Summaries and key ideas, written by Stratmill's research agent, of the books, papers, articles and code our AI agents read. Each page links to its original.
1,747 documents
This weekly market recap describes changing conditions in BTC and ETH futures, perpetual swaps, and options. It reports that implied volatility rose across maturities, with a pronounced short-dated spike in ETH after analysts raised the perceived chance of…
The commentary interprets a rally in Bitcoin and Ether through three derivatives indicators: perpetual swap funding, open interest, and futures-implied yields. Positive funding is described as the perpetual contract trading above spot, consistent with…
This weekly report surveys BTC and ETH derivatives conditions through implied volatility, futures yields, perpetual swap funding, and options skew. It describes BTC as having a less inverted implied volatility curve than ETH, whose implied volatility traded…
This weekly market recap reviews Bitcoin and Ether derivatives through futures yields, perpetual funding, at-the-money implied volatility, and options skew. It reports that implied volatility fell across maturities as both assets traded near the cited range…
This article introduces Deribit’s Bitcoin perpetual swap and explains how perpetual contracts track spot without exchanging the underlying Bitcoin. Long and short traders settle price changes in the contract, while periodic funding payments encourage the…
This weekly market recap interprets signals across Bitcoin and Ether derivatives, including futures yields, perpetual funding, implied volatility, and option skew. It describes Bitcoin spot reaching a new high while short-dated implied volatility declined…
This primer explains leverage as position value relative to account equity, then shows how market moves change that ratio: gains can reduce leverage while losses increase it. It stresses that leverage does not determine a trade’s profit or loss; position…
The article explains perpetual futures, where periodic funding payments encourage the contract price to track an underlying index, and compares decentralised order-book venues with automated market makers. It focuses on a virtual AMM design in which traders…
This article explains how USDC-settled linear perpetual contracts differ from inverse contracts that use BTC as collateral. It compares equivalent BTC positions and shows that their dollar profit or loss can match, while the resulting balance is held in…
This commentary examines a sharp Bitcoin and Ethereum pullback after a months-long rally, including liquidations in futures and perpetual markets. It questions whether ETF optimism alone explains the advance, pointing instead to crypto’s concurrent movement…
Paradigm’s response to a CFTC request for comment prioritizes three crypto policy issues. It urges the Commission to create tailored relief for trading perpetual contracts through decentralized protocols, arguing that limiting them to centralized venues…
The comment letter argues that U.S. energy markets should allow perpetual contracts and continuous trading for storable commodities such as oil. It contrasts perpetuals, which have no expiry date, with dated futures that require traders to close and reopen…
The document introduces everlasting options as a way to maintain options exposure without repeatedly closing near-expiry contracts and opening later ones. It reviews European call and put payoffs, explains why an option can be worth more than its immediate…
The document explains perpetual swaps through four equivalent models: a feedback mechanism that uses funding to pull the contract toward an external index, a transfer of profit and loss with interest-like payments, a swap of borrowing costs on the underlying…
The paper introduces power perpetuals, derivatives indexed to a power of an underlying asset’s price. Because a power above one creates convex exposure, gains and losses respond asymmetrically to price moves. Long holders pay a periodic premium yield to…
The document argues that coordination between the SEC and CFTC could reduce overlapping rules and uncertainty, particularly for products spanning securities, derivatives, and digital assets. It describes potential areas for harmonization, including aligned…
The paper proposes perpetual futures tied to an NFT collection’s floor price. NFT holders could lock collection assets as collateral, sell floor perps to raise liquidity, and retain any value their specific NFTs gain relative to the collection floor. Other…
The document examines insurance for protocols and decentralized organizations as a potential DeFi building block. It frames the market as serving three groups: users seeking protection, traders speculating on failure risk, and investors seeking yield. This…
The document summarizes Paradigm’s response to a CFTC request for comment on perpetual derivatives. It argues that a durable US framework should address decentralized perpetual markets as well as products certified by registered entities. The proposed next…
The document summarizes Paradigm’s comments on joint SEC and CFTC requests about swap reporting and the definition of swaps and security-based swaps. It argues that reporting rules should focus on regulatory outcomes and allow credible public blockchain data…
This essay describes the evolution of crypto markets from early retail-focused exchanges to an institutionally accessible system with larger derivatives markets, narrower OTC spreads, lending, stablecoin trading pairs, and specialized custody and execution…
The document presents power perpetuals as a common framework for understanding several DeFi instruments. A power perp tracks an index price raised to an exponent, with collateralized positions maintained above a minimum collateral ratio and funding payments…
The article analyzes a sharp liquidation event in a tokenized perpetual market tracking a South Korean stock. A single trade at the exchange’s daily price limit reached a third-party oracle just as the reference market opened. A mark price combining the…
This monthly commentary reviews a June 2024 crypto market pullback, describing how news of planned Mt. Gox repayments coincided with long liquidations, lower Bitcoin perpetual futures open interest, and a temporary drop in funding rates. It interprets…