DeFi's Never-Ending Cold Start Problem

Huge Liquidity Potential, Yet the Never-Ending Cold Start Problem

Crypto is now a $3.5T asset class, but we still face liquidity challenges and cold-start issues at perpetual futures market launches. With just 1% of the market cap ($35B), we should be able to create efficient on-chain perpetual future markets, yet we’re still struggling.

The problem is clear: Spot DEXes and lending markets have 10x the liquidity of derivatives. Why? Because we’re limiting perpetual futures to blue-chip assets and mainly USDC onchain. Even after more than 3 years of innovation, perpetual futures still lag behind other DeFi primitives.

By neglecting a wider range of assets, we’re missing huge liquidity potential and holding back the growth of on-chain derivatives. It’s time to rethink and expand these markets.