Paradigm Newsletter - September 2022

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Published On

October 7, 2022

Greetings Paradigmers,

September witnessed the successful completion of the long awaited Merge. A landmark month for crypto, but also for Paradigm as volumes smashed the August highs to record our first 500k BTC month!

Merge focused flows dominated, with continued call spread buying into the event, swiftly unwound post and as Central Banks continued to aggressively hike, downside protection and demand for gamma kept client interest high. Meanwhile, volatility in the ETH curve, combined with our phenomenal FTX product launch, sent futures spread trading volumes parabolic to round out a record breaking quarter for Paradigm.

TL;DR

  • $10.4 billion notional was transacted in September 2022
  • Transacted 29% of Deribit’s total BTC volume and 30% of ETH
  • Futures spreads volume more than *tripled* to reach $2.7 billion
  • Average daily 30-day volume in September = $306.9 million / day
  • 60% of all Deribit BTC options transactions were multi-leg trades

72% of all Deribit BTC option and 72% of all Deribit ETH option DRFQ transactions on Paradigm were priced better than the top of book pricing

September Trading Activity

In September, the total notional traded through Paradigm was a whopping $10.4 billion

Futures Spreads volume more than tripled in September to reach a whopping $2.7B!

Want immediate visibility on axes in Paradigm's fastest growing segment?! 🔥

Since launching in August, our FTX Futures Spreads volumes have sky-rocketed 🚀

✅ Weekly volumes have slingshot 25x from USD $23M in August to USD $740M in September!

✅ Monthly unique trading desks have more than 4x'd from July's 35 to 159.

✅ Opportunity to trade in 20+ coins... and growing.

Join our newest Telegram group and gain instant insight on live axes across all traded pairs the moment they are posted.

Featured Execution Stats for Deribit Options in September

Multi-Leg Breakdown of Option Products (%)

Our one-click execution for multi-leg spreads continues to be a favorite among clients. Check out the breakdown in option structures executed via Paradigm. 

72% of All Deribit BTC DRFQ Option Transactions on Paradigm Were Priced Better Than the Top of Book Pricing

72% of All Deribit ETH DRFQ Option Transactions on Paradigm Were Priced Better Than the Top of Book Pricing

New Features

Decentralized Option Vaults

  • DOV auctions can now be accessed via API

Futures Spreads Dashboard

  • $NEAR, $ADA, $AAVE, $DOT, $AXS, $ATOM, $XRP and $EOS futures spreads are now available via FTX
  • Deribit BTC and ETH minimum tick sizes were increased to match the contract specifications of the underlying venue
  • FTX Trade Rejection Error messages were improved to delineate the responsible party

New Insights

The Shift by Paradigm - Episode 1 with Sean Ballard
Trading Volatility Around a Catalyst
Basis Basics - Pt 3
Paradigm and BitMEX Partner to Launch Futures Spreads
The Accidental Basis Trader
DOV Auctions And The Friday Problem

Twitter 

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Career Opportunities

We’re building the future of finance and solving some of the most difficult problems in the crypto ecosystem. If you’d like to learn more about our many opportunities, check out our Careers page and share with your network! 

Reach out to your rep for details on what we’re building and make sure you ​​follow us on Telegram, Twitter, and LinkedIn.

💜

The Paradigm Team

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