Perpetual futures is the most traded crypto product but their less risky brother, options, isn't nearly as popular. What if the options never expire? I took a dive into perpetual options and look into some of the potential solutions and here's what I've foundā©š§µ: Both futures and options were designed to expire. Perpetual futures removed this element but leave the market prone to decoupling from the underlying's spot market. Funding mechanism was introduced to keep the futures price close to the spot price. @paradigm and SBF proposed a universal funding mechanism that would work for most of the derivatives without an expiration time. Panoptics proposed their version of perpetual options, Panoptions. This product starts at 0 premium and funding payments are made regularly based on the accumulated value of options. Sadly, both approach has their flaws and deeper down, there is one problem that doesn't seem to have an obvious solution. Read more here: https://somehacker.xlog.app/Neverending-Options
- 0 replies
- 0 recasts
- 0 reactions
Hello world
- 0 replies
- 0 recasts
- 0 reactions