ChainCatcher report: Cryptocurrency research media Decentralised.co published an article stating that on-chain options trading volume still accounts for less than 1% of perpetuals DEX volume, while in traditional markets, options trading is approximately three times that of futures. The institution conducted a backtest using Bitcoin’s daily closing prices from January 2018 to October 2026, finding that among ultimately profitable long positions, the liquidation probabilities for 10x perpetuals over 180-day, 90-day, and 60-day windows were 47%, 29%, and 18%, respectively. Their replay of three $1,000 Bitcoin long positions on October 10, 2025, showed: a 10x perpetual was liquidated at 21:14; a 30-day call option dropped as low as $181 but rebounded to over $800 within an hour; and a $52 7-day put option enabled the 10x long position to weather the downturn. Decentralised.co noted that past on-chain options protocols failed largely due to fragmented order books, difficulty in hedging, and locked capital. In May 2021, Hegic depositors lost the majority of approximately $80 million; Lyra depositors saw their Bitcoin pool lose 4.9% and their Ethereum pool lose 17.6% over seven months; and PsyOptions shut down its product in June 2024. Integration with perpetual liquidity providers like Hyperliquid enables portfolio margining, reducing the locked capital required to sell one Bitcoin call option from approximately $100,000 to around $15,000 and increasing monthly returns from 1.8% to approximately 12%. The article identifies Hyperliquid as the primary venue for hedging liquidity, Derive (formerly Lyra) as the underlying engine, Paradex as handling large-volume trades, and Hypercall as the first options platform built on Hyperliquid. Derive cleared approximately $18 billion in notional options value over the year ending October 19. After connecting to Paradigm on September 15, Paradex’s daily options volume rose from under $3 million to $58.7 million within a week, while open interest fell from over $250 million to approximately $96 million by October 14. On-chain options notional value is projected to nearly double to $5 billion by September 2026, with premiums rising to $85 million.
ChainCatcher: On-chain options volume remains below 1% of perpetual DEX volume
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Summary
On-chain analysis shows that on-chain options volume remains below 1% of perpetual contracts on DEX, according to ChainCatcher and Decentralised.co. The report analyzed Bitcoin price data from January 2018 to October 2026 and evaluated liquidation risks for 10x perpetuals. Previous options platforms such as Hegic and PsyOptions failed due to order book issues and hedging challenges. Hyperliquid is now a leading liquidity hub, supported by Derive and Paradex. Derive processed $18 billion in options notional over the past year, while Paradex experienced a volume surge after integrating with Paradigm in September 2026.
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