Prolonged range bound markets are a hallmark of bearmarkets and they usually end up chopping inexperienced or over leveraged traders. Customised structured products offer a solution for market participants that want to limit their downside, but also the upside, by introducing knock-outs at certain levels or triggers. Such custom options, usually with lower probabilistic chances of occurring, naturally come at a discount. This allows traders to hedge their risk, while also betting on certain outcomes or market scenarios.
We were joined by Zhiming Yang, co-founder of Orbit Markets, to discuss crypto derivatives and how TradFi expertise applies to customising structured products for crypto markets.
Topics discussed in this episode:
0:00 - Introduction, Gnosis ad, Chorus One ad
2:32 - Zhiming’s background in investment banking
3:29 - FX derivative products
12:29 - Exotic options
23:39 - Crypto structured products
31:51 - Custom solutions for crypto miners
36:15 - Hedging Uniswap V3 impermanent loss
44:57 - Options based on prediction markets
48:03 - Managing counterparty risk
54:53 - Protocolising structured products
1:00:52 - Differences between TradFi and DeFi
Links mentioned in this episode:
- Zhiming Yang on LinkedIn: bit.ly/3T3tZci
- Orbit Markets on Twitter: bit.ly/49AIwS0
- Orbit Markets: bit.ly/3uELfv2
Sponsors:
- Gnosis: Gnosis builds decentralized infrastructure for the Ethereum ecosystem, since 2015. This year marks the launch of Gnosis Pay- the world's first Decentralized Payment Network. Get started today at gnosis.io -
- Chorus1: Chorus One is one of the largest node operators worldwide, supporting more than 100,000 delegators, across 45 networks. The recently launched OPUS allows staking up to 8,000 ETH in a single transaction. Enjoy the highest yields and institutional grade security at chorus.one/?ut... -
This episode is hosted by Meher Roy. Show notes and listening options: epicenter.tv/535
#orbitmarkets #derivatives #optionstrading