- ATHs in options volumes - 8x YoY volume growth - 5x YoY fees growth - ~90% onchain options market share Incredible to see people discover Derive v2 after nearly 3 years in production. But v3 is near, and it is lightyears better than v2. We have taken all of the learnings of 5.5 years operating at the bleeding edge of internet finance and poured it into v3. It incorporates everything we’ve learned from traders, market makers, builders, and the markets themselves. I can't wait to show you what we've built. In the meantime, please keep the feedback coming (traders, builders and MMs) - we aren't perfect but we will work hard to address issues as quickly as we can. Grateful to all those who have believed in us to this point, we have much more to prove.

Makes me really happy to see so many finding out about Derive for the first time this week. The team and I love the feedback, keep it coming. Here are some thoughts: 1. “The UI/UX is too complicated for beginners” - this is fair, the UI is deliberately geared towards experienced options traders and institutions. To date this has been the overwhelming majority of our users and volume. For now, you can find the ‘strategy builder’ feature in the RFQ tab which helps craft options strategies according to your market view, for a simpler experience. More importantly - we don't want to build every retail options experience ourselves. We want hundreds of teams building them on top of Derive. Because options are so tailorable (extremely precise, tailorable strategies for any asset over any duration), there are going to be a ton of different flavours of options based products that are created and successful, across retail trading, structured products, quantitative investment strategies, and vaults. I think that this is one of the biggest unexplored businesses you can build in crypto ATM. V3 is built to support seamless integrations for builders who want to do this. I know of 5+ great teams already working on it. Reach out to me directly if this is something you are doing, and check out the docs here: 2. “My RFQ order isn’t getting a quote/the quote isn’t great.” Orders over ~5m notional or on longer tail alts might need 5-10 minutes for market makers to respond manually. We have a few great MMs that are on autoquotes, but that isn’t (yet) 24/7. So if you don’t love the quote or it looks far from the mark, give it 5-10 minutes when using RFQ (you can also go to the orderbook for instant fills). We have onboarded some major new MMs just this week, so you can expect this to continuously improve. It is our top priority. Keep the feedback coming here. 3. ‘I have a position that has gone deep ITM and I want to get out and liquidity is bad on the orderbook/RFQ.’ Hear you on this - it is one of the tougher challenges in options to build true 24/7 liquidity on deep ITM/OTM strikes with very little time to expiry. We have some programs rolling out for MMers to incentivise liquidity and improve spreads on these. Feel free to reach out to the team directly if you can’t find the quote (you can also delta hedge with perps, which get cross-margined against your options position). Working on it. 4. Wen more RWAs? Very soon Please keep the feedback coming, we are working on a number of different fronts atm with all of the new demand, so if you see something not addressed just know that we hear it and it will be addressed.

I don't think you could feasibly express the opinion '$ETH to $7,000 by March' with a 66x return on capital via perps. A 66x levered long would: a) get liquidated on ANY 1.5% move below entry (until March) b) wipe out the initial margin in funding in just over 2 months (assuming funding is at 10%) Onchain finance on a global scale needs a whole lot more than a leverage slider

$ZEC options activity picking up on Derive and the boards are looking good ATM implied vol is 110% out to end of October, which is significantly more volatile than $HYPE at 65%... Skew is relatively flat which is odd bc I'd expect the 20 delta calls to trade a fair bit over since I'd expect higher volatility with a move up past $1300 by end of Oct (versus a retrace to $800). Could express that view with a long 1300 call / short 800 put + short ZEC perps to hedge the delta. Only on Derive

Another one from the end of July - $0 in premiums paid selling the August end $50 puts to buy the $60 calls. Would have paid out ~$200,000 if you put this on (someone tell me you did) Obviously $HYPE won't 1.5x every month, but you can get wonderful long term leverage via options when it does. Mkt has now consolidated after the recent up move and the at the money implied volatility out to Sep 25th is now ~65% (roughly 3.25% average daily expected move). $100 strike calls are trading at ~$1.60. If HYPE does rip through $100 before end of month, these give you 62.5x leverage to the upside beyond $100 (you get $0 back if HYPE doesn't break $100). ~70% implied vol. Don't hate em for a punt but as always NFA.

All time highs for Derive options volumes and TVL. Proud of the commitment and conviction this team and community has shown. And I really mean it when I say that we are just (finally) getting started.

Derive started as Lyra in 2021 and the thesis then is the same that it is now: Options are the most programmable financial instrument. Blockchains are the most programmable financial rails. Tokenization is putting every asset on them. And Derive is the liquidity layer where all three meet. What's coming next is everything we set out to build, realized.