Don't get me wrong, everyone loves the BitMEX XBTUSD perp. But frustration over choppy index, rejected orders, and mega lag has left many traders begging for real competition to BitMEX's perpetual swap. And with OKex barely staying together with their constant issues of rollback, manipulations, and bailouts, there is not really any other game in town.
But have no fear, btc Futures & Options exchange Deribit has released their answer to the smash hit bitcoin derivatives product the XBTUSD BitMEX Perpetual Swap ("perps").
For a bit of background: BitMEX's perpetual swap is basically a Futures that does not expire, and instead has cash flow disbursements every 8 hours which dynamically adjust to anchor the price to spot. It does about $4-5 Billion in notional volume these days.
Traders love it, you can earn BTC cash flow and trade on 100x leverage, with excellent liquidity, spreads usually never more than a tick wide. But one odd part of it is that the swap payment is totally discreet, as in, it pays out at one point in time to all the open interest, every 8 hours...pretty arbitrary, right?
Deribit's model uses an 8 hour interval as well, but instead of a discreet payout, the payout occurs continuously, which leads to a smoother adjustment mechanism to anchor the swap to spot.