Derive has been building onchain derivatives for close to five years. In that time, the space has moved from early AMM experiments to today’s orderbooks, vaults, and institutional integrations.
Our constant challenge was the need for real liquidity and professional market-makers willing to quote onchain. FalconX onboarding to Derive as a liquidity provider is an important step toward solving that.
How FalconX Fits In
FalconX is now quoting across Derive’s options markets; both the central limit orderbook and RFQ. This helps support tighter spreads, larger posted size, and more consistent liquidity, especially in short-dated options where precision matters most.
To facilitate this, FalconX uses a custodial off-chain collateral system. Balances held with FalconX are represented onchain as fxUSDC for trading and settlement. P&L reconciles in real time, with settlement in USDC.
While this integration is focused on FalconX’s trading activity today, it lays the foundation for continued institutional engagement with onchain markets.
Where Things Stand Today
Options quoting is already live and scaling. Funds are beginning to put on size, and open interest is climbing. This collaboration underscores the growing role of institutional liquidity providers in shaping the next phase of onchain trading.
We’ve always believed the best markets would eventually be onchain. We’re one step closer.
