Leveraged trading: the most profitable boy in the DeFi ecosystem?
Editor's Note: This article comes fromChatting with Xiaozha (ID: xiaonazha88), reprinted by Odaily with authorization.
existEditor's Note: This article comes fromChatting with Xiaozha (ID: xiaonazha88)
, reprinted by Odaily with authorization.
exist
"The carnival of DeFi, how can there be no derivatives, a track full of imagination"
This article introduces the product categories and logic of derivatives under the DeFi model.
Here we dig into DeFi derivatives to find opportunities.
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1. Leverage, contract, and option trading, redo the set of leverage, contract, and option trading in the centralized exchange on the chain, of course it is not limited to these, and develop products such as shorting the Nasdaq stock index in the future is also possible;
2. Synthetic assets, mainly the simulation of certain assets, such as synthesizing stocks, or synthesizing legal currency, gold, BTC and other assets;
3. Insurance, the current insurance starts from the original scene, which is to serve the DeFi ecosystem and provide guarantee services for DeFi products and lending scenarios, while the accident insurance and life insurance provided by the traditional insurance industry in the off-chain world are currently relatively small. less involved.
Of course, if DeFi insurance can be used as personal accident insurance, then the off-chain assets would have already been on-chain.
Among derivatives, there is also the variety of prediction market. For derivatives, the following items were counted in the previous article.
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In the defipulse data website, the following 6 types of derivatives are included, covering asset synthesis (Synthetix), insurance (Nexus Mutual, Opyn), and prediction markets (Erasure, Augur, Veil). Transactions such as leveraged futures are not included here Derivatives, as shown in the figure below.
DeFi products are still in their early stages, and the user growth rate and capital growth of DeFi products are a good comparison indicator.
So what is the growth rate of these 6 products? According to the data of defipulse, the lock-up funds trend chart of the six products is as follows.
As can be seen from the figure above, in the past three months, the lock-up volume of Synthetix has increased significantly, while the insurance and prediction markets have grown slowly.
In the case of a good DeFi environment, the insurance and prediction markets did not get a share. In other words, in fact, insurance and prediction markets are not so important to DeFi, which is still in the early stages of development. After all, insurance is more important with richer assets.
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3. The futures, leveraged, and contract trading markets are large
According to Debank data, three items are counted in the column of leveraged trading, namely: dYdX, DDEX, and Nuo. The total holdings of the three are shown in the figure below.
From the figure, it can be seen that decentralized leveraged trading is mainly concentrated on the dYdX protocol, and DDEX and Nuo only get a little drizzle. If you compare the volume of contracts on centralized exchanges, this seems drizzle again.
So can decentralized exchanges steal traffic from centralized exchanges? This is really possible, look at a set of data.
After comparing the website traffic of top exchanges in May and June, data analysis firm ICO Analytics found that the average website traffic of centralized exchanges in June dropped by 13% month-on-month.
Let’s look at the trading volume of decentralized exchanges, as shown in the figure below. There was a wave of small peaks in May and June.
So what is the profit of leveraged trading in decentralized exchanges? The profits of 4 DEXs are selected as shown in the figure below, and the profits of dYdX are in the middle level. If it is placed in the entire DEX market, then dYdX is in the top position.
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Looking back from 2019 to 2020, contract transactions have developed rapidly, and 2020 was once known as the contract year.
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4. Which company has the strongest ability to make money from derivatives?
So in derivatives, who can make money? Select some top DeFi for comparison, as shown in the following two pictures.
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According to the statistical drawing of tokenterminal.xyz data
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According to the statistical drawing of tokenterminal.xyz data
From the point of view of the price-earnings ratio, except for Maker's super high price-earnings ratio, other rough calculations are not much different.
From the perspective of profitability, lending>DEX>derivatives, in derivatives, leveraged trading>synthetic assets>insurance.
From the perspective of the development path of DeFi:
The birth of the first stage is more an imitation of the traditional model.
In the second stage, there was a breakthrough in the native mode.
