DeFiance Capital’s Arthur: Perpetual Crypto Derivatives Design Is the Key Hurdle to Sustainable Growth, While Gaevoy Sees Centralized Exchanges as the Real Issue

In a recent note, DeFiance Capital founder Arthur warns that the current product design of crypto derivatives, notably perpetual contracts, alongside a fragile market structure, remains the principal hurdle to sustainable development. He argues that recurring wealth-destructive events erode confidence and must be addressed with credible risk controls and governance, drawing on historical lessons to inform better product design.

Wintermute founder Evgeny Gaevoy counters that the core issues lie not in contract design but in the execution layer. He notes that centralized and semi-centralized venues—combining market-making, a CLOB, and custody into a single entity—amplify systemic risk and undermine resilience, suggesting reforms should target exchange infrastructure.

Both perspectives converge on building safer, more transparent protocols and governance to support sustainable development in digital assets, leveraging historical experience to improve liquidity, capital efficiency, and risk management.