With the development of decentralized finance (DeFi), derivatives products are becoming increasingly important for users and the market itself.
The Foundation of Yield and Interest Rates
Since 2024, yield and interest rate products have become leaders in DeFi. Pendle, which splits assets into principal and yield tokens, serves as an example of how traditional 'hedging mechanisms' can be implemented on-chain.
The Structure of Options and Volatility
Building on existing mechanisms, options products have emerged. Lyra and Derive have created more realistic pricing for options using new models such as AMM with adaptive volatility.
Infrastructure and Risks
As these financial products expand, a reliable infrastructure becomes essential. HMX and Polynomial aim to enhance performance, but significant risks arise that require long-term management.
The shift towards long-term management and stable tokenomics models highlights the maturity of decentralized derivatives and their role in the financial future.
