Can someone give me a good reason as to "why we need DeFi derivatives" other than "it exists in CeFi and TraFi so it must also exist in DeFi"?
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I don't think that it existing in other spaces is an *explanation* for why it would in DeFi, but I do think it's *evidence*, because empirically people seem to like them.
Some explanation: it's the most economically efficient way to trade.
It allows margin/leverage but doesn't require a borrow.
Nothing else really fits that definition.
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Yah agreed. but major DeFi trading occur w/ long-tail assets, and most traders prob wouldn't take on leveraged risk on those assets. plus that CEX like u guys, Huobi, Binance already pretty caught up with long tail listing anyway. don't see leverage that urgently needed in DeFi
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Only if there is a use case for it. Interest rate swaps represent 80% of derivatives in TraFi. For Defi - imagine fixing variable interest rate for 12 months. does that for example. Disclaimer: we are investors