So bullish onchain options I’m getting palpitations. I think they’re the biggest missing unlock in the onchain asset stack. We’re building spot liquidity, borrow markets and distribution around the same assets. The constraint running through all three is who’s willing to warehouse the risk, at what price, and for how long. LPs already carry inventory risk. Holders want yield. Traders want convexity. Options create a market between those needs: holders can sell upside, traders can buy exposure or protection, and dealers can hedge inventory. That can change the economics of supporting an asset onchain. More risk capacity can support better execution; better execution makes larger positions and lending markets more viable; distribution can package those capabilities into products people actually want to hold. Attracting deposits into an options yield product is only half the equation, though. That yield comes from traders paying for exposure or hedgers paying for protection. The market becomes sustainable when those buyers keep coming back because the product is useful. Get that right and options can support durable demand across the entire market around an asset.

"There is no second best", but if there was, it sure as hell wouldn't be ethereum:0x0f2d719407fdbeff09d87557abb7232601fd9f29. I mentioned months ago that if you really wanna diversify the on chain options thesis out, ethereum:0xb32e10022ffbedfe10bc818a1c7e67d9d87e0fa7 and $LIT are the only really viable liquid investments outside of ethereum:0xb1d1eae60eea9525032a6dcb4c1ce336a1de71be. I think the entire sector can 10x in 2027, and each team/token has their own unique value prop and bull case. My honest thoughts on the sector: ethereum:0xb1d1eae60eea9525032a6dcb4c1ce336a1de71be is the massive incumbent obviously. I expect them to be a huge player for all mainnet adjacent derivatives. People genuinely aren't thinking big enough here imo. Structured products like accumulators, principal protected vaults (think $ETH staking yield where the yield goes to buying calls), covered call on chain ETF's, yield products and vaults, etc etc. Options are pretty infinitely programmable DeFi lego blocks and the TAM here is in the trillions. Tons of teams are already building on top of @DeriveXYZ liquidity, and after the v3 update and this price move, I expect way more. $LIT likely has an inside track on RWAs due to the Robinhood connection. I find this to be a double edged sword though because I don't know how good of PMF on chain RWA options trading will have when you can just... use Robinhood itself. Their RWA perps haven't really gotten great traction relative to @HyperliquidX, but I expect there to be a decent amount of options trading from $LIT bulls happy to keep their money in the ecosystem. Make no mistake about it though, @Lighter_xyz has one of the most technically skilled teams in all of crypto, and they'll absolutely come in swinging. @paradex got clowned for their pretty bad ethereum:0xb32e10022ffbedfe10bc818a1c7e67d9d87e0fa7 TGE, but this is still Paradigm with all the rails and expertise that comes with routing half of Deribit volume all these years. Extremely talented team, very heavy focus on privacy. Could see an interesting angle where they do well with AIPAC users and more institutional traders who are used to Paradigm and value privacy more. @SynapseProtocol actually has a very smart founder, @trajan0x, despite their moronic mascot. They're making the bet that tying into Hyperliquid perp liquidity is a huge advantage. I disagree that traders and market makers value this as heavily as they do since all market makers are already running cross venue, and still most heavily on Binance since that's where all the altcoin spot/perp liquidity still is. However, I think they'll have an interesting angle for pre-IPO equities and pre-TGE tokens since Hyperliquid tends to dominate those markets and that's where the cross margining with HL perps actually does matter. I just think that niche doesn't justify the current valuation yet since the metrics are pretty much zero right now. There's no realistic world where @DeriveXYZ remains 95% market share in a sector with this much opportunity. I wouldn't be surprised to see them drop to 60-80% market share in 2027, but the market in question grows 10x. Smaller piece of a MUCH bigger pie. At the end of the day, they're all going to a lot of the same market makers, and liquidity/quotes should tend to coalesce around the same place. What really matters is distribution, interoperability, and moat. I think options do tend to be more winner take all and users/flows are more "sticky" than perps though, and ethereum:0xb1d1eae60eea9525032a6dcb4c1ce336a1de71be pumping also means they'll get more market makers interested in providing liquidity, better distribution through wallet/partner "builder codes", better talent acquisition etc. @DeriveXYZ will be extremely hard to displace, just like Deribit has been despite being asleep at the wheel since their acquisition. A lot of these teams have been building out options for YEARS, and ethereum:0xb1d1eae60eea9525032a6dcb4c1ce336a1de71be pumping rerates all of them upwards, and I'm happy that all these teams are likely to get rewarded for years of grinding. On chain options will be considerably less zero sum than perps are right now, and all of these can experience huge TAM expansion into their own unique verticals. It's just a huge mistake to think "I missed ethereum:0xb1d1eae60eea9525032a6dcb4c1ce336a1de71be, what's cheaper" imo. If anything, their bull case got much stronger from this pump.

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