DeFiance CEO: Perptual Futures in encryption still have structural defects and need to launch safer products.

Odaily News DeFiance Capital CEO posted on X platform, stating that the design of encryption derivations (especially Perptual Futures) and market structure are still the biggest structural issues facing the industry. If not improved, it will be difficult to support the industry in achieving sustainable growth. He pointed out that the market cannot continue to “pretend everything is normal” after periodic massive wealth evaporation events; the industry urgently needs more robust mechanisms. He recalled that the situation in March 2020, where Bitcoin fell 50% to 70% within hours, was similar to the October altcoin crash, both exacerbated by systemic failures in key price discovery markets. At that time, BTC Perptual Futures were mostly in “Quanto mode” (priced in BTC and collateralized in BTC), leading to a high degree of reflexive risk and making hedging extremely difficult during downturns. As the market became aware of the design flaws, coupled with the growth of stablecoin usage, USDT margin Perptual Futures quickly replaced BTC margin contracts, significantly enhancing the robustness of market structure and reducing fluctuations. He expressed hope for the emergence of a new generation of Perptual Futures products to further improve the safety and market quality of encryption derivations.