XRPL wants a Hyperliquid-like sidechain for the $40B options trading market, but one design choice could decide everything
XRPL is proposing a sidechain to compete in the $40 billion options market, modeled after Hyperliquid, with a key focus on American-style options.Summary
The XRP Ledger (XRPL) community is exploring a sidechain designed to capture a portion of the growing $40 billion options trading market, drawing inspiration from Hyperliquid’s success in perpetual futures. This move represents a strategic shift for XRPL, focusing on specialized financial primitives like derivatives rather than attempting to replicate general-purpose DeFi ecosystems. The proposal emphasizes the importance of execution quality, risk controls, and attracting liquidity, particularly by supporting American-style options, which are less common in the crypto space. However, success hinges on overcoming challenges related to building a robust risk engine, attracting market makers, and ensuring reliable operations, especially during volatile market conditions. The proposal also highlights XRPL’s growing focus on compliance tooling, potentially enabling a hybrid approach with both permissionless and permissioned liquidity pools. Ultimately, the sidechain aims to replicate Hyperliquid’s flywheel – quality execution leading to liquidity, and vice versa – to establish a competitive derivatives venue.
(Source：CryptoSlate)