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The crypto derivatives sector is expanding, and the options market has a future to look forward to

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FTX Co-founder CEO and SBF spoke on the current and future of the DEFI industry, FTX products and corporate philosophy, mainstreaming of derivatives trading and crypto finance, naming Miami Stadium, sponsoring Biden campaign and other topics.

原文标题：《 FTX 联创兼 CEO SBF：创造用户真正需要的产品，并对世界产生积极影响 | 生机 2021 》

Original source: Daily Planet

原文作者：郝方舟

On April 28, "Vitality 2021 - Cloud Summit of Blockchain Ecological Industry" hosted by ODaily Star Daily was successfully held. This Yunfeng Summit will invite blockchain industry leaders, representatives of quality enterprises, top mining guests and top project parties to jointly discuss industry changes, link technology applications, and explore a richer imagination in the crypto world.

In the first presentation of the Summit, Sam Bankman-Fried (SBF), co-founder and CEO of FTX and Consultant of SERUM, spoke on the current and future of the DEFI industry, FTX products and corporate philosophy, derivatives trading and the mainstreaming of crypto finance. And naming a Miami stadium and sponsoring Joe Biden's campaign.

SBF says it has been thinking a lot about products - what kind of products do people want to use and trade? Even though these products are not yet on the market, derivatives represent a huge potential market for them. The goal of FTX is to create the best and most innovative products, so it launched tradable equity tokens for Tesla and SPY. When realizing the huge attention and trading demand for Airbnb the day before it went public, FTX satisfied users' demand for "trading Airbnb in advance". The launch corresponds to pre-IPO products. "There was no reason why we couldn't do it, so we did." SBF said.

"Earlier this year, we launched the 'FTX Charitable Foundation'. 1% of the net FTX fee will be donated to the most effective charities in the world. But even more exciting is that on the FTX Charitable Foundation page, Individual donations can be made with one click and so far FTX has donated more than $1 million and users have donated $5 million. It's amazing, but I really appreciate the support of our users."

The SBF also said FTX had been paying fees for all withdrawals from its inception until the beginning of this year, totalling $20m. Blockchain fees should not be high, especially as new traders should not spend millions of dollars on fees, because they want users to have a more seamless trading experience. They should have a good encryption experience and not be milked by Gas fees.

In response to a question about sponsoring the Biden campaign, SBF said that one of the things he thought about most was how he could do his best for charity.

Enjoy your speech edited by Planet China Daily

I am Sam Bankman-Fried, Co-founder and CEO of FTX and Consultant of SERUM. Thank you very much for inviting us to the ODaily Livityunfeng Meeting.

Defi has been a very interesting topic over the past year. I think the most interesting thing is the change that we've seen over the last few months. The industry has been doing very well in the last six months,Flow mining on Ethereum is the most representative Defi application. This is very important for the whole ecology,Because it attracts so much attention, capital and users,But it doesn't have the potential to scale sustainably.

And since 2021, a lot has changed. In a sense,Mainly is the development of Binance Smart Chain (BSC). A few months ago, the BSC began to prosper. This is because Binance is pushing it so hard and because Ethereum GAS is too high. This shows that many people who use DEFI do care about cost and speed. A very important requirement is to build DEFI in a more economical way. But a lot of people don't want to use the BSC because they don't think it's decentralized enough. I think it started a transformation of the ecosystem, and made it clear to us that something had to happen, that the ecosystem had to be able to expand. I think this approach opens the door to a lot of projects, and actually it's a positive for SERUM.

SERUM is a decentralized ecosystem, built on the Solana Common Chain. There's a lot of cool things about Solana, and one of the core things is,They are seriously thinking about scalability, how to get the highest throughput possible with the lowest possible latency and low Gas charges.Now Solana supports about 50,000 transactions a second, each of which costs about a hundredth of a cent and is settled every second, so it can become as fast and efficient as a mobile application. This is already a huge step forward, which means you can have a great user experience on it, feel natural, and not wait forever for the next block. Its core method is through a basic memory store to achieve different programs to write at the same time, and the user just need to prepare the address.

SERUM is a decentralized ecosystem that was created to think about how to scale the DEFI market, what DEFI's technology should be, what it needs to do to get there, and what it needs to do to truly scale DEFI. The first and largest program at SERUM was SERUM &NBSP; DEX, SERUM DEX is a fully on-chain, decentralized order book that allows users to send price limit orders.

At the same time, all other applications in SERUM's ecosystem can be built directly on top of SERUM's established infrastructure. One example: Raydium is the AMM of SERUM. The way it works is that, for example, when you sell USDC, Raydium puts the money into SERUM &NBSP; Dex conducts quotation. If you want to trade on Raydium, you don't have to go to its website, but you can trade on any website that has embedded Serum DEX GUI. You send an order on the order book and it automatically draws liquidity from all sources of liquidity, including Raydium.That is, Raydium can capture all the liquidity aggregated on SERUM, thus greatly improving scalability, liquidity and efficiency while ensuring that all benefits are dispersed.

This is a cool thing for DEFI Ecology to do, and there are a lot of cool things that have been done at SERUM.

Although this year's theme is decentralized ecology, many other trends have been developing recently. In the decentralized crypto world, 2021 is a big year for the industry.

At FTX, we've been thinking about several things. One of them is to expand our platform systems to meet the growing needs of our users and the number of products they need. We've been thinking a lot about the product, which is the foundation of our platform. Our goal is to make the best, most innovative product, and we hope that once they use it, they will love it.We think about what people want to use and what they want to trade for, even if it's not on the market right now.

To give you some examples,We launched an equity token on FTX,Users can trade Tesla, SPY and dozens of other equity tokens. Another product that people want to trade most is a pre-IPO product, like before Airbnb went public, people wanted to trade it, and everyone is looking at the upcoming IPO. When we realized there was a need for people to want to trade Airbnb in advance, we thought: Can we do it? When we realized we could do it, we did it, even if it didn't exist on any trading platform yet. We figured out a way to structure it, so we launched the pre-IPO product for Airbnb before it went public, to get users to start price discovery earlier, to start building liquidity.

The other thing is the MOVE contract that we launchedThere has been a lot of experimentation with options and other volatility products. Move contracts are a product that takes advantage of daily BTC price changes. You can buy tomorrow's BTC price up or down. If it goes up by $100 and down by $100, the MOVE contract will expire. This is a good product for the average trader because it is easy to understand. Volatility contracts, which allow users to predict how much bitcoin will fluctuate on a daily basis, are easy to understand. It is also cool for quantitative traders because it is a futures on volatility and protects against downside risks.

In general, our goal is to release what we can think of, whether it's been done before, or whether it's something we have to design ourselves. We saw no reason not to, so we did.

Now let's see what happens in the future.

In the future, there will be a lot of players to trade crypto derivatives. The field is expanding and the volume of transactions is increasing.I think the options market will definitely grow in the future. It's not a big market right now, but eventually it's going to be a bigger market, and that's what's happening.

FTX is going to have a lot of cool derivatives coming out in the second half of the year. We're going to see derivatives for a lot of different products, crypto assets, non-crypto assets, as well as the DEFI derivatives, which is a very clear trend.

In addition, we are trying to think about what FTX stands for and what it means, both in our relationship with our users and with the world. We are trying to make FTX have a new impact on the world, which is currently done through donations.

I spent a lot of time thinking about how and where to donate. We also want to involve the community, the council. Last year we launched the FTX Philanthropy Foundation, where 1% of the net FTX fees will be donated to the most effective charities in the world. But even more exciting is the FTX Charitable Foundation page, where users can make one-click personal donations, and so far FTX has donated more than $1 million, while users have donated more than $5 million. It was unexpected, but I really appreciate the support of our users.

I hope this will push the industry to think about how we can give back to society, in particular what impact we can have on the world as encryption gets better and better, and what we can do to create a better user experience.

From its inception until the beginning of this year, FTX paid $20m in fees for all withdrawals. Because we want the experience to be more seamless, blockchain fees shouldn't be high, especially new traders shouldn't be spending millions of dollars on fees. They should have a good encryption experience and not be milked by Gas fees.

Because Ethereum is so expensive, FTX has now made a change: if you pledge the FTT, you get a certain amount of free money to withdraw on the Ethereum network. We hope to continue to do this and let new users try out crypto assets.

Next, I would like to respond to your interesting questions collected by the Planet Daily.

First of all, you've been a role model in the industry and an icon to many people (SBF: Thank you for saying that), what innovations and products have you been most interested in lately?

I've been thinking about what would be the most retail-friendly crypto investment experience for the average trader.I spent a lot of time thinking about how to design margin rules for derivative contracts, and a lot of other things. I think these things are very important for the expansion of high-volume, liquid, robust, large-market derivatives. But at the same time, there's a lot of new people coming into crypto trading, and there's a lot more retail demand out there, and we can offer more ambitious products that make crypto finance a great first experience.

For example, we've added a lot of features in Blockfolio [which was acquired by FTX] to make it easier for people to trade and invest in crypto assets and stocks. In the US, we now have debit cards linked to your BlockFolio account, which means that US users can make purchases at Amazon, Walmart and withdraw their balance directly from BlockForlio.

We will address the pain point of the separation between banks and encrypted accounts, optimize the functionality of Blockfolio, and avoid the pain and trouble of repeated interactions between the crypto world and bank accounts. We're also building a unified service experience where users can pool their money together. It was a great experience, an important step from a mobile crypto trading application to a mobile crypto infrastructure bank.

The next question you'll be interested in is: you know we advocate effective altruism and have made a lot of donations to the Biden campaign, and you're wondering why I'm so passionate about giving and what my ultimate goal is.

I think my ultimate goal is to figure out how I can do it best. There are a lot of people who are doing amazing things for the world, working directly for some very impressive cause or charity, and I may not be able to do it as well as some of them. But one thing you can do is know where you can use your money most productively.One of the things I think about a lot is how I can do what I can for charity, what are the most effective places and ways to do it, what I can do, what is the best.

As a final question, you were curious about why we named the Miami Heat's Arena 19 years ago.

I think the basic answer is, personally, there's a lot of excitement about partnerships. Miami is a growing hub for cryptocurrency business, and this high-profile deal could attract a new set of users who have never touched cryptocurrencies before. Including the exciting initiatives Miami has been doing recently with cryptocurrencies, and we've had great meetings with regulators. I think they are really committed to doing more things that the world will notice.

But one thing I didn't do well is I didn't start a cryptocurrency exchange in 2012. In 2012 I was too busy playing League of Legends... This indirectly affects the popularity of FTX. But we're going to make our products better, and we want to let our products speak for themselves.

Finally, I would like to thank all the users for their questions and for letting me speak. We'll be talking again soon, and hopefully the industry will have a better year!