2026-01-03 01:31:00

I've always wondered, why is it so difficult to succeed with on-chain options trading? Over the past few years, I've tried many projects, and they've all raised significant funding, with new protocols emerging constantly. But what’s the result? They crash as soon as they go live, trading volumes are dismal, and funds go down the drain. I've heard that just in this area alone, there are dozens of failed projects. It seems like a straightforward concept—why is it so hard to survive on-chain? I don't know if it's due to technical barriers or if the market capacity itself is the problem.

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EyeOfTheTokenStorm

· 17h ago

In simple terms, no one can overcome the liquidity hurdle. Based on historical data, the depth required by the options market is ten times that of the spot market. The on-chain cost structure simply cannot support such spreads; this is a dilemma that even macroeconomics cannot explain. All the T traders are dead, and you still want to rely on protocol innovation to save the day? My quantitative model has long marked this area as a high-risk black hole. It's basically an IQ tax driven by financing; just look at those PPT projects to understand. The problem isn't technical; it's that there isn't enough retail frenzy to fill this gap.

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SatoshiHeir

· 17h ago

It should be pointed out that the very framework of your question is flawed. The fundamental reason for the failure of on-chain options is not technology or market capacity, but the liquidity paradox—which was already disproved in Vitalik's 2016 paper. Obviously, most projects die from "pseudo-innovation," which essentially is just a shell of fiat currency thinking.

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MagicBean