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Chapter 1: Commodities to crypto: Anand’s origin story

(00:00–05:00) Paradigm’s origin story and role in birthing the institutional market for crypto options

(05:00–06:30) FTX’s collapse, crypto markets grapple with counterparty risk

(06:30–08:07) Blockchains as trust machines, decision not to build another CEFI exchange, the birth of Paradex

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Chapter 2: Why do institutional liquidity networks exist?

(08:07–10:06) What is an Institutional liquidity network? Who are the major Tradfi liquidity network (Tradeweb and MarketAxess)

(10:06–12:40) The critical role of block trading for large and complex orders

(12:40–13:05) How Paradigm killed the voice-brokers in the crypto options markets

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Chapter 3: The evolution of Crypto Derivatives markets

(13:05–15:32) The rise and success of Perpetual swaps: Liquidity fragmentation and operational challenges in dated futures trading

(15:32–24:35) Have perps killed options in crypto? Can high leverage + high volatility replicate convexity? Will the reach for yield make options more attractive?

(24:35–27:00) Is volatility a good thing? Anand’s perspective as a marketplace builder

(27:00–29:30) The role of liquidations in crypto trading. How Paradex prevents “scam-wicks” and unfair liquidations via a super-resilient mark-price mechanism

(29:30–31:00) Building for the customer. The deliberate, relentlessly focused path to building the endgame for exchanges

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Chapter 4: Why build Paradex?

(31:00–32:20) Why build a decentralized perps exchange? Market size constraints in Options.

(32:20–34:00) Custodial solutions are under attack. Post-FTX accelerated migration of users from Cefi to Defi

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Chapter 5: Why Starknet?

(34:00–35:10) L2 infrastructure that is purpose built for high-throughput, gas and capital efficient derivative transactions

(35:10–36:45) Modular vs Monolithic. Security + performance considerations on picking Ethereum over Solana

(36:45–38:00) Validity proofs (over Optimistic proofs) as a better long term scaling solution for Ethereum

(38:00–38:37) Access to the Starknet leadership team and the co-inventor of zkSTARKs (Eli Ben-Sasson) and its role in our decision to build on Starknet

(38:37–42:00) Paradex = the KILLER App! Bootstrapping our own distribution. Factoring in pre-existing community when picking an L2

(42:00–42:27) Shoutout to Starkware - the most impressive and technically competent team that we have ever worked with!

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Chapter 6: Competing in a really difficult  market

(42:27–44:45) Operating in a highly competitive marketplace - how do you balancing building for the long term while capturing user attention in the short term in a market where competitors take shortcuts (e.g. FTX)

(44:45–45:30) Are points the new meta?

(45:30–47:20) Paradex Pro League and gamifying the trading experience

(47:20–50:20) Points as a hooking mechanism. Addressing points fatigue by building long-term PMF 

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Chapter 7: User Segmentation, GTM Sequencing, Points Program Design

(50:20–52:40) Who is your core user? Thoughtful user segmentation based on sophistication, motivations, capital at risk, and effort.

(52:40–54:20) The role of asymmetric information endemic to the art of bootstrapping liquidity

(54:20–57:00) Degens come for the shitcoins and stay for the blue chips. Long tail assets drive user behavior

(57:00–58:00) Pre-launch markets and innovation in Defi (as a differentiator to Cefi)

(58:00–59:05) Prioritizing engagement by offering a vast selection of tradable products

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We hope this episode was an eye-opener for you guys looking to learn more about the derivatives market.

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