Somewhat agree with this take but the bigger point is that options are so much more than a short term speculation tool. Perps are powerful, and were always going to come first onchain because they are (relatively) simple to market make and trade for short term opinions. The market is now in need of scalable yield, hedging, and tailored payoffs. This is what options bring (and it complements perps well). Equities, commodities, fx all coming onchain alongside the institutions that trade them. Yet many still think perps are the only derivative that will ever need to work onchain. This is a way of thinking that is overindexing on 2021-2024. The market from 2026-2030 will be very different, and the opportunity so much bigger. Options are the next chapter.

1/ Midweek Crypto Derivatives Report 2026-06-11 Front-end vol has been violently re-rated lower as the early-June flush unwinds. bitcoin:native front ATM IV has collapsed from the low-60s a week ago to the mid-40s today; ethereum:native 30d has actually firmed 2.2 vols to 59.7 as the belly held. The curve is now flat-to-fractionally-inverted at the very front... and, crucially, it now sits below what just realised. (i) Key Themes (ii) Positioning (iii) Hyperliquid

Over the coming weeks, we'll be sharing Derive trading guides to help you get the most out of the platform. First up: a $HYPE covered call guide. Bookmark this one. This content is for educational purposes only and does not constitute financial advice.

This isn’t even remotely true. $AMZN went public in 1997 at a $450M valuation, or 3x revenues. $GOOGL went public in 2004 at a $23B valuation and at 7x revenues. $META had a $104B valuation in 2012 at 20x revenues(and immediately sold off almost 50%). SpaceX dwarfs these numbers.

It was also a record-fee week, approximately $140K, the highest without incentives YTD: pure organic growth, more users discovering the product. Options tend to be counter-cyclical. Market participants can express any view and create any payoff structure regardless of direction. That is the nature of the product.

Last week was a strong one for Derive, the leading onchain options protocol. $28.7B in cumulative volume. $707M traded last week, with ETH taking a larger share than in prior weeks.

1) What - $ZEC Version Zcash had a critical bug in its Orchard privacy pool that allowed minting unlimited, undetectable counterfeit ZEC. It was live from May 2022 until the patch on June 1, 2026 (over 4 years!). Found May 29 by a white hat using Opus 4.8 in a targeted audit. Disclosed and patched within days. The catch: because Orchard is private, no one can prove whether it was ever exploited. That uncertainty is what tanked the price, not the bug itself. Reaction: ZEC down roughly 45 percent in last 24 hours from above $610, over $3B in market cap gone, ~$120M liquidations (mostly longs). Arthur Hayes dumped his entire bag, gainzy in shambles. Shielded Labs says exploitation is unlikely but is proposing a network upgrade to make supply integrity provable. Probably wise to avoid leveraged position on $ZEC for the moment, volatility in both sides expected. Absolute cinema, but on cost of lots of liquidation mails.

Today a crazy quantum story just got wilder. On March 31, the Google Quantum AI team published a landmark result on Shor's algorithm for elliptic curve cryptography. Technically, the paper was a bombshell: a dramatic 10x improvement over the state-of-the-art. As a stunt and wakeup call to the blockchain space, those optimisations were illustrated on secp256k1, the elliptic curve underlying Bitcoin and Ethereum signatures. But perhaps the most striking part of the paper was sociological, not technical. Instead of following standard academic process, the optimisations were kept secret, hidden behind a zero-knowledge (ZK) proof. Google's accompanying blog post mentions they "engaged with the U.S. government". The ZK proof demonstrates the existence of algorithmic improvements without leaking details. Academic censorship with ZK, a historic first! As a co-author of the Google paper I witnessed some of the context surrounding this censorship. To be honest, multiple aspects of that context don't sit well with me. As much as I believe the general public ought to know more, I am limited in my ability to whistleblow. Though let me be clear about one thing: the Google team's professionalism has been absolutely exemplary, and they deserve nothing but praise. Censorship has a way of backfiring. The Streisand effect, where an attempt to bury something only draws more attention to it, is exactly what's unfolding today. First, Google's key optimisation has been rediscovered by the French. And in a thrilling turn of events, a collaborative Shor-at-home challenge just launched. The initiative, available at ecdsa[.]fail, breached a new Shor world record in a matter of hours. Let's start with the rediscovery. Just two months after Google's paper, French quantum expert André Schrottenloher cracks the main secret optimisation. His paper, titled "Optimized Point Addition Circuits for Elliptic Curve Discrete Logarithms", landed on the arXiv today. Big congrats to André, who beat several other nerdsnipped experts to it. In a blog post also published today, Craig Gidney, the world expert on Shor optimisations, revealed that he'd been sitting on this very optimisation for a whole year under censorship pressure. Interestingly, André missed a handful of minor optimisations, both from Google's original publication and from improvements found since. It's plausible there's still plenty of juice left to squeeze out of Shor, and this is exactly what the ecdsa[.]fail challenge is about. The verifier program developed for the ZK proof does double duty, automatically filtering for valid submissions. Dozens of compounding small and micro improvements are rolling in. As of the time of writing there's an 8.4% improvement to Google's circuit, as measured by the product of logical qubit count and Toffoli gate count. Nice! The nerdsnipping ran deeper than anyone expected. Over the last few weeks it became clear it extended well beyond André and other quantum experts. Behind the scenes, a small army of amateurs quietly got to work. Inspired by Karpathy-style autoresearch, they turned AI on Shor. Ironically, the verifier program for the ZK proof makes an ideal reward function for AIs. The barrier to entry for this modern style of research is refreshingly low, with several non-experts, even a teenager, finding nice optimisations. Get in touch if you'd like to join a Telegram group with fellow autoresearchers :) Part 2: neutral atoms and qday The story doesn't end with Google. On the same day Google went public, a stealthy startup called Oratomic published its own Shor paper in a coordinated release. It made a splash, ultimately becoming the most upvoted paper on scirate[.]com, a website ranking arXiv papers. Oratomic's claim was wild. By building on Google's logical optimisations and applying custom physical optimisations for neutral atoms, they claimed just 10K physical qubits were sufficient to run Shor's algorithm on secp256k1. That number is mind-bogglingly low. Knowing essentially nothing about neutral atoms when Oratomic's paper landed, I was intrigued and decided to learn more about the tech. I fell straight down the rabbit hole and spent a couple hundred hours on the topic. I got a little obsessed and watched every YouTube video I could find and spoke to a bunch of experts. My conclusion? The tech is real, very real. Even Google recently decided to start a neutral atom lab, a notable pivot from their sole focus on superconducting qubits. If you care about qday, i.e. the day a quantum computer will break the first piece of cryptography in production, neutral atoms demand your attention. I shared some of my learnings on Shor and neutral atoms in a 30min talk at the ZKProof cryptography conference. You can find it on YouTube by searching "zkproof neutral atom". Here's an interesting observation about this duo of breakthrough papers: neither Google nor Oratomic say a word about what their results mean for qday. No timelines. Zero. Nada. That is especially baffling given that the whole point of whitehat quantum cryptanalysis is to inform qday estimations and help the general public make good decisions. So let me attempt to partially fill the silence, similarly to what Scott Aaronson did in his April 29 post. Given everything I know, including scary non-public information, I now put the odds of qday by 2032 at 50%. 10% by 2030. Anecdotally, the US government has its own date: 2035. Originating at the NSA and later adopted by NIST, it's when branches of the US government will be disallowed from using quantum-vulnerable cryptography. In plain language: with hindsight, that date is a joke and should be discounted entirely. I don't see how NIST avoids being forced to pull it forward by years. Part 3: post-quantum cryptography There are good reasons to sound the alarm today, but please do not panic. Rushing carelessly towards immature post-quantum cryptography is a recipe for disaster. IMO a good target date for migration is 2029, roughly 3.5 years out. 2029 happens to be the date selected by Google, Cloudflare, and the Ethereum Foundation. These days most of my time goes to safely migrating Ethereum towards post-quantum cryptography as part of the broader lean Ethereum effort. There's a lot to do. We need to rip out and replace BLS signatures at the consensus layer, KZG commitments at the data layer, and ECDSA signatures at the execution layer. The plan to get there is compelling, and is based on hash-based cryptography. Within the Ethereum Foundation we've developed a Swiss army knife called leanVM (github[.]com/leanEthereum/leanVM) powered by the magic of hash-based SNARKs. Thanks to truly exceptional work by Emile, Thomas, and others, its performance is derisked. Regarding security, leanVM is a jewel, a minimal zkVM crafted for end-to-end formal verification and maximum security. Want to help? There are two $1M initiatives. First, the Proximity Prize (proximityprize[.]org). Solve a long-standing mathematical conjecture in coding theory, improve hash-based SNARKs, and go home a millionaire. Second, the Poseidon Initiative (poseidon-initiative[.]info), offers $1M for breaking Poseidon, the SNARK-friendly hash function.

With proliferation of exchanges, prediction markets, and trading platforms - I am wondering if there are any products/verticals that people want to trade but cannot still trade. 🧐🤔

Some funding rate opportunities in #ETH and #HYPE perps between @DeriveXYZ and @HyperliquidX NFA Hyperliquid

That’s not a typo. One trader bought ~$6k of $HYPE calls on Derive and walked away with ~$124k in profit 20 days later. A 1,815% return! This wasn’t even the biggest HYPE win this week... more to follow.

The Empire State Building shines red and white tonight in celebration of @Arsenal’s Premier League Title and trophy celebration. See the lights live: esbo.nyc/ecx

Another productive month: • Largest HYPE trading day. $70M in HYPE options volume. Since December, HYPE has crossed $1.63B in total notional traded. • Joined Blockworks Token Transparency. DRV went live on the Blockworks Token Transparency Framework, scoring 37/40, with buybacks now totalling 24,580,447 DRV. • Integrated Gold-i. Derive liquidity is now accessible through MatrixNET, giving brokers, prop firms and fund managers a cleaner route into onchain options via MT4, MT5, DXtrade, CLEO and more. • Integrated Oggregator. Traders can now aggregate crypto options pricing, execute trades and generate alpha signals across major venues. • Integrated Amper. @helloamper brings Derive options into a DeFi agent interface for swaps, lending, perps and options. • Stradle execution. @StradleXYZ now combines options aggregation, execution and simplified payoff visualisation. • Launched ADA options. The first large ADA options trade hit the tape: a ~$5M call spread collateralized with ADA. • Agentic trading competition. Co-sponsored @_hummingbot’s Condor Builders Cup, the first live trading competition for AI agents. On to June.

In my first public remarks as @CFTC Chairman, I made clear that the agency would use the tools at its disposal to onshore crypto asset perpetuals. Today, the @CFTC delivered on that commitment. This morning, the @CFTC took historic action to permit the listing of a true bitcoin perpetual contract by a CFTC-registered exchange, charting a path for one of the most liquid segments of the crypto asset markets to exist within the US regulatory framework.

Where's Funding Rate Arb traders are? @DeriveXYZ #HYPE #SOL #FundingRate #Options #Perpetuals #Perps

Derive is integrating with @gold_itech MatrixNET, giving brokers, prop firms and fund managers a cleaner route into Derive liquidity through institutional trading infrastructure. This is MatrixNET's first onchain options integration and first onchain integration after Hyperliquid. Derive's liquidity can now be accessed by Gold-i's large client base of brokers, prop trading firms and fund managers via a range of platforms including MT4, MT5, DXtrade and CLEO

We're sponsoring the Condor Builders Cup by @_hummingbot 🦅 The first live trading competition for AI agents with a $20K prize pool, real capital and 48 hours of autonomous trading. Register → botcamp.xyz/hackathons/condo…

All-time high in $HYPE options volume on @DeriveXYZ. Wondering who's behind a decent chunk of those volumes. d2HYPE coded. Ur welcome @dcfgod @0xAlvaroHK 💚 Hyperliquid

Quality stuff. #HYPE #ZEC #Options #Perps NFA.

Lots of happy call buyers as HYPE flips SOL FDV. But it is still early days when it comes to crypto options imo, looking forward to Crypto options having it's Robinhood moment some time this year.