Prolonged range bound markets are a hallmark of bearmarkets and they usually end up chopping inexperienced or over leveraged traders. Customised structured products offer a solution for market participants that want to limit their downside, but also the upside, by introducing knock-outs at certain levels or triggers. Such custom options, usually with lower probabilistic chances of occurring, naturally come at a discount. This allows traders to hedge their risk, while also betting on certain outcomes or market scenarios.
We were joined by Zhiming Yang, co-founder of Orbit Markets, to discuss crypto derivatives and how TradFi expertise applies to customising structured products for crypto markets.
Topics covered in this episode:
- Zhiming’s background in investment banking
- FX derivative products
- Exotic options
- Crypto structured products
- Custom solutions for crypto miners
- Hedging Uniswap V3 impermanent loss
- Options based on prediction markets
- Managing counterparty risk
- Protocolising structured products
- Differences between TradFi and DeFi
Episode links:
Sponsors:
- Gnosis: Gnosis builds decentralized infrastructure for the Ethereum ecosystem, since 2015. This year marks the launch of Gnosis Pay— the world's first Decentralized Payment Network. Get started today at - gnosis.io
- Chorus One: Chorus One is one of the largest node operators worldwide, supporting more than 100,000 delegators, across 45 networks. The recently launched OPUS allows staking up to 8,000 ETH in a single transaction. Enjoy the highest yields and institutional grade security at - chorus.one
This episode is hosted by Meher Roy. Show notes and listening options: epicenter.tv/535
