September 1, 2021, 3:24AM EDT
• 7 min read

Power perpetuals: Convexity of options, liquidity of perpetuals

Quick take

  • 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.

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