June 17, 2022
Crypto futures spreads volumes have surged higher at Paradigm after Deribit announced their dramatic reduction in fees. Paradigm saw a large increase in futures spread activity as traders took advantage of a new, trader-friendly fee structure to transact 484.2 BTC on the day of Deribit’s announcement.
Futures spreads are a major force in TradFi futures while their adoption in crypto has been limited. Execution fees have limited participation and that hurdle has now been cleared. Traders may now execute their spread orders on Paradigm’s Future Spread Dashboard (FSPD) for settlement at Deribit with reduced fees.
Another source of contention for crypto spread traders has been liquidity. Liquidity in crypto futures has been heavily weighted toward perps. Perpetual futures (swaps) tend to get the greatest portion of the flow and many traders execute their futures hedges and proprietary trading in perps to avoid slippage. Paradigm went a long way to resolving liquidity and slippage fears with the introduction of Future Spread Dashboard (FSPD) last year.
FSPD removed those concerns by bringing OTC block trade transactions to the masses. Single-click spread execution with atomic fills for guaranteed execution of all legs. Take advantage of Paradigm’s Futures Spread Order Book to place passive (maker) or aggressive (taker) spread orders, enabling more flexibility for traders looking to optimize their cost of trading.
The image above shows just how impactful Paradigm’s liquidity network can be. The implied spread market at Deribit (in the yellow box) is $67 wide. Paradigm’s market makers provided a better price and quantity for both the bid and the ask. The bid/ask spread at Paradigm (in the green box) is only $29 wide. Look at the quantities. Paradigm’s inside market quantity is more than 100x better on the bid and more than 75x better on the ask. These tighter markets add up to substantial savings for our customers and that’s ultimately what we’re here for. Paradigm provides solutions. We exist to improve trading infrastructure and create greater opportunities for our users.
Interested in learning more? Use this link to join our liquidity network.