Derivatives / Perps

Moderated by David Lai of Invest Hong Kong, this panel explored the current and future landscape of crypto derivatives, with a specific focus on perpetual futures ("perps"). Featuring seasoned experts Brett Harrison (Architect), Nathan Paredes (CoinFlip), and Patrick Hourihane (Paragon), the discussion highlighted how market infrastructure, user sophistication, and global regulation are shaping derivatives growth in Web3. Against a backdrop of rising retail engagement and evolving institutional interest, the panel spotlighted new opportunities in options, structured products, and stablecoin collateralization.

Panelists agreed that derivatives - particularly perpetual futures - have become the dominant trading method in crypto markets, eclipsing spot trading in volume. Brett Harrison noted that perps often trade 8 - 10x more than spot assets due to their flexibility, leverage, and ease of access. Nathan Paredes observed a marked increase in retail sophistication, with users moving beyond just buying long and instead seeking hedging tools and risk management strategies. Patrick Hourihane emphasized a structural shift toward over-the-counter (OTC) trading, with options and structured products becoming more attractive as lending markets mature.

Brett Harrison credited crypto with turning perps - once a niche instrument - into a mainstream product embraced by both retail and institutional traders. He predicted further innovation as regulated exchanges begin accepting stablecoins as collateral. Nathan Paredes identified improved UX as a bottleneck: while perpetuals are attractive, platforms must simplify access for mainstream users. Patrick Hourihane argued that the next growth wave will come from altcoins and structured products, especially as OTC markets mature to support larger transactions. All panelists highlighted the strategic role of stablecoins in collateral efficiency and 24/7 market responsiveness.

Implications for Builders or Investors

For builders, the message was clear: derivatives infrastructure must prioritize user experience, transparency, and collateral innovation. Startups should consider product suites that combine spot, lending, and perps in a single intuitive interface. Investors were encouraged to explore opportunities in altcoin derivatives and OTC options, as underserved liquidity in these areas may present alpha. Regulatory developments - particularly the potential for stablecoin collateral in U.S.-based clearinghouses - signal a growing institutional acceptance that could further legitimize and scale crypto derivatives.