Flare Options and XRPFi

Good morning, good morning, good morning everyone. Welcome to this beautiful space today. We're gonna talk There are options an excerptify Just one second guys because I'm trying to bring up the stage Dylan from the right. I also would like I don't know if that's possible that the derived main account join As perhaps go host because that brings more people in Anyway, as usual, you know, we have to fight X and Configuration sphere with the space and wait and and whatnot In the meantime, I want to catch up with will and see if Everything is okay on your end. How are you will? Dylan well sir looking forward to discussing what we've been working on with the rive This has been a couple months coming but now FXRP can be deposited into derived and be used as collateral for trading Options against XRP or a wide range of assets on the option side of the exchange as well as perpetual futures And I think there's a lot that we can dive deep into today. I'm looking forward to it Hey guys, thanks for making it go host Hey I am guessing here that this is the the rive intern and not Dylan right? Oh No, this is Dylan I I joined on both accounts just just in case it wasn't gonna work on the the Twitter Yeah, so sometimes Twitter spaces has like very odd specific settings, but yeah, yeah This will work. Yeah, it is always like this like look I've been hosting space for years now And so I've seen the entire evolution of this Application and you know it has never worked the way it should, but I'm glad that you are here So I think we can kind of get started right and you know today we have kind of a special mix in terms of the audience here because Of course we have the people from the flare ecosystem and they want the best for flare and they are very excited about XRP 5 But also we have probably Very let's say defy savvy users that are not Necessarily into flare, but they want to find the best opportunities and they use the rive, right? So Let's start perhaps with a short introduction of you know what is the rive And what can people do in this platform? Yep for sure um Derive is for in terms of purposes a options exchange We like to think of ourselves as building out all sorts of derivatives and perps included but Primarily our bread and butter is options and so it's a very specific type of financial instrument That allow users to basically construct any type of payoff they want And the payoffs are non-linear So the payoffs can actually accelerate as the price of a particular asset goes up We've been in operation for five years. We've done about 33 billion in volume And we do about 95% of the market share on chain so people kind of call us the on chain version of Derivit Very impressive numbers I must say and will I wanted to Ask you about your experience because you have been testing the rive right Yes, I have been so I've used a rive way back in the day to trade a couple big coin options on my own time I was using USDC as the collateral to trade these options positions which would be the standard um what became newly possible for xrp holders these days is You can now use xrp as your collateral to open these options positions and perpetual futures positions directly on the derives On derives exchange and that's what we're here to discuss today And I'm incredibly excited about that We can dive deeper into the mechanics with regards to how the collateral of effects our p works on the platform Oh, yeah for sure we will dive deeper into the mechanics and even the simpler stuff Like how to get started and what can you do like all things are gonna are gonna be discussed today So if you're listening to this right now, I would ask you a kind favor of resharing this space You know as usual you have to fight the algal a little bit at the beginning and I always appreciate the support of the flare community and now that we have our friends from derives I will appreciate that as well So let's get started with something like very basic for an xrp holder who has never used it options before What exactly became possible with this fxrp integration? Yep very very simply um We allowed fxrp to be used as collateral to trade any type of option on the exchange So I'm sure a lot of the community here holds fxrp Um, and you know, I'm sure there's stuff you can do with it You can probably use it um to like LP in certain pools and whatnot What we're offering and what we added is the ability for it to be used as um collateral to them participate in the options market So that by giving it this extra bit of utility um and flexibility for users Yes, sir. I can add a little bit on top of that. I think what's most exciting about this is The opportunity to access non-liquidatable leverage on your xrp Whereas in the past if you really wanted to express like directional exposure to xrp in a certain manner Normally you would need to um tap into a perpetual futures exchange Use usdc as the collateral asset and go let's say three x long or five x long on xrp whatever asset of your choice um options create a Sort of unique structured product that allow users to um open a leverage position and um Access increased directional exposure to an asset in the long direction by um by and calls or in the short direction by by inputs and This is not liquidatable leverage in the same way whereas um if you were to Place a um perps position if your um liquidation price where to get hit your position would zero out But um if that price were to get hit in theory with an option You would not zero out until um the x-period date were to hit Yeah, exactly. That's really well put um yeah, I just for example like With a perp um because i'm sure everyone here has traded a perp before Let's say your bullish xrp in the long term, you know you think it's inevitable you think it's yeah It's gonna be like a five to ten year project But in the interim maybe you don't think that it hits some sort of certain price threshold um This is where options comes in for a lot of institutions and now like retail users Which is you bring on the fxrp or other types of collateral as well And then in the interim you kind of you can actually like sell the upside so you can say like I don't think xup i think in five years or um two years x-up he's gonna hit You know four dollars five dollars But in the interim i don't think it's gonna hit that um so what i'm gonna do is i'm gonna use my ff xrp um and Basically sell the option and earn some yield in the interim um because i think you know It's still gonna take a few more years for a lot of different Institutions in the around the world to recognize it And that's what generates the yield um for a lot of users on our platform And that's how a lot of institutions and hedge funds and stuff use options. They use it As a hedging mechanism, but sometimes they also use it as a Premium or yield generation tool i like the son of that premium on my yield i always want that Um, I have to admit yeah, I have traded perps. I have not used the ride yet and mostly because You know, I need to do a little bit more research on the user side to kind of understand so this space for me Is like the perfect place or I really appreciate both of you sharing how all of these works However, though, I do have a question around timing Um, why was xrp a market that the ride wants to support now right like what demand are you guys seeing from xrp holders or traders? Yeah, official um great question. I think For us it's a few reasons. I would say first is the the way we add markets is actually based on maturity and popularity um So we added hype is actually our first ever like I would say altcoin option in last year December um and over the span of a few months um it overtook eath as our like second largest market And that's because you know hyperliquid as it had a crazy run up um with xrp um we trust We've seen xrp as like a community for you know more than we've been operational So more than five years now So it's one of those blue chips that we've seen um that stayed and That actually gives us a lot of trust to add it the other thing is um particularly for our team We operate quite deep in ethereum defi like space So we know all the defi teams in ethereum ecosystem um and for us when we added hyperliquid You know, there was a bit of overlap But it also high-think hyperliquid brought a lot of community members that we had never seen before from other parts of the I would say crypto space and for us um we realized the xrp or the ripple community is quite similar where You know the ripple community operates in this totally separate space to us um that we had never seen before and we started doing more and more investigation And we realized hold up there's a lot of these people who probably want more utility with their Like they want more defi utility with their ripple token or flare to flare um ripple token But they're you know, there's just not that like there's a some teams building on top of it But not too many um and so that's why we also decide to add it as a market We knew that there would be demand and we also you know ripple community is pretty trusted now that's been battle tested for at least five years now Yeah, I mean for sure there is a market to be served as well I like I experience this almost on a daily basis here at flare right because you know where where EVM But we're bringing all this utility for non-smart contract assets starting with xrp Uh, and we see exactly this so um, I was curious to to hear your thoughts on this and now let's talk a little bit more about the user experience Um, this part is key for for me right? I want to get started on it So can you walk us through the actual user experience from you know, hold holding xrp Minting effects are p that of course our users are aware of this But if you're new to the right you might want to learn about this and then depositing into the right and opening an xrp options or perfect Well, this issue Yeah, definitely um, I think minting yeah from xupp to fxup is very very straightforward. I think you guys did a great job of Um, yeah, I guess like facilitating that and onboarding that um, so minting fxup you first turn it into um Yeah, you first turn xup into fxup and then um, you'd go to the next step would be just going to the derive app um, you know website and then just clicking the deposit button Um, and you'll see actually like in the drop down there's a lot of different networks that you can deposit from Um, and one of them being you know as I look at it right now one of them being the Flare network And so that is where you would deposit your fxrp token from your wallet um, the moment you deposit um, you kind of just sign first there by creating your wallet Um, and then the deposit itself should take from anywhere from a couple minutes to up till like seven minutes I think without bridging partners And that's pretty much it the moment you deposit in To derive your xrp your fxup Can be used as collateral um, and you have a different you have a bunch of different accounts You can choose to create but with fxup Um for beginners particularly it's probably best to create just your standard margin account And that lets you trade any type of option um, you won't so for example if you want to trade hype options because you know The market's going crazy about hype You can use your fxup to trade hype options Um, there is one I would say yeah caveat to it which is like when you deposit your fxup you might notice Let's say you develop you deposit a hundred dollars worth of fxup Um, in your account it'll say your margin is $55 and that's because our risk engine Determines like the sort of the ltv or like how much of your Deposit you can use just based on a lot of historical factors like the price of the token and stuff like that Um, and so over time as ripple becomes more and more popular and grows in size Um that $55 margin will become higher and higher um, but for now it's just based on all the risk limits Yeah, so for every I think one dollar you're able to basically use 55 cents as margin to trade But even then you can still generate quite a lot of premium um with that Very interesting and will is there anything else um that we should add from the Perspective of a user on flare something else to be aware of Yeah, I mean like the general walkthrough would be you meant fxrp from the xrp ledger via the fasa bridge Into the flare network and then you can deposit in one click in the derive and open an xrp