On-chain options trading volume remains below 1% of the volume on perpetual decentralized exchanges, according to Decentralised.co. According to ChainCatcher, the research outlet also notes that options trading in traditional markets is about three times futures volume.

A backtest using Bitcoin daily closing prices from January 2018 to October 2026 found that, among profitable long positions using 10x perpetual contracts, liquidation probabilities were 47% over 180-day windows, 29% over 90-day windows and 18% over 60-day windows. In a replay of three $1,000 Bitcoin long trades on October 10, 2025, the 10x perpetual position was liquidated at 21:14; a 30-day call fell to $181 before rebounding above $800 within an hour; and a $52, seven-day put helped a 10x long position withstand the decline.

Decentralised.co says earlier on-chain options projects struggled with fragmented order books, hedging difficulties and locked capital. Hegic depositors lost most of about $80 million in May 2021, while Lyra’s Bitcoin and Ethereum pools lost 4.9% and 17.6%, respectively, over seven months. PsyOptions shut down its product in June 2024. Portfolio margin near perpetual liquidity venues such as Hyperliquid can reduce the capital locked to sell a Bitcoin call from about $100,000 to $15,000 and raise monthly returns from 1.8% to about 12%.

The article identifies Hyperliquid as a major source of hedging liquidity, options protocol Derive, formerly Lyra, as the underlying engine, Paradex as a venue for block trades, and Hypercall as the first options venue built on Hyperliquid. Derive cleared about $18 billion in options notional in the year through October 19. After Paradex integrated with Paradigm on September 15, daily options volume rose from less than $3 million to $58.7 million within a week. Open interest fell from more than $250 million to about $96 million on October 14. In September 2026, on-chain options notional value roughly doubled to $5 billion, while premiums reached $85 million.