Decentralised.co: On-Chain Options Volume Remains Below 1% of Perpetual DEX Volume

On-chain options trading volume remains below 1% of the volume on perpetual decentralized exchanges, according to Decentralised.co. According to ChainCatcher, the research outlet also notes that options trading in traditional markets is about three times futures volume.A backtest using Bitcoin daily closing prices from January 2018 to October 2026 found that, among profitable long positions using 10x perpetual contracts, liquidation probabilities were 47% over 180-day windows, 29% over 90-day windows and 18% over 60-day windows. In a replay of three $1,000 Bitcoin long trades on October 10, 2025, the 10x perpetual position was liquidated at 21:14; a 30-day call fell to $181 before rebounding above $800 within an hour; and a $52, seven-day put helped a 10x long position withstand the decline.Decentralised.co says earlier on-chain options projects struggled with fragmented order books, hedging difficulties and locked capital. Hegic depositors lost most of about $80 million in May 2021, while Lyra’s Bitcoin and Ethereum pools lost 4.9% and 17.6%, respectively, over seven months. PsyOptions shut down its product in June 2024. Portfolio margin near perpetual liquidity venues such as Hyperliquid can reduce the capital locked to sell a Bitcoin call from about $100,000 to $15,000 and raise monthly returns from 1.8% to about 12%.The article identifies Hyperliquid as a major source of hedging liquidity, options protocol Derive, formerly Lyra, as the underlying engine, Paradex as a venue for block trades, and Hypercall as the first options venue built on Hyperliquid. Derive cleared about $18 billion in options notional in the year through October 19. After Paradex integrated with Paradigm on September 15, daily options volume rose from less than $3 million to $58.7 million within a week. Open interest fell from more than $250 million to about $96 million on October 14. In September 2026, on-chain options notional value roughly doubled to $5 billion, while premiums reached $85 million.