2:10 How did you get started with Delta?
5:09 Size of Derivatives Market
10:03 Why Derivatives Exist
14:50 Financial Assurance
16:21 Puts and Calls
24:27 Sharpe Ratio
29:05 Derivatives and Institutional Capital
30:37 The Need for Liquidity
35:13 Yield, no free lunch.
37:17 XRP vs XLM Tether vs USDC
38:37 On Stellar
39:42 Black Swan Events
40:35 What is Delta Exchange?
43:26 The Delta Token
45:09 TGE SOON End of Jan 2021
47:35 Relationship between Retail and Institutional
48:24 Ideal mix is 50/50
49:17 India is the World’s Largest Derivatives Market
On Pankaj Balani: Pankaj is a seasoned business leader and derivatives trader. He is a UBS alum and has deep experiences in derivatives, quantitative finance and Asian equity markets. He also helped build and grow an e-commerce business in India which went on to raise Series C round of financing. Pankaj is a graduate of IIT Delhi and has an MBA from Indian School of Business.
Where Yield Comes from: there was a day in crypto Twitter when everybody was talking about free yield and free. There’s no free lunch. Somebody is paying for it. Yeah. So if nobody’s paying for it, then whatever tokens you are getting is not worth.
Competition: Whatever is your strength can also become your weakness in that regard, and how we tend to ignore, ignore that part. And, you know, XLM (Stellar Lumens) and XRP (Ripple) is again, a great example.
On Stellar (XLM): People had literally forgotten stellar, like, it was number six, you know, market cap coin, in 2017. And it kept falling without any activity for so long. Yes. You know, and the way table’s turned and in a matter of month, so the it’s up like 90% today. Next up is don’t, what 60% in less than a month.
Black Swan Events: So in markets, you know, whatever scenarios you think can happen more likely happens.
What is Delta Exchange: We provide futures and perpetual swaps on many of the popular coins and support as many as 70 alt coins, in many cases the only place where users can get options on many of these.
Announcing the Delta Token: The token is inspired by DeFi projects. So how DeFi projects have bootstrapped liquidity on the platform, we have taken that inspiration and similarly created liquidity pools on delta.
When will the token launch: So we’re looking to do a token generation event (TGE) very soon, probably by the end of January (2021).
Retail vs Institutional: there are both the kind of participants, so, you have institutional and retail reality is that if you try to bring all institutions upfront, then you know, you end up becoming more like an over the counter (OTC) desk, yes, you bring only retail, then you don’t have that much size. So, it has to go hand in hand.
India is the World’s Largest Derivatives Market: in India, we have about $200 billion of options trading on a daily basis and India is has done a very good job on the single stock options and futures market. So, now, when you if you see the breakdown of numbers there you have 45% trading coming from retail 40% coming from proprietary which is basically a trading desk or you know, 1% opening up a trading shop or two percents, people running a trading shop and 12% contribution is from institutions.