Conclusion

While the cryptocurrency market has made strides in incorporating advanced financial instruments, it still faces significant challenges. The limitations of perpetual contracts in terms of capital utilisation and hedging flexibility, along with the focus on front-end mechanisms and UX at the expense of crucial clearing and settlement processes, highlight the need for more robust financial instruments built on a sound risk and collateral management basis. These challenges underline the crypto market's ongoing evolution and potential for further alignment with traditional financial market practices.

This context sets the stage for the introduction of Crypto Valley Exchange (CVEX), a project that has been developing for over a year. CVEX aims to address the gaps in the current market by offering a decentralised derivatives trading ecosystem that combines traditional and decentralised finance best practices, enhancing the overall efficacy and accessibility of financial instruments in the crypto space.