondary to centralized incumbents.
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