we have been selling options through RFQ for a while ($100M+ volume), so a few notes on this
@domdosu's right on the core problem. a perp is one market. a btc options board is roughly 1000 (expiries x strikes x calls and puts). onchain orderbooks spread liquidity across all of them and it gets thin fast
RFQ beats orderbooks for this. market makers avoid anonymous books because they get picked off. route orders through a retail broker and they don't need to know who you are, just that it's retail. that's why they pay robinhood for its options flow
dealers already quote the long tail too. the ones we work with quote barrier options on the top 500 coins. that liquidity exists today, it just sits in telegram chats most traders can't access
one pushback on the headline: crypto options did take off, just not onchain. @DeribitOfficial , the biggest crypto options exchange, did $1.8T+ in volume in 2025, and coinbase paid ~$4.3B for it
every option retail buys, someone has to write. we sell options on NEAR and SOL. the final product is onchain https://t.co/0TZNl0DMkO, the options get sold offchain to dealers through RFQ
the 2021 options vaults tried this. friktion shut down, @ribbonfinance turned into @aevoxyz . they sold once a week into a single auction, and the APY on the front page was one week's premium times 52. when prices ran through the strikes, the payouts ate the premium
a scheduled weekly sale is still good flow for a dealer. they know the size and timing in advance, and it isn't someone trading on information, so they don't need to charge extra for getting picked off. that flow should go to several desks bidding against each other, not a single auction
right now those flows mostly don't meet. yield products sell to dealers offchain, and retail buys from thin onchain books. put both through the same RFQ and the dealer in the middle can match them instead of hedging each side separately
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