Nick Forster | Derive

The vision for Derive - which a lot of people get wrong - is not just onchain Deribit. We’re building the infinite payoff factory: any payoff, on any asset, 24/7. Tailored yield generation, hedging, and speculation at institutional scale that can wrap around any high quality asset, be repackaged, and distributed wherever it’s needed across the Internet Financial System. We’ve positioned Derive intentionally. Options venues take years of expertise, liquidity building, and grinding BD to reach competitive depth. That work is all coming together now. Teams can integrate with Derive, add their own layer on top, and deliver differentiated financial products to their users, without spending years doing the most difficult parts. This is why 20+ teams are already building on Derive. As more high quality assets come onchain at scale, we are readying our infrastructure for a world where that number to grow into the thousands.

@nhpx_ Shouldn’t be happening, can’t dm you, pls dm will take a look

@nickforster Tried playing around with it, but not able to deposit USDC (ETH). This would be awesome if funding was easier.

Options markets implying ~10-15% chance of $100 $HYPE by end of July Think that's too low? Buy the calls at $1.50 per HYPE. If HYPE doubles by the end of July that's a 23x with no liquidation risk. Think that's too high? Take the other side by selling the calls and collect ~18% in USDC premiums while keeping your upside to $100

@maus_cap Yes you can

@nickforster I can do covered calls / cash covered puts?

@NotSoEasyMoney yessir - we're the primary venue on or offchain for HYPE options

@bvillagomez_ yes insights.derive.xyz/hype-on-derive/

@nickforster Hypervm enabled?

@jpickett713 Can be margined in stables or with hype / khype We do have efficient spread margining + portfolio margin if you need it. Top grade capital efficiency

@nickforster Refresh me, are these fully covered with physical or margin? Also did you guys have efficient spread margining? Thanks!

@Max_Newton @DeriveXYZ

@nickforster What venue is this?

@degeneratoor @DeriveXYZ Very very soon

@derivativemonky My guy

Somewhat agree with this take but the bigger point is that options are so much more than a short term speculation tool. Perps are powerful, and were always going to come first onchain because they are (relatively) simple to market make and trade for short term opinions. The market is now in need of scalable yield, hedging, and tailored payoffs. This is what options bring (and it complements perps well). Equities, commodities, fx all coming onchain alongside the institutions that trade them. Yet many still think perps are the only derivative that will ever need to work onchain. This is a way of thinking that is overindexing on 2021-2024. The market from 2026-2030 will be very different, and the opportunity so much bigger. Options are the next chapter.

Been in these markets for 10 years - today the kind of day which is bearable / high opportunity if and only if you have a fundamentals thesis built from first principles/using your own brain + convictions If you don't have this, take the weekend off and work on one next week

Weekly fee chart looking good here At the vault summit in NYC today, reach out if you’re about

been working on something dope for quite some time & I'm excited announce the launch of our crypto options analytics platform : derivativesmonkey.com No Login or Payment Required. It's completely free to use! will explain in tweets below what it does below & how it works👇

What a difference a year makes Last June Derive did $400m notional for the entire month It's June 3, and we've already done $325m, with incentives down 90-95% and TVL all time highs Year of options

🤔

There is NO better feeling than having your speculative deep OTM options go ITM - and having 50-100x leverage to the upside with capped downside None

You can create any financial payoff structure out of calls and puts. This was the core thesis Derive was founded with, and maintains today. More people are realizing this - options are the most programmable derivative, and onchain finance is the most programmable environment for capital.

That’s not a typo. One trader bought ~$6k of $HYPE calls on Derive and walked away with ~$124k in profit 20 days later. A 1,815% return! This wasn’t even the biggest HYPE win this week... more to follow.

@CptRandlelwa so it remains

@nickforster Year of the Fire Horse.

Closing out May with our biggest month ever in $HYPE options, and another $2B month for Derive overall. Exchange volumes have consolidated after March's breakout, and our market share keeps climbing against a quiet market backdrop. New traders and liquidity providers keep flooding in. The flywheel is starting to spin, bring on June.