How to Scale the DeFi Derivatives Market
The decentralized finance (DeFi) market has three core areas: permissionless trading, permissionless marketplace creation and permissionless market making – and the last two are essential for the DeFi derivatives market to successfully scale, in addition to enhanced yields for liquidity providers.Permissionless trading has so far been the most widely adopted, thanks to the maturity of on-chain Web 3.0 wallets and their adoption by almost all DeFi protocols. In comparison, decentralized marketplace creation and market making are more recent capabilities enabled by automated market makers (AMMs).However, AMMs have not led to equal decentralized marketplace creation and making between the spot and…