Paradigm

Institutional Grade Liquidity for Crypto Derivatives!

Join: Insights: Tape:

[Paradigm @tradeparadigm]

Four years of building on-chain options taught Dan one thing: AMMs and orderbooks don't work for options. RFQ does.

@DanDeFiEd, founder of @ryskfinance, on @dimetvhq: why the first wave of onchain options protocols died fighting Deribit, how covered calls became DeFi's simplest yield, what Coinbase buying Deribit means onchain, and where RFQ liquidity goes next.

"RFQ, I think, is the best execution for options"

0:00 everyone failed at onchain options
0:46 meet Dan, founder of Rysk
1:20 why V1 failed: options are not the product
5:10 Merrill Lynch, Berlin and finding Ethereum
8:12 the Maker wipeout that led to Opyn
9:32 covered calls and cash secured puts, explained
12:46 too good to be true? the real risks
17:18 who uses Rysk: wealth, not traders
21:44 new assets: HYPE, kHYPE, tokenized stocks, gold
22:03 the RWA unlock: covered calls on SpaceX
26:09 why HyperEVM first, then Ethereum mainnet
32:12 HIP-4 and the Hyperliquid options rumors
35:42 why RFQ beats AMMs and orderbooks for options
39:16 Coinbase bought Deribit: eat the pie or grow it?
43:44 perps people vs options people
46:45 Rysk Prime and vaults on Rysk infra
48:03 it's a bear market, time to build
48:39 the Italian DeFi mafia

Dime Terminal coming soon to Paradigm.
https://t.co/JL5cBeQHkL

[Paradigm @tradeparadigm]

we're hiring the person who launches everything we build.
product, narrative, GTM, distribution. all of it.
also they have to be terminally online.

DM @fiddybps1 if that's you.

[fiddy.dime - priv/acc 🦡 @fiddybps1]

This is NOT a traditional marketing role.

We have an insane amount of things cooking at @tradeparadigm and @paradex, and I’m looking for someone exceptional to help us launch them.

You’ll work directly with me, our leadership team, product and engineering to understand what we’re building, figure out how to position it, and own launches end to end:

product → narrative → GTM → distribution

The role is Product Marketing & GTM Lead.

I want someone who loves products, can simplify highly technical ideas, knows how to create momentum around a launch, and is willing to get their hands dirty making things happen. Also need to LOVE beng terminally online

Product, product marketing, growth or startup experience is highly valued.

We’re a small, highly technical team on a mission to meaningfully change how finance works.

If this sounds like you, DM me.

[Paradigm @tradeparadigm]

https://t.co/tFb2e9HLOd

[Paradigm @tradeparadigm]

Paradigm's RFQ continued to deliver the industry's best options trading execution in August

Block performance vs. Deribit top-of-book (TOB)

+ 69.48% BTC and 72.35% ETH were priced better than TOB
+ 70.60% BTC and 50.77% ETH exceeded the displayed TOB size
+ Average size: 35.25x BTC and 18.42x ETH vs. TOB

Trade options in size: https://t.co/GuKtEc9Tu9

[Paradex @paradex]

We're hiring at @Paradex & @TradeParadigm.
$5,000 for every successful referral.

Open roles in Singapore, New York, and remote:

Engineering
+ Principal Engineer
+ Principal Engineer, AI Products
+ Senior Engineer
+ Senior Data Engineer
+ Quantitative Developer

Trading
+ Quant Trader

Business Development
+ BD & Country Manager, Korea 🇰🇷
+ BD Associate, New York 🇺🇸

Refer anyone, get paid if we hire.

Refer: https://t.co/g5rn8KWrFz
Apply: https://t.co/FZpMtw8xw5

[Paradigm @tradeparadigm]

ETH traders continue capitalizing on the negative skew to buy cheap puts for the Sep 25 expiration

In yesterday's session, there was another single-block 15,000 ETH put bought, following Friday's 27,000 contracts bought for the same expiration at the $2,100 strike

Trade options in size: https://t.co/GuKtEc9Tu9

[Paradigm @tradeparadigm]

One notable trade on Paradigm’s tape last week was Friday’s purchase of 27K ETH puts. The buyer took advantage of put skew sitting at yearly lows to add what looks like a hedge

Despite the big headline number, the weekly top trades’ net delta exposure was still long 2,407 ETH

[Paradigm @tradeparadigm]

Yesterday's largest trades on Paradigm were long-end strangles, betting on big moves in either direction and capitalizing on the current low-IV regime.

The bet is on IV and RV mean-reverting after a 50-day continuous vol compression. BTC price is already up more than 5% today, with DVOL up nearly 3 points.

Join the largest liquidity network in crypto:
https://t.co/GuKtEc9Tu9

[Paradigm @tradeparadigm]

We're hiring. $5,000 for every successful referral.

Open roles in Singapore, New York, and remote:

Engineering
+ Principal Engineer
+ Principal Engineer, AI Products
+ Senior Engineer
+ Senior Data Engineer
+ Quantitative Developer

Trading
+ Quant Trader

Business Development
+ BD & Country Manager, Korea 🇰🇷
+ BD Associate, New York 🇺🇸

Refer anyone, get paid if we hire.

Refer: https://t.co/dBKkksSPMl
Apply: https://t.co/nXFmGM12sm

[Paradigm @tradeparadigm]

Traders took advantage of cheap vol at yesterday's session to build bullish positions, as the market wasn't pricing a high risk of a hot CPI print

Despite CPI data coming in line with expectations, both BTC and ETH gave back early-day gains and closed the day slightly down

Join the largest liquidity network in crypto:
https://t.co/GuKtEc9Tu9

[Paradigm @tradeparadigm]

Paradigm traders in yesterday’s session were betting heavily on BTC breaking out of its current range to $70k, heading into the quarterly expiration on September 25.

They took advantage of cheap premiums as IV and RV continue trending to historic lows.

Get your trade insights on DIME Terminal: https://t.co/JL5cBeQHkL

[Paradigm @tradeparadigm]

Options on prediction markets unlock four things at once: leverage with no liquidation engine, hedges for positions too big to exit, yield on positions you're holding anyway, and a vol surface for event probabilities that doesn't exist yet.

Kushal Mungee (@kushal_mungee), ex-Virtu quant and CEO of @Convallax, is building all four on top of Polymarket, with Kalshi next.

On @dimetvhq: why lending and perps both break on gap risk, pricing options on an asset trapped between zero and one, insider flow and expiry games, and why it all has to run on RFQ.

"once the underlying market becomes liquid enough, the derivatives market emerges and is often dwarfing the underlying market itself"

0:00 what Convallax is building
1:13 why leverage on prediction markets is still unsolved
2:35 why perps won crypto, and why this is different
3:23 who it's for: the traders driving most of the volume
4:40 from Virtu and Morgan Stanley to building an exchange
6:22 why market makers want options to hedge
7:26 the growth case for prediction markets
8:51 90% confident or flipping a coin, same bet
10:20 how options deliver leverage without liquidations
11:41 vol trading, hedging and covered calls on yes shares
13:07 what the premium actually pays for
14:09 the World Cup trade: Spain at 15 cents
16:09 hedging a bet you're about to lose
17:03 how do you price an option on an option?
18:42 the guardrails: why bad quotes get rejected
19:30 where implied volatility comes from
21:56 insider trading and adverse selection
23:47 why Polygon, and the Polymarket dependency
25:12 why isn't Polymarket building this?
26:46 why RFQ beats an order book for options
30:06 how Paradigm and Paradex approach the same problem
32:46 which markets get options first
35:41 elections and strategically timed expiries
36:04 parlays and the rest of the landscape
37:37 Hyperliquid, HIP-4 and the options rumors
39:05 why derivatives always dwarf the underlying

Dime Terminal coming soon to Paradigm. https://t.co/JL5cBeQHkL

[Paradigm @tradeparadigm]

Convallax is building options on prediction markets: calls and puts on a yes or no share that can only ever trade between zero and one.

On Polymarket, a trader who is 90% confident and a trader flipping a coin put up exactly the same money for the same exposure.

"You don't have a way to express that greater level of conviction or leverage. The only way to get more exposure to that outcome is to put up more cash."

@kushal_mungee, CEO and co-founder of @Convallax, explains the problem. Full episode on how he's solving it drops tomorrow on DimeTV.

[Paradigm @tradeparadigm]

@DansonFerdinand @ryskfinance @DanDeFiEd @paradex has on-chain options and pushing out options educational pieces. Check it out here: https://t.co/vDREmVPqJc

[Paradex @paradex]

An option is a contract that gives you the right, but not the obligation, to buy or sell an asset at a predetermined price (the strike).

There are only two building blocks:

Call option: the right to buy at the strike. Calls gain value when price rises above it. You buy calls when you're bullish.

Put option: the right to sell at the strike. Puts gain value when price falls below it. You buy puts when you're bearish, or when you want insurance on a long portfolio.

Because it's a right and not an obligation, the most a buyer can ever lose is the premium paid. A perp long has a liquidation price. A long call does not. Your worst case is priced before you enter.

Trade options on @paradex 👉https://t.co/aBG0e3qP3d

[Paradigm @tradeparadigm]

Almost every on-chain options protocol from the first wave is gone. @ryskfinance is still shipping.

@DanDeFiEd on the V1 that failed and the one line that changed the product:

"We failed too. We built our first V1 and it didn't work out."

"Options are not the product."

"Let's put options at the back. We don't even mention that we're doing options."

New @dimetvhq episode with @DanDeFiEd below.

[Paradigm @tradeparadigm]

Four years of building on-chain options taught Dan one thing: AMMs and orderbooks don't work for options. RFQ does.

@DanDeFiEd, founder of @ryskfinance, on @dimetvhq: why the first wave of onchain options protocols died fighting Deribit, how covered calls became DeFi's simplest yield, what Coinbase buying Deribit means onchain, and where RFQ liquidity goes next.

"RFQ, I think, is the best execution for options"

0:00 everyone failed at onchain options
0:46 meet Dan, founder of Rysk
1:20 why V1 failed: options are not the product
5:10 Merrill Lynch, Berlin and finding Ethereum
8:12 the Maker wipeout that led to Opyn
9:32 covered calls and cash secured puts, explained
12:46 too good to be true? the real risks
17:18 who uses Rysk: wealth, not traders
21:44 new assets: HYPE, kHYPE, tokenized stocks, gold
22:03 the RWA unlock: covered calls on SpaceX
26:09 why HyperEVM first, then Ethereum mainnet
32:12 HIP-4 and the Hyperliquid options rumors
35:42 why RFQ beats AMMs and orderbooks for options
39:16 Coinbase bought Deribit: eat the pie or grow it?
43:44 perps people vs options people
46:45 Rysk Prime and vaults on Rysk infra
48:03 it's a bear market, time to build
48:39 the Italian DeFi mafia

Dime Terminal coming soon to Paradigm.
https://t.co/JL5cBeQHkL

[Paradigm @tradeparadigm]

The largest single line in $BTC options is no longer a call.

A week ago, the $70K and $72K calls dominated @DeribitOfficial board at ~$2.5B notional each, nearly a fifth of the entire $BTC book, built on CLARITY Act passage odds that have since fallen from 80%+ to 30% today.

Friday's $9.6B $BTC monthly expiry settled near $63.8K. Those calls have now expired worthless.

Today the board's biggest line is the $60K put at ~$1.17B, ahead of the $70K and the $72K calls.

Aggregate OI has rebuilt call-heavy (0.53 Put/Call ratio) so this isn't a wholesale bearish turn.

With August seasonality (median returns −7% since 2013), it is clear that desks are expecting potential downside and are buying insurance against it.

Track all of these on DIME Terminal: https://t.co/JL5cBeQ9vd

[Paradigm @tradeparadigm]

@DanDeFiEd @ryskfinance @dimetvhq Watch the full episode here https://t.co/bGoQ6WvNkE

[Paradigm @tradeparadigm]

Four years of building on-chain options taught Dan one thing: AMMs and orderbooks don't work for options. RFQ does.

@DanDeFiEd, founder of @ryskfinance, on @dimetvhq: why the first wave of onchain options protocols died fighting Deribit, how covered calls became DeFi's simplest yield, what Coinbase buying Deribit means onchain, and where RFQ liquidity goes next.

"RFQ, I think, is the best execution for options"

0:00 everyone failed at onchain options
0:46 meet Dan, founder of Rysk
1:20 why V1 failed: options are not the product
5:10 Merrill Lynch, Berlin and finding Ethereum
8:12 the Maker wipeout that led to Opyn
9:32 covered calls and cash secured puts, explained
12:46 too good to be true? the real risks
17:18 who uses Rysk: wealth, not traders
21:44 new assets: HYPE, kHYPE, tokenized stocks, gold
22:03 the RWA unlock: covered calls on SpaceX
26:09 why HyperEVM first, then Ethereum mainnet
32:12 HIP-4 and the Hyperliquid options rumors
35:42 why RFQ beats AMMs and orderbooks for options
39:16 Coinbase bought Deribit: eat the pie or grow it?
43:44 perps people vs options people
46:45 Rysk Prime and vaults on Rysk infra
48:03 it's a bear market, time to build
48:39 the Italian DeFi mafia

Dime Terminal coming soon to Paradigm.
https://t.co/JL5cBeQHkL

[Paradigm @tradeparadigm]

"That's why the RFQ, I think, is the best execution for option."

@DanDeFiEd, founder of @ryskfinance, talks on @dimetvhq about why he stopped trying to build an options orderbook:

"on an orderbook, you might need to provide liquidity for a year out-of-the-money option on ... a year from now, and probably there is not a single user that wants that ... But you still need to commit that liquidity."

"With RFQ, you do the opposite. It's like, hey, there's this single user that wants the option out there. Who is willing to take the counterparty on the other side & at what price?"

Join the largest institutional liquidity network in crypto:
https://t.co/GuKtEc9Tu9