Decentralized derivatives trading platform Gains Network announced the launch of the new gTrade V7 version, introducing gETH, gUSDC and adding multi-collateral deposit function. Multi-collateral means that traders can choose from a range of cryptocurrencies as collateral for their positions, currently able to choose USDC, ETH or DAI. The V7 version will also introduce liquidity yield tokens gUSDC and gETH. In addition, Gains Network revealed that gTrade has processed over 1.38 million transactions in the past 18 months, with a total trading volume of $56.4 billion and fee income of $38 million.

As the 12th of January crawls closer along the term structure, we see the first signs that vol markets are anticipating different responses between BTC and ETH. While the kink has moved closer and grown strong on BTC’s term structure of ATM implied volatility, ETH’s mid-Jan kink has largely resolved as a result of a rise in the 1W vol level. We see a similar departure in the skew of ETH’s vol smiles, which have slightly towards OTM calls in contrast to the spread seen in the skew of BTC smiles. However, there is little to separate the futures markets of both majors as perpetual swap funding rates explode positively and future-implied yields rise to their highest levels since July 2022.

The kink in the term structure of ATM volatility has shifted to shorter tenors as the expected date for an ETF announcement draws nearer, and outright volatility levels for tenors later than the end of January remain stable in the mid 50s. We have seen a recovery in BTC’s short tenor skew, driven by an increasing demand for OTM calls that has not been replicated in ETH’s surface. Instead, we see 1W ETH upside volatility falling while the 1M smile prices for a more neutral skew. Futures-implied yields climb higher once more, while the funding rate of both assets’ perpetual swaps continues to signal strong demand for leveraged long exposure.

Rollup.Finance, a decentralized derivative trading platform, announced that the first round of retrospective airdrops will be open on December 20th Beijing time, and the blind box application page for airdrop claims will be valid until January 19, 2024.

Decentralized derivative trading platform Bluefin has reached a strategic partnership with blockchain risk analysis service provider Chaos Labs. This partnership will help Bluefin optimize risk management for encrypted protocols and protect user funds.

Deribit, a derivatives exchange, announced that it will increase margin requirements gradually by increasing the margin model variable from 45% to 60% by 5% per day, due to potential rapid price and volatility changes. The increase in margin will force traders to provide more collateral, theoretically preventing liquidity crunch. Deribit's Chief Commercial Officer, Luuk Strijers, said that the platform's reserves are secure and that Deribit has "sufficient margin for all open positions." A Deribit representative added that the company's trading activity has not reached current levels since 2021.