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Getting tokens into the right hands in a fair, efficient and targeted way should be a top priority for founders in crypto. Not only does this impact who governs your protocol, a token that begins as a potential security can also become credibly decentralized over time, potentially shielding founders from regulation in a space where precedents are still rare.

Since the days of EOS’ open-for-all $4B ICO and indiscriminate token airdrops in 2017, the methods by which tokens are distributed have matured. …


43 Lectures with Quizzes to test your knowledge.

+4,5 hours of video and readable content.

Examples screen casted with Deribit’s interface. Sign-up now for free!

https://insights.deribit.com/options-course/


For this 2nd edition of Deep in the Money, we invited Philippe Bekhazi, CEO and founder of XBTO group, a trading and investment firm, and early investor in Deribit. We talk about trading, the correlation between risk-on assets and equities, microstructure, and the Bitcoin supercycle.

Edition: Philippe Bekhazi XBTO group
Host: Paul Faecks


Simple exposure to pure implied volatility. This comes in the form of tradable futures on a volatility index — a common instrument in the traditional markets. Deribit is making the first step towards this with the launch of its very own Bitcoin Volatility Index, DVOL, with the purpose to launch futures on this index soon. This index uses the implied volatility smile of the relevant expiries to output one number that gives a gauge of the 30 day annualised implied volatility.

What does the volatility index measure?

Whilst in traditional market’s, the volatility index is known as a “fear gauge”, when looking at implied volatility in…


The DeFi trend has turned into a frenzy followed by the user-focused trends like NFTs. While we speculate on cryptopunks and chase astronomic yields, Ethereum is hitting its scaling limits and alternative chains are trying to catch up. We are being eaten by MEV and short term speculation propelled by successful DeFi projects and their cheap knockoffs.

The last cycle of 2017 was in the name of big picture topics such as the fat protocol thesis and role of Bitcoin as a replacement for hard money. …


The year is 1944. A proposal by economist John Maynard Keynes would eventually fail to pass at the Bretton Woods Conference, setting the stage for the US-centric international system of money as we know it today. The bancor, a supranational currency coined in the image of the French banque or (‘bank gold’), would be relegated to remaining in its conceptual form.

That is, at least till 2017. Paying homage to Keynes’ idea of a universal, neutral unit of account to clear all international commerce and keep global balance of trade in check, the Bancor Protocol was conceived with the Bancor…


Goal of the analysis

  • Establish lower, middle and upper bounds for how much miner revenue will be burned

Analysis

We believe that the impact of EIP-1559 on both miner revenue and ETH holders has not been well explored. The main reason this analysis has been difficult before is that miner-extractable value has started to make up a large share of miner revenue due to constant arbitrage opportunities in Defi.

To give you a quick refresher:

The revenue miners receive, and that EIP-1559 stands to affect, currently consists of three sources:

  • A block subsidy of 2 ETH per block as well as an extra reward for…

EIP-1559 is one of the most highly-anticipated Ethereum upgrades of all time, radically changing how users bid for transactions, among other major benefits.

EIP-1559 has overwhelming community support and is technically ready to be included in the hard fork after Berlin, pending the usual core developer evaluation process. Lately, miners have started to rally against the proposal. This is not too surprising, since the mechanism would burn some of the transaction fees miners would have previously received.

Although it may seem counterintuitive, our hypothesis is that the best strategy for miners is to support the deployment of EIP-1559.

We test…


Leverage is the use of buying power beyond the assets a trader or investor currently controls, allowing investors to bet larger with a smaller initial capital base. There are different ways to obtain leverage — the main three in the crypto world being lending desks, derivatives exchanges, and lending protocols. While this article focuses mostly on leverage obtained from derivatives exchanges, the high-level concepts are the same everywhere.

In the context of trading specifically, leverage is the ratio of your position size and your account value (also called “margin”).

For example, assume BTC is at $50k, and you buy 1…


In the week of January 25th, 2021, Gamestop (ticker symbol $GME) rose by several multiples due to a massive short squeeze. A synopsis of the saga can be found on Wikipedia here.

This caused a huge furore in the markets, bringing the term “short squeeze” into the mainstream financial social media. …

Deribit

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