Significant challenges exist in the design and market structure of crypto derivatives, particularly perpetual contracts, which must be addressed for the sustainable growth of the industry. Arthur, founder of DeFinance Capital, emphasized the importance of seriously tackling these fundamental issues to prevent financial losses. He stated that the industry needs to learn from historical experiences and develop improved products to stabilize the market. Evgeny Gavvy, founder of Wintermute, noted that such problems have already been resolved in traditional financial systems. He argued that the real issue lies not in the design of perpetual contracts but in the centralized and semi-centralized trading platforms that combine market making, central limit order books, and custody services. These structural complexities negatively impact market transparency and efficiency. Crypto derivatives are primarily used for speculating on future prices, enhancing market liquidity and investment opportunities; however, their complexity and the market’s volatility increase risks. Experts warn that failure to address these challenges promptly could result in significant financial losses and market instability. Despite rapid growth in the crypto market, improvements in its infrastructure are necessary to provide users with a secure and transparent trading environment. Resolving these issues in the future will boost investor confidence and contribute to a more stable market.
Source: binance
