Why Onchain Options Are Finally Working: Derive's 90% Market Share and What's Next?
The Edge Podcast
Why Nick Bet on On‑chain Options
Nick explains his 2021 thesis: programmable capital plus options' flexibility makes on‑chain options powerful.
Nick Forster is CoFounder and CEO of Derive.
Every year since 2021, we've said onchain options would be huge, but it's never played out, until now. Derive has captured 90-95% of onchain options volume while competitors all died or pivoted to perps. The inflection point has arrived.
In this episode, Nick explains why he stayed the course building the hardest product in DeFi, how Yieldmageddon is bullish for the growth of options, and why institutional funds are now turning to onchain options for yield generation. The thesis was right. The timing was just early. And the network effects now make Derive's moat nearly impossible to replicate.
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💎 THIS EPISODE'S PARTNERS
🔒 KPK | Best risk-adjusted yield through automated vaults
🏙 MAINSTREET | Bringing proven TradFi yield strategies to DeFi markets
🕛 NOON | The highest and safest stablecoin yield, built for the long term
🌅 NEUTRL | The next generation of crypto-native yield
🛡️ ACCOUNTABLE | Real-time financial verification
⚔️ KATANA | Deep liquidity & real yield
👻 MANTLE | Aave V3 is live on Mantle
🐡 PUFFER INSTITUTIONAL | ETH staking solutions for scale
⚙️ GEARBOX PROTOCOL | Onchain lending reimagined
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⏱️ TIMESTAMPS
0:00 - Intro
2:27 - Why Nick bet on onchain options in 2021
4:10 - Derive is the largest onchain options exchange
5:28 - Building “the infinite payoff factory”
11:59 - Why not pivot to perps when everyone else did
14:00 - The inflection point: What changed in the last year
16:37 - How RFQ (request for quote) works for institutional size
18:04 - Yieldmageddon, the end of the basis trade and TVL deals
22:19 - Vaults and structured products being built on Derive
24:17 - Is there an LP pool-style product being built for Derive?
25:17 - From Lyra's AMM to Derive's CLOB
28:20 - What options markets are live today?
29:09 - Which networks Derive supports via its appchain
30:26 - HYPE options driving new growth
31:36 - What if Hyperliquid launched options?
35:53 - Why options markets have stronger network effects
39:17 - Will Derive support RWA options markets?
44:14 - Who trades on Derive?
46:13 - Growth charts: From 0.15% to significant market share
48:43 - Why options are countercyclical
51:09 - DRV token: All value flows through the token
55:08 - The story behind Synthetix’s acquisition proposal
57:43 - How big can Derive grow in options trading?
1:00:27 - What's next?
1:02:03 - Closing
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🔗 GUEST LINKS
► Derive website: https://derive.xyz/
► Derive on X: https://x.com/derivexyz
► Nick on X: https://x.com/itseneff
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DISCLAIMER: Nothing said on The Edge Podcast is a recommendation to buy or sell tokens or securities. This content is for educational and entertainment purposes only. Nothing shared here is financial advice. Any views expressed by hosts or guests on the show are solely their opinions. Always do your own research. DeFi Dad, Nomatic, and guests may have positions in the assets or other matters discussed in this podcast.
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