Paradigm OTC Institutional Newsletter - April 2022

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Published On

May 6, 2022

Hi Paradigmers,

April showers softened the markets and volume was light across the major crypto exchanges. The broader market saw options volume fall by 13% while Paradigm’s volume dropped by 15% MoM. Despite the drop, we posted our third highest volume of the last year with an impressive $8.0B in trade. Our volume was trending higher as the month closed, with our 7-Day ADV ending the month 15% higher than our 20-Day ADV. 

As for market share, 31% of Deribit’s BTC options activity moved through Paradigm while our share of ETH action bumped up from 23% in March to 27% in April. Our market share increases are coming through hard work. Not only has liquidity improved through our more competitive market programs, but our team has been actively reaching out to customers and looking at data to identify areas where we can provide additional research and actionable insights.

We also stayed busy publishing well-received blogs with two new Insights publications and two new Partnership announcements. Another highly successful publication was written by one of our engineers and focused on our unique compensation and perks, which help make Paradigm such an attractive place to work. 

Thank you for your business, and please let us know how we can assist you in any way!

TL;DR

  • $8.02 Billion notional was transacted in April 2022 
  • Averaged 29.47% of Deribit’s total Options volumes in April
  • Average daily 30-day volume in April = $274 Million / day
  • 49% of all option DRFQs were multi-leg trades
  • Onboarded 158 new counterparties in April
  • We dominated April 20th: we were 50.75% of BTC option market share and 40.97% of ETH option market share
  • 70.2% of all Deribit BTC option and 69.6% of all Deribit ETH option DRFQ transactions on Paradigm were priced better than the top of book pricing

Exciting Career Opportunities!

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

April Trading Activity

In April, the total notional traded through Paradigm was a whopping $8 Billion.

Featured Execution Stats for Deribit Options in April

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.

70% of All Deribit BTC DRFQ Option Transactions on Paradigm Were Priced Better Than the Top of Book Pricing

70% of All Deribit ETH DRFQ Option Transactions on Paradigm Were Priced Better Than the Top of Book Pricing

New Partnerships

Paradigm took another step toward enriching the ever-growing DeFi Options Vault (DOV) space by partnering with Ribbon Finance.

Futures Spread trading took a big leap forward when Paradigm released Future Spread Dashboard. In April, we partnered with Bybit for an ongoing promotion where Bybit will charge ZERO fees on the second leg for futures spread trades executed on Paradigm and settled at Bybit.

New Insights

Variant Research contributed an excellent explanation on how one of our new partners, Ribbon Finance, operates their Options Vaults.

Guest writer Samneet Chepal of LedgerPrime contributed a thoughtful quantitative analysis piece on the interesting crypto wager made between anonymous crypto trader Sensei Algod and Do Kwon, the founder of Terraform Labs.

Our own Mike Yoder penned a terrific blog looking at Paradigm’s unique compensation package and the other incentives and perks that make Paradigm such an attractive place to work.

Twitter 💜

We always love hearing from you. Keep the shout-outs coming!

We’re thrilled with the progress we’ve made in servicing the needs of our clients and providing the tools needed to help crypto bridge the gap between CeFi and DeFi. You’ll hear a lot more about that effort in the months to come. 

As always, check our careers page and let us know if you’d like to join our globally distributed, remote-first team. 

Make sure you ​​follow us on Twitter and LinkedIn for updates.

Sincerely,

The Paradigm Team 💜

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