Where Onchain Derivatives Are Headed

Watch on YouTube ↗  |  April 13, 2026 at 19:10  |  1:05:00  |  Unchained (Chopping Block)
Speakers
Nick Forster — Host, eTown
LTR

Summary

Laura Shin interviews Nick Forster (CEO of Derive) and LTR (venture investor) about the current state and future of onchain derivatives, focusing on options. They discuss why past onchain options projects failed, the significance of Deribit's growth and acquisition, and the factors that could drive the next wave of adoption, including RWA tokenization, the search for sustainable yield, and the potential for AI agents. The conversation outlines a roadmap for onchain options to become a major segment of the crypto market.

  • Onchain derivatives, especially options, are in early stages but show signs of impending growth.
  • Past failures in onchain options are attributed to regulatory issues, poor risk management, and security vulnerabilities.
  • Deribit's central limit order book and cash settlement in Bitcoin brought transparency and liquidity, dominating the offchain market.
  • Hyperliquid's success with onchain perps has paved the way for institutional onchain trading, creating a tailwind for options.
  • The end of the basis trade and token launch farming meta has made options a more competitive yield source.
  • Real-World Assets (RWAs) and tokenized stocks are seen as key drivers due to their holders' natural hedging needs.
  • AI agents could become major users by constructing complex, tailored payoff structures automatically.
  • Key challenges include attracting differentiated order flow, integrating qualified custody, and achieving regulatory clarity.
Trade Ideas
Nick Forster Host, eTown 5:58
Onchain options market poised for significant growth.
Options are about to become a much bigger market as the crypto market matures and the quality of assets increases, driven by users with longer-term horizons who want to hedge or generate yield via covered calls. This is similar to the trajectory seen with perpetuals, which took seven years from BitMEX to Hyperliquid, and options are about seven years behind Deribit's initial growth.
ONCHAIN OPTIONS HIGH
Nick Forster Host, eTown 26:40
Options become competitive yield source post-basis trade.
The collapse of the basis trade and the decline of high-yield token launch farming have made options a more competitive and sustainable source of yield. This shift in market structure removes previous yield crowding and creates an opening for options-based strategies to attract capital.
Options-based Yield Strategies MED
Nick Forster Host, eTown 39:10
RWA tokenization will drive onchain options adoption.
Real-World Assets (RWAs) and tokenized stocks are natural underlying assets for onchain options because their holders have longer-term investment horizons and specific hedging or yield generation needs. Adding RWA options will significantly expand the addressable market.
RWA & Tokenized Stocks MED
Nick Forster Host, eTown 40:46
AI agents will be major users of onchain options.
AI agents are perfect users for onchain options because they can precisely construct and execute complex, bespoke payoff structures based on nuanced market views, overcoming the human complexity barrier. This represents a major thematic tailwind for composable DeFi and options specifically.
AI Agents in DeFi MED
Nick Forster Host, eTown 45:07
Derive aims to take share from Deribit.
Derive is positioned to capture significant market share from Deribit by offering lower fees, competitive execution, a wider range of assets (including via RFQ for custom requests like Cardano options), and integration with qualified custodians to mitigate counterparty risk for institutions.
Derive Platform MED
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This Unchained (Chopping Block) video, published April 13, 2026, features Nick Forster discussing ONCHAIN OPTIONS, Options-based Yield Strategies, RWA & Tokenized Stocks, AI Agents in DeFi, Derive Platform. 5 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Nick Forster  · Tickers: ONCHAIN OPTIONS, Options-based Yield Strategies, RWA & Tokenized Stocks, AI Agents in DeFi, Derive Platform