On-Chain Derivatives & Liquidity | Tristan Frizza, Uddhav Marwaha

Season 1 | Episode 5

In this episode of Bell Curve, Jason and Mike are joined by Tristan Frizza (Zeta Markets) and Uddhav Marwaha (Friktion) to discuss the world of on-chain derivatives and liquidity. TradFi's derivatives market is magnitudes larger than spot, but on-chain derivatives are just getting started in crypto.

Why does crypto need derivatives like options and perpetuals? What type of users will use these products? And why is it so challenging to build these products on-chain? Tune in to learn these answers and more!

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Timestamps:

(00:00) Introduction

(03:05) The State of DeFi Derivatives

(05:58) Who Wants These Products?

(07:43) The Major Challenges of On-Chain Derivatives

(11:22) Building on Solana vs Other Chains

(16:35) Market Maker Incentives, CLOBs and AMMs

(22:55) Perps, Power Perps and Options

(28:27) The Fixed-Rate, Uncollateralized Lending Unlock

(36:21) High-Frequency Trading in TradFi and DeFi

(42:31) How Big is the Market Opportunity?

(46:52) Finding Product Market Fit

(51:51) Post Interview Thoughts

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Follow Tristan: https://twitter.com/tristan0x?lang=en

Follow Uddhav: https://twitter.com/degen_quant

Follow Mike: https://twitter.com/MikeIppolito_

Follow Jason: https://twitter.com/JasonYanowitz

Follow Bell Curve: https://twitter.com/thebellcurvepod

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Resources:

Zee Prime's DeFi options article

https://zeeprime.capital/a-lot-of-on-chain-options-but-few-to-exercise

Paradigm gradual dutch auctions article

https://www.paradigm.xyz/2022/04/gda

Doug Colkitt on AMMs & CLOBS

https://twitter.com/0xdoug/status/1565446246957023234

Zeta Markets

https://www.zeta.markets/

Friktion

https://friktion.fi/

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Disclaimer: Nothing said on Bell Curve is a recommendation to buy or sell securities or tokens. This podcast is for informational purposes only, and any views expressed by anyone on the show are solely our opinions, not financial advice. Mike, Jason, and our guests may hold positions in the companies, funds, or projects discussed.