Perps aren’t “hold forever”. Path, vol & funding crush expected time to liq. (see heatmaps at the end of ren's article)
Most levered views die before the thesis plays out
Temporal turns perps into tradable bands of your choosing. This converts uncontrolled funding into a well defined budget – extending the life of your trade
Temporal is this primitive. Releasing two products sequentially:
1. liquidation protection for your active perp positions [ more attractive for retail ]
2. perpetual options [ the capital efficient design attracts more sophisticated traders ]
have had an article in my drafts for weeks about how there has never been a better time to attempt onchain options again
1) we have a lot more sophisticated traders and institutions on chain this cycle than any cycle before —> they need institutional grade risk management instruments
2) retail traders are tired of being directionally right and still liquidated by being wicked out of trade —> options enables directional betting without liquidation risk
3) lack of liquidity is a legitimate hurdle but solvable given a good enough solution gets built
proliferation of leverage is actually bullish for options
@AltcoinPsycho liquidations should be the last resort. but currently they’re first & only line of defence. that can’t be good risk mgmt.
it’d be cleaner if traders could price and pass off unwanted risk w/o exiting the trade - make it part of position mgmt.
@systematicls we’re launching @TemporalFinance so users can trade “protected” perps.
push your liquidation floor lower and lower without killing your upside.
@delitzer@AndreCronjeTech@flyingtulip_ outside of the put option engineering, it’s parallel to LPing into a hedge fund with pure performance fee, no mgmt fees