The onchain derivatives protocol market is booming, with DeFi’s total value locked (TVL) reaching $82 billion by Q4 2024, showcasing impressive growth.
Decentralized finance (DeFi) leverages blockchain to create an open, global financial system free from traditional intermediaries and geographic limitations. The exponential growth of DeFi has led to a wide range of innovative financial products, such as decentralized lending and borrowing, stablecoins, and decentralized exchanges. This article explores one of DeFi’s most promising innovations: onchain derivatives protocols. We’ll examine their functionality, impact on the broader DeFi ecosystem, the top players in the market, and so much more.