Paradigm OTC Institutional Newsletter - June 2022

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Published On

July 6, 2022

Hi Paradigmers,

Even though prices fell, spirits remained high at Paradigm as our latest initiatives performed extremely well, we established a new volume record, and we booked substantial new business.

Despite the slump in price, we posted an all-time high in volume for BTC with 320k traded. June was a rough month for bulls with Bitcoin losing about one-third of its value as the market was gutted repeatedly by bad news. Lower prices created something of a contagion that brought down a handful of name participants. ATM 7 IV jumped up to 130 on June 14 and eased for the next few weeks, ending near 80 (~ 20% above where it started the month).

Our move into DeFi has gathered additional momentum as Paradigm is now running DOV auctions on two chains, Ethereum and Avalanche. Our most recent auctions with Ribbon Finance featured three assets (BTC, AAVE, and AVAX). For the month of July, we’re thrilled to be adding ETH auctions and looking forward to going live with more DOV protocols.

June marked our highest volume month ever for futures transactions by a longshot. Futures Spread Dashboard (FSPD) not only set a single-month volume record at $558.5M, FSPD recorded more volume in June than it had cumulatively for its entire existence. Even more exciting is that we accomplished this feat with only two exchanges. We expect to go live with our third exchange, FTX, in July. FTX is the second largest crypto derivatives exchange based on open interest.

We also added flow in a new asset with options on Solana at Deribit reaching $2.7M in transactions.

Thank you for another exciting month. Please let us know what we can do to help add value to your business.

TL;DR

  • $7 billion notional was transacted in June 2022 
  • Transacted 21% of Deribit’s total BTC volume and 26% of ETH
  • Average daily 30-day volume in June = $270 million / day
  • 60% of all Deribit BTC options transactions were multi-leg trades
  • Onboarded 174 new counterparties in June
  • We dominated on a few days in June. On June 23, we were 49% of BTC option market share, and on June 6, we were 53% of ETH option market share.
  • 65% 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

June Trading Activity

In June, the total notional traded through Paradigm was $7 billion.

Futures spreads volume has swelled to $558.5 million

Featured Execution Stats for Deribit Options in June

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.

65% 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

Post Only on Futures Spreads Dashboard

Post Only is a special order condition that will only allow your order to be posted. If that is not the case, the order will be immediately canceled. Currently available on Futures Spreads Dashboard and GRFQ.

New Insights

https://www.paradigm.co/blog/locking-uniswap-fees-via-options-orbit-markets

https://www.paradigm.co/blog/an-interview-with-ben-roth-co-founder-of-auros

https://www.paradigm.co/blog/volatility-and-gamma-hedging-musings-in-a-brutal-sell-off

https://www.paradigm.co/blog/podcast-by-genesis-volatility-featuring-paradigm-co-founder-micki-koonin

https://www.paradigm.co/blog/a-bit-of-banter-podcast-by-bit-com-featuring-paradigms-rob-shearer

https://www.paradigm.co/blog/paradigm-engineers-empowered-to-improve

Twitter 

We 💜crypto Twitter – follow us here!

Exciting Career Opportunities

We’re building the future of capital markets trading infrastructure 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!

Many have said that bear markets are a great time to put your head down and build. That’s exactly what we’ve been doing here at Paradigm and we have an exciting list of new markets and functionality to unveil over the coming months. Reach out to your rep for details on what we’re building. 

Make sure you ​​follow us on Telegram, Twitter and LinkedIn.

💜

The Paradigm Team 

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