On-Chain Options Explosion.ActionEvent
Original Title: Crypto Options Are Waking Up
Original Source: Delphi Digital
Original Translation: AididiaoJP, Foresight News
The scale of the cryptocurrency options market far exceeds most people's awareness. The cryptocurrency derivatives trading volume on the Chicago Mercantile Exchange (CME) hit a record high last year, up 46%. Institutional investors need explicit risk management tools to hedge large positions, and options are the only cryptocurrency tool that can provide this functionality.

Reshaping the Landscape
By mid-2025, the total outstanding notional value of Bitcoin options reached $65 billion, surpassing for the first time the outstanding notional value of futures. Futures are a leverage tool, while options allow funds to cap losses on their $500 million Bitcoin positions by paying a premium. This turning point indicates that tools with risk definition capabilities are gradually replacing purely leverage-based tools.
This growth is primarily concentrated on two platforms. Deribit has been the mainstream platform for cryptocurrency options trading for years and gained institutional endorsement after being acquired by Coinbase for $29 billion in 2025. IBIT Options, launched at the end of 2024, has brought traditional financial capital into this space. The options market is rapidly expanding, but the majority of trades still require intermediaries.
On-Chain Options Still in Early Stages
The market share of decentralized derivatives has grown from 2% to over 10% in two years. Hyperliquid has demonstrated that decentralized exchanges (DEXs) can rival centralized exchanges in speed and transparency. However, on-chain options have not yet seen a similarly representative project.
@DeriveXYZ remains the leading on-chain options protocol, with nominal options trading volume exceeding $700 million in the last 30 days. The protocol was launched in August 2021 as Lyra Nominal Options Automated Market Maker (AMM), underwent a full restructuring after the bear market, and is now based on a proprietary OP Stack Layer 2, establishing a gas-free central limit order book.

This restructuring has completely changed the pricing mechanism. Liquidity providers directly quote on the order book, narrowing spreads, improving pricing accuracy, and supporting larger-scale trades. Traders can enjoy zero gas fees and sub-second execution speed.
The portfolio margin system has also attracted institutional attention. The system evaluates overall position risk through scenario analysis. For example, if a trader holds both a long call option and a short put option on the same underlying asset, the system will not require margin for each leg separately.
The collateral required for the post-hedge position is less than a simple sum of individual positions, following the common logic in traditional financial derivatives trading. Derive also offers perpetual contracts and lending services on the same Layer 2, supporting cross-product cross-margin.
@KyanExchange is moving forward in a different way towards the same direction. The platform combines an order book matching engine with on-chain portfolio margin, enabling multi-leg operations to be completed in a single atomic transaction. Traders can deploy iron condor strategies with just a few clicks.
Kyan's liquidation mechanism also differs from most DeFi protocols. When the margin threshold is breached, the platform does not liquidate the entire account but instead performs partial liquidation, closing only enough positions to bring the account back to the minimum required margin. Kyan is currently in the Arbitrum testing phase, with the mainnet launch imminent.
Who Needs Options?
Asset management firms building structured products urgently need the clearly defined risk-return structure provided by options. Take JPMorgan’s Equity Premium Income ETF, for example. This fund is one of the world's largest actively managed funds, based on a covered call strategy. The total AUM of derivative-based yield products has exceeded a trillion dollars. With more institutional funds entering the chain, the corresponding hedging demand will also migrate.
Currently, an increasing number of institutional investors have or plan to allocate digital assets in the near term. IBIT open interest in options has surpassed the gold ETF GLD. By 2025, CME had processed a nominal trading volume of $30 trillion in cryptocurrency derivatives.
Timing is Ripe
Most early on-chain options protocols have not survived, mainly due to regulatory uncertainty. For instance, Opyn was fined by the CFTC for operating an unlicensed derivative trading platform. At that time, the team developing the product could not foresee if the product would be deemed illegal in the next quarter.
The current situation is improving. In September 2025, the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) jointly issued a statement allowing regulated trading platforms to conduct spot trading of crypto assets. The CLARITY Act has passed in the House of Representatives, aiming to place the digital commodity spot market under CFTC regulation. The Senate version is still being negotiated and is currently on hold. The CME Group will launch 24/7 cryptocurrency options trading on May 29. While this does not guarantee the inevitable success of on-chain protocols, the overall landscape has undergone a substantial shift.
You may also like

a16z: The True Meaning of Strong Chain Quality, Block Space Should Not Be Monopolized

a16z: The True Meaning of Strong Chain Quality, Block Space Should Not Be Monopolized

2% user contribution, 90% trading volume: The real picture of Polymarket

Trump Can't Take It Anymore, 5 Signals of the US-Iran Ceasefire

Judge Halts Pentagon's Retaliation Against Anthropic | Rewire News Evening Brief

Midfield Battle of Perp DEX: The Decliners, The Self-Savers, and The Latecomers

Iran War Stalemate: What Signal Should the Market Follow?

Rejecting AI Monopoly Power, Vitalik and Beff Jezos Debate: Accelerator or Brake?

Insider Trading Alert! Will Trump Call a Truce by End of April?

After establishing itself as the top tokenized stock, does Ondo have any new highlights?

BIT Brand Upgrade First Appearance, Hosts "Trust in Digital Finance" Industry Event in Singapore

OpenClaw Founder Interview: Why the US Should Learn from China on AI Implementation
WEEX AI Wars II: Enlist as an AI Agent Arsenal and Lead the Battle
Where the thunder of legions falls into a hallowed hush, the true kings of arena are crowned in gold and etched into eternity. Season 1 of WEEX AI Wars has ended, leaving a battlefield of glory. Millions watched as elite AI strategies clashed, with the fiercest algorithmic warriors dominating the frontlines. The echoes of victory still reverberate. Now, the call to arms sounds once more!
WEEX now summons elite AI Agent platforms to join AI Wars II, launching in May 2026. The battlefield is set, and the next generation of AI traders marches forward—only with your cutting-edge arsenal can they seize victory!
Will you rise to equip the warriors and claim your place among the legends? Can your AI Agent technology dominate the battlefield? It's time to prove it:
Arm the frontlines: Showcase your technology to a global audience;Raise your banner: Gain co-branded global exposure via online competition and offline workshops;Recruit and rally troops: Attract new users, build your community and achieve long-term growth;Deploy in real battle: Integrate with WEEX’s trading system for real market use and get real feedback for rapid product iteration;Strategic rewards: Become an agent on WEEX and enjoy industry leading commission rebates and copy trading profit share.Join WEEX AI Wars II now to sound the charge!
Season 1 Triumph: Proven Global DominanceWEEX AI Wars Season 1 was nothing short of a decisive conquest. Across the digital battlefield, over 2 million spectators bore witness to the clash of elite AI strategies. Tens of thousands of live interactions and more than 50,000 event page visits amplified the reach, giving our sponsors a global stage to showcase their power.
Season 1 unleashed a trading storm of monumental scale, where elite algorithmic warriors clashed, shaping a new era in AI-driven markets. $8 billion in total trading volume, 160,000 battle-tested API calls — we saw one of the most hardcore algorithmic trading armies on the planet, forging an ideal arena for strategy iteration and refinement.
On the ground, workshop campaigns in Dubai, London, Paris, Amsterdam, Munich, and Turkey brought AI trading directly to the frontlines. Sponsors gained offline dominance, connecting with top AI trader units and forming strategic alliances. Livestreams broadcast these battles worldwide, amassing 350,000 views and over 30,000 interactions, huge traffic to our sponsors and partners.
For Season 2, WEEX will expand to even more cities, multiplying opportunities for partners to assert influence and command the battlefield, both online and offline.
Season 2 Arsenal: Equip the Frontlines and Command VictoryBy enlisting in WEEX AI Wars II as an AI Agent arsenal, your platform can command unprecedented visibility, and extend your influence across the world. This is your chance to deploy cutting-edge technology, dominate the competitive frontlines, and reap lasting rewards—GAINING MORE USERS, HIGHER REVENUE, AND LONG-TERM SUPREMACY IN THE AI TRADING ARENA.
Reach WEEX’s 8 million userbase and global crypto community. Unleash your potential on a global stage! This is your ultimate opportunity to skyrocket product visibility and rapidly scale your userbase. Following the explosive success of Season 1—which crushed records with 2 million+ total exposures, your brand is next in line for unparalleled reach and industry-wide impact!Test and showcase your AI Agent in real markets. Throw your AI Agents into the ultimate arena! Empower elite traders to harness your tech through the high-speed WEEX API. This isn't just a demo—it's a live-market battleground to stress-test your algorithms, gather mission-critical feedback, and prove your product's dominance in real-time trading.Gain extensive co-branded exposure and traffic support. Command the spotlight! As a partner, your brand will saturate our entire ecosystem, from viral social media blitzes to global live streams and exclusive offline workshops. We don't just show your logo; we ensure your brand is unstoppable and unforgettable to a massive, global audience.Enjoy industry leading rebates. Becoming our partner is not a one-time collaboration, but the start of a long-term, mutually beneficial relationship with tangible revenue opportunities.Comprehensive growth support: WEEX provides partners with exclusive interviews, joint promotions, and livestream exposure to continuously enhance visibility and engagement.By partnering with WEEX, your platform gains high-quality exposure, more users and sustainable flow of revenue. The Hackathon is more than a competition. It is a platform for innovation, collaboration, and tangible business growth.
Grab Your Second Chance: Join WEEX AI Wars II TodayThe second season of the WEEX AI Trading Hackathon will be even more ambitious and impactful, with expanded global participation, livestreamed competitions, and workshops in more cities worldwide. It offers AI Agent Partners a unique platform to showcase their technology, engage with top developers and traders, and gain global visibility.
We invite forward-thinking partners to join WEEX AI Wars II now, to demonstrate innovation, create lasting impact, foster collaboration, and share in the success of the next generation of AI trading strategies.
About WEEXFounded in 2018, WEEX has developed into a global crypto exchange with over 6.2 million users across more than 150 countries. The platform emphasizes security, liquidity, and usability, providing over 1,200 spot trading pairs and offering up to 400x leverage in crypto futures trading. In addition to the traditional spot and derivatives markets, WEEX is expanding rapidly in the AI era — delivering real-time AI news, empowering users with AI trading tools, and exploring innovative trade-to-earn models that make intelligent trading more accessible to everyone. Its 1,000 BTC Protection Fund further strengthens asset safety and transparency, while features such as copy trading and advanced trading tools allow users to follow professional traders and experience a more efficient, intelligent trading journey.
Follow WEEX on social mediaX: @WEEX_Official
Instagram: @WEEX Exchange
Tiktok: @weex_global
Youtube: @WEEX_Official
Discord: WEEX Community
Telegram: WeexGlobal Group

Nasdaq Enters Correction Territory | Rewire News Morning Brief

OpenAI loses to Thousnad-Question, unable to grow a checkout counter in the chatbox

One-Year Valuation Surged 140%, Who Is Signing the Check for Defense AI?

Bittensor vs. Virtuals: Two Distinct AI Flywheel Mechanisms

