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It sure will. Derivatives trading in ethereum is still incipient and somewhat inefficient. For instance, there is a lot of competing option trading protocols [
by tcgv 6y ago
It sure will.
Derivatives trading in ethereum is still incipient and somewhat inefficient. For instance, there is a lot of competing option trading protocols [1] (mainly for crypto assets) each one with it's advantages and disadvantages, and one of the most popular, Hegic [2], employs liquidity pools pricing options at an expensive value due to a simplified pricing model (good for writers, but not for buyers).
I believe the advent of stablecoins and innovative DeFi protocols are laying the foundations upon which more accessible and efficient solutions will be built. High transaction fees and low throughput still need to be dealt with though, ETH2 is promising a lot in this sense, we will have to wait an see.
Nonetheless I understand that hedge funds and major financial institutions don't see much value in this space yet at its current stage, in regards of trading derivatives.
[1] https://medium.com/coinmonks/an-update-of-a-comparison-of-decentralized-options-platforms-91b14d3a6170 https://medium.com/coinmonks/an-update-of-a-comparison-of-de...
[2] https://www.hegic.co/ https://www.hegic.co/
- xiphias2 6y agoWhile I love the ecosystem that Solidity language provides, I'm not that sure about ETH2. I'm still invested only in Bitcoin _because_ it is boring. At the same time watching DeFi mature while people YOLOing millions of dollars is a lot of fun.