We often hear that CeFi is less secure than DeFi. But is that really the case? This article will explore the question in-depth.
This is the story of BaseFEX - a crypto exchange that unintentionally bankrupted itself through wash trading. It's a cautionary tale for any crypto exchange looking to get ahead by faking volume - and a solid guide for anyone who knows a bit of coding, and wants to take advantage
What we know: 1. In January 2018, just five months after launching, Alameda Research took a massive loan. The loan totaled $117M, and carried an annual interest rate of 43%. Officially, they needed the loan for doing Kimchi arbitrage - however, it was dubious that they ever did any arbitrage.
The Perpetual Option is a funding-based derivative that can express an arbitrary number of payoff functions, including the one used by the Perpetual Future. This document provides a high-level overview of the Perpetual Option.
Ever wondered how HFT strategies work? Today, we'll explore the 0+ HFT strategy - a strategy that has been practiced for decades by various HFT firms - but remains largely unknown to the public. 0+ is all about speed and market microstructure. If you can't be the fastest, it won't
This is the story of the perpetual future - a financial derivative that went from being an obscure OTC-traded derivative that nobody cared about - to being the largest and most successful derivative in the crypto space, trading more than $18T annually. The Inception: Late 1980's Hong Kong The story
Dubbed as “the perpetual future of options”, the floating strike perpetual option is a novel type of option that doesn’t expire, and that remains relevant in perpetuity. It was originally introduced in May 2021, by Paradigm researcher Dave White, in a paper titled Everlasting Options. “Perpetual options give traders
Liquidation procedures vary widely across crypto exchanges. This article provides an overview of the most popular ones. Full, Immediate Liquidation * Your position is transferred to the liquidation engine at its bankruptcy price. Duration: 0 seconds. Time: Immediately after your liquidation price is hit. Result: -100% equity. Fees: No fees. You
A solid price index is essential for any crypto derivatives exchange. The primary purpose of the price index is to help the exchange in establishing “The One True Price” — the price that the exchange uses when evaluating whether to liquidate a position or not. The last traded price (Last Price)