Paradigm Newsletter - August 2022

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Published On

September 4, 2022

Hi Paradigmers,

Another month, another record for Paradigm, with a fourth consecutive month of all-time high volumes! Despite renewed pressure in markets as central banks stepped up the hawkish rhetoric, clients continued to position for the ETH Merge with mega buying of longer-dated option spreads targeting strikes above 3k.

We also officially launched spot and futures spread trading on FTX, and our timing couldn't have been better. With the potential for a hard fork, the ETH futures term structure went into backwardation, driving basis plays and prompting our volumes on both Deribit and FTX to rocket higher. The launch of one-click trading is making it easier than ever to trade spreads!

TL;DR

  • $8.5 Billion notional was transacted in August 2022
  • Transacted 25% of Deribit’s total BTC volume and 41% of ETH
  • Average daily 30-day volume in August = $270 Million / day
  • 54% of all Deribit BTC options transactions were multi-leg trades
  • 23% account growth month-over-month
  • 72% of all Deribit BTC option and 76% of all Deribit ETH option DRFQ transactions on Paradigm were priced better than the top of book pricing

August Trading Activity

In August, the total notional traded through Paradigm was a whopping $8.5 Billion.

Futures Spreads volume held strong $750.1 million

Featured Execution Stats for Deribit Options in August

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

76% of All Deribit ETH DRFQ Option Transactions on Paradigm Were Priced Better Than the Top of Book Pricing

New Feature

In FSPD, “1-Click Trading” is now available and you can trade APE, DOGE, LINK, and LTC via FTX

You can now easily place orders directly from the FSPD dashboard!
1. Use the “1-Click Trading” toggle to enable trading on your default accounts.
2. Click Buy or Sell, then quickly confirm. (Note: double-clicking will trade instantly.)
3. Orders are executed as Immediate or Cancel limit orders that trade at the clicked price or better!

New Insights

Paradigm Partners with FTX to Launch One-Click Futures Spreads Trading

Basis Basics - Part 1

Basis Basics - Part 2

Paradigm Engineering: Automatic AWS ECR Repository Creation

Watch Your Legs!

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Career Opportunities

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

Sincerely,
The Paradigm Team 💜

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