September 1, 2021, 3:24AM EDT
• 7 min read
Power perpetuals: Convexity of options, liquidity of perpetuals
- Perpetual swaps have become an extremely popular product since launching in 2016, owing largely to the simplicity and capital efficiency they afford to liquidity providers.
- Options markets have not yet undergone a similar transformation in liquidity consolidation.
- Power perpetuals are a recently conceptualized financial product that have the potential to provide options-like exposure while also supporting a similar degree of liquidity consolidation seen with perpetual swaps.