Paradigm Newsletter - March 2022

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Published On

April 8, 2022

Hi Paradigmers,

Paradigm marched into spring with tremendous activity by adding new features, forming new partnerships, and sharing our industry knowledge. March marked our second highest monthly volume, with a staggering $9.5 billion transacted. BTC options accounted for $6.3 billion of that flow, while one of our newest areas of growth, BTC and ETH futures, posted $469 million of activity. Traders appeared optimistic as outright calls dominated flow and accounted for almost 29% of all trades. (In contrast, outright calls only accounted for 13% of overall activity in February.)

The bear market in volatility raged forward. Volatility continued to drop through the month and is now resting near its lowest level of the year.

Back to our books, our 7-Day ADV ended March at its highest level since October, at $402 million. That’s more than $100 million above our 30-Day ADV and indicates a very strong upward trend.

Also of note is a metric that all of us can celebrate: 80% of all Deribit BTC options trades that passed through Paradigm were executed at a price better than the best price available at the exchange. For ETH, that number comes in at 78%. That’s a real saving for you, our customers.

As always, thanks for your business and we look forward to servicing you for years to come!

TL;DR

  • $9.5 Billion notional was transacted in March 2022
  • Averaged 29.5% of Deribit’s total Options volumes in March
  • Average daily 7-day volume in March = $292 Million / day
  • 70% of all option DRFQs were multi-leg trades
  • Onboarded 32 new counterparties in March
  • We dominated March 29: we were 56.7% of BTC option market share and 48.9% in ETH option market share
  • 80% of all Deribit BTC option and 78% 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!

March Trading Activity

In March, the total notional traded through Paradigm was a whopping $9.5 Billion.

Featured Execution Stats for Deribit Options in March

Multi-Leg Breakdown of Option Products (%)
Our one-click execution for multi-leg spreads continues to be a client favorite. Check out the breakdown in option structures executed via Paradigm.

80% of All Deribit BTC DRFQ Option Transactions on Paradigm Were Priced Better Than the Top of Book Pricing

78% of All Deribit ETH DRFQ Option Transactions on Paradigm Were Priced Better Than the Top of Book Pricing

New Features

GRFQ Delta Hedged Structures

Delta Hedge legs can now be easily added to all Option Strategies in GRFQ to hedge risk. For Custom Options Strategies and for Predefined Option Strategies, Multiple Delta Hedge legs are now available, one for each expiry date in the strategy.

GRFQ Quote Layering

You can now enter two quotes on the same side for a GRFQ. With this feature, a user is no longer restricted to a single Quantity and Bid/Ask pair, which should allow for larger sizes at a user’s preferred price point.

Easy Access to Support

Quick links are available to our Client Solutions Telegram Channel in case you need help.

New Research

Futures Term Structures in Crypto vs. TradFi

We’re happy to announce the formation of Paradigm Insights, a content-based addition to the family. We’ll be putting out regular pieces on interesting topics (think market dislocations, new projects, crypto history…) as chosen by YOU, our most valued clients!

Our first piece looked at futures term structures in crypto vs. TradFi. Take a look!

New Partnerships

Futures Spread Orderbooks on Deribit and ByBit

Big news: Futures Spread Orderbooks on Deribit and ByBit went live. Check out the announcement from February 1.

Bit.com ZERO Taker Fees

We’re thrilled to have partnered with Bit.com for ZERO taker fees from April 10 - May 10, 2022. Don’t miss out: contact your Paradigm representative for details.

DeFi and Options Vaults with Thetanuts Finance

We’ve opened our doors to the fast-growing community of DeFi and Options Vaults by partnering with Thetanuts Finance. See our blog post for the details.

Teambuilding

That’s right, team building in person! Team Paradigm made the most of the amazing Avalanche Summit in Barcelona to bring in team members from around the globe. We were there to learn more about the industry and share our insights, but also to learn about each other and strengthen the Paradigm bond.

Thought Leadership

Our own Micki Koonin took part in the “Derivatives: The Big Picture” panel at the AVAX event.

Twitter

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

Please reach out to us

We’ve been incredibly busy and are thrilled with the progress we’ve made. With the partnerships announced this month, Paradigm has expanded out of CeFi and placed our flag in DeFi as well. Interested in joining us as we continue to grow? Check out our careers page.

Thank you for your continued support!

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

Sincerely,
The Paradigm Team 💜

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