pricing things @TemporalFinance • @mcgillu • probabilist • former national golfer
- Tweets 308
- Following 80
- Followers 86
- Likes 6,090
Pinned Tweet
Perps aren’t “hold forever”. Path, vol & funding crush expected time to liq. (see heatmaps at the end of ren's article)
Most levered views die before the thesis plays out
Temporal turns perps into tradable bands of your choosing. This converts uncontrolled funding into a well defined budget – extending the life of your trade
1
8
1,163
Temporal is this primitive. Releasing two products sequentially:
1. liquidation protection for your active perp positions [ more attractive for retail ]
2. perpetual options [ the capital efficient design attracts more sophisticated traders ]
have had an article in my drafts for weeks about how there has never been a better time to attempt onchain options again
1) we have a lot more sophisticated traders and institutions on chain this cycle than any cycle before —> they need institutional grade risk management instruments
2) retail traders are tired of being directionally right and still liquidated by being wicked out of trade —> options enables directional betting without liquidation risk
3) lack of liquidity is a legitimate hurdle but solvable given a good enough solution gets built
proliferation of leverage is actually bullish for options
1
7
209
just read that roger penrose and his brother wish each other a happy birthday by finding 1 interesting property about the number (age) they’ve turned
e.g. he turned 50, it’s the smallest number which is a sum of squares in 2 diff ways: 7^2 + 1^2 ; 5^2 + 5^2
1
3
256
🎯
- Traders want to express views beyond direction. Path, speed, curvature, vol, everything must be tradable
- Can’t import TradFi systems as is on-chain. This is critical for option-like instruments. An order-book setup shards every strike, every expiry into its own micro-market. Liquidity dies before it gets a chance
Temporal ships primitives that allow the entire risk surface to be traded efficiently
1
3
2,134
yesterday i wrote that crypto derivatives market is incomplete. what does incomplete mean? and so what?
1
5
102
4.
e.g.: your treasury holds large amounts of mSOL but only SOL perps trade deep
if you hedge by shorting the SOL perp, you continue holding risk: mSOL <> SOL spread/peg [if the spread averaging 1% daily moved to 4%, its a big loss for your treasury]
that spread’s variance is the cost of incompleteness.
1
79
@0xSumanth has a nice piece on why this segment hasn’t taken off: decentralised.co/p/trading-o…
1
89
@TemporalFinance has pivoted to building this critical market plumbing.
This convexity (read optionality) is something we understand, something we price and trade every single day, and we can’t wait to show you the solution we’ve got.
3
94