Hi Paradigmers,

Bitcoin’s big break in early May led to huge volume at Paradigm. We set a new all-time high volume record of $10 billion in transactions. We had a single week of notional BTC volume in excess of 100,000, and for the month, notional BTC volume topped 300,000. Those are new weekly and monthly records for BTC. Our Future Spread Dashboard set a record of its own in May with 15,000 BTC transacted. The BTC spreads accounted for ~5% of Paradigm volume overall. 

We also recorded a new high in ETH market share by accounting for 30% of the ETH options business at Deribit. We’ve seen a strong trend there with our April share of 28% and March share of 24%. For the quarter that started in April, we’ve executed 29% vs. a 21% share in Q1. Looking at BTC, Paradigm accounts for 28% of options executed vs. 26% in Q1. 

More educational material has been posted to the blog section of our website. Click through to learn more about new partnerships, Future Spread functionality, why DOVs are flocking to us, our initial efforts in the Solana ecosystem, and how institutional money is looking at crypto. 

Thank you for a huge month in May! Please reach out with any questions.

TL;DR

• $10 Billion notional was transacted in May 2022 
• Averaged 26.9% of Deribit’s total Options volumes in May
• Average daily 30-day volume in May = $300 Million / day
• Onboarded 136 new counterparties in May
• We dominated on a few days in May. On May 24th, we were 40% of BTC option market share and on May 17th, we were 55% of ETH option market share.
• ‍73% of all Deribit BTC option and 75% of all Deribit ETH option GRFQ 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! 

May Trading Activity

In May, the total notional traded through Paradigm was a whopping $10 Billion.

‍

Featured Execution Stats for Deribit Options in May

‍

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. 

70% of All Deribit BTC DRFQ Option Transactions on Paradigm Were Priced Better Than the Top of Book Pricing

‍

71% of All Deribit ETH DRFQ Option Transactions on Paradigm Were Priced Better Than the Top of Book Pricing

New Partnerships

‍

We’re delighted to announce that Paradigm has taken another step towards empowering the DeFi Options ecosystem by partnering with Friktion, the largest DeFi portfolio manager on the Solana chain. Friktion has consistently been a first mover in the Solana ecosystem and launched the first native-structured products on Solana–Friktion Volts–in late 2021.

New Features

Future Spread Dashboard Enhancements 

In FSPD, you can now trade Deribit’s Solana Inverse Futures! You can also use our new Platform Management feature to communicate changes in the market availability state.

‍

Pin GRFQs for Easy Access

Any GRFQs that you create will automatically be pinned to the top of the list. You can also right click on any GRFQs to pin them to the top of the screen.

‍

New Insights

‍

Richard Excell from the University of Illinois penned an excellent article on institutional money in crypto. Check out the full piece here.

“Having worked at multi-strategy hedge funds, I understood how money was allotted to the different strategies or ‘pods’ within the hedge fund. Watching all of this, I understood that the more institutional money got involved in crypto, the more crypto would look like other markets and not the other way around.“

‍

We also published a brief exploration of DeFi Options Vaults (DOVs), a popular DeFi structured product, and some of their nuances, including auction dynamics. Read the article here.

“The most recent emergent from the cauldron of creativity has been Structured products and while these have played an integral role in TradFi, they are still a burgeoning product in the digital asset realm. The following is a brief exploration of DeFi Options Vaults (DOVs), a popular DeFi structured product, and some of their nuances including auction dynamics.“

Twitter 💜

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

Markets may slow down during the summer, but we’re not stepping off the gas here at Paradigm. Keep an eye out for more feature enhancements, partnerships, and market insights as we continue to build efficiencies and solutions for the crypto space.

As always, check our careers page and let us know if you’d like to join our globally distributed, remote-first team.

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

‍

Sincerely,

The Paradigm Team 💜

‍