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

Back to Blogs

Published On

August 12, 2022

Highlights

  • Paradigm and FTX users can now trade the spread between spot, perpetuals and fixed maturity futures on BTC, ETH, SOL, AVAX, APE, DOGE, LINK and LTC with a single click and no leg risk.
  • Spreads trading is an efficient way to execute multi-leg, delta neutral strategies without execution risk or order book impact, regardless of the trade size.
  • Clients looking for yield enhancement via “cash and carry” or perpetual funding rate farming strategies, or those looking to roll futures hedges, now have a liquid marketplace to seamlessly execute spreads trades without taking directional risk.
  • Trading spreads on Paradigm gives you 50% less fees than trading individual outrights on FTX!
  • FTX is the third exchange to partner with Paradigm on futures spreads. This partnership marks a major step towards the development of a liquid interest rate curve in crypto.

Paradigm is delighted to announce the launch of spreads trading in partnership with FTX. Paradigm users will be able to trade the spread between spot, perpetuals and futures instruments on BTC, ETH, SOL, AVAX, APE, DOGE, LINK and LTC, all with guaranteed atomic execution and clearing of both legs on FTX. Efficient spreads trading will provide a multitude of benefits to our joint customers, including the ability to:

Generate Yield via “Cash and Carry” Trades and Funding Rate Farming

Yield-seeking investors can now effortlessly execute “cash and carry” trades leveraging FTX’s spot and futures instruments across multiple currencies and futures expirations. In addition, traders can farm funding rates on perpetuals with a single click. These trades can now be placed via Paradigm with guaranteed atomic execution of both legs without any exposure to delta risk!

Roll Expiring Futures Hedges More Efficiently

Many traders and investors use futures to hedge or replicate crypto exposures. Futures spreads enable market participants to buy one futures contract and simultaneously sell another futures contract with a single trade. This provides an additional set of tools to traders and investors looking to lock in fixed hedging costs using futures (versus the floating cost of perpetual funding rates) and roll them when nearing expiration. Rolling expiring futures positions has never been easier or more cost-efficient!

Furthermore, spreads trading on Paradigm and FTX has additional benefits for market participants, namely lower fees and deeper, tighter liquidity.

50% Less Fees When Trading Spreads on Paradigm

Spreads executed on Paradigm and cleared on FTX will be charged 50% less fees vs executing two individual outright trades. The cost of rolling positions or taking views on the yield curve has never been cheaper for both Paradigm and FTX clients!

Delta Neutral Spreads Mean Tighter, Deeper Markets

Spreads trading on Paradigm has guaranteed atomic execution of both legs, so is structurally less risky when compared to executing individual legs via a traditional exchange order book. This lower risk profile enables market makers to quote much tighter prices and in significantly larger sizes.

Sam Bankman-Fried, CEO, FTX

"Paradigm is a leading network providing institutional liquidity for crypto derivatives, and we’re excited to expand on our relationship with a formal partnership to collaborate on product developments for both of our users. This structured spread trading product is the first that will enable crypto investors to utilize cash and carry trades through FTX and Paradigm.”

Anand Gomes, CEO, Paradigm

"FTX and Paradigm have a longstanding relationship, and I am ecstatic that we are able to bring our two companies together to improve the crypto ecosystem. With basis trading becoming a tradeable asset class on FTX, we should see significant interest from both crypto-natives trading yield as well as new investors in crypto who can now trade cash and carry as a single asset. And looking ahead, combining the client base and product expertise of both companies will undoubtedly lead to more synergies and new product offerings further down the road.”

About FTX

FTX is a crypto asset trading platform built by traders, for traders. FTX strives to be an intuitive yet powerful platform for all kinds of users, and to be the most innovative trading platform in the industry.

To learn more about FTX.COM, please visit: https://ftx.com/

FTX.COM is not available to US residents or residents of other prohibited jurisdictions, as set out in its Terms of Service.

About Paradigm

Paradigm is a zero-fee, institutional liquidity network for crypto derivatives traders across CeFi and DeFi. The platform provides traders with unified access to multi-asset, multi-protocol liquidity on demand without compromising on execution preferences, costs and immediacy. The firm’s mission is to create a platform where traders can trade anything, with anyone and settle it anywhere.

Paradigm has the largest network of institutional counterparties in crypto with over 1,000 institutional clients trading over $10B per month, including Hedge Funds, OTC Desks, Lenders, Structured Product Issuers, Market Makers and prominent Family Offices.

Looking for the best liquidity in the crypto derivatives markets? Click here to join the Paradigm network and connect with us on Twitter and Telegram.

We've recently updated our privacy policy. The updated policy can be found here. Continued use of our services constitutes acceptance of our updated policy.