Further Advanced Markets
Status: Exploratory
The markets we are building toward do not end with spot trading, perpetuals, or an order book.
As liquidity deepens and Tezos develops stronger lending, staking, derivatives, and professional trading infrastructure, entirely new categories of financial markets become practical.
We see this as a longer-term part of TEZEX: building outward from the financial primitives that already exist or are now taking shape across Tezos.
Options
Section titled “Options”Options are a natural extension of a mature derivatives market.
They let traders define risk more precisely, hedge existing positions, generate income, and trade expectations about future price movement.
Over time, an options market also creates the foundation for more sophisticated strategies built from different strikes, expirations, and combinations of calls and puts.
For TEZEX, options become more compelling once the underlying spot and derivatives markets are deep enough to support reliable pricing and hedging.
Dated Futures and Term Markets
Section titled “Dated Futures and Term Markets”Perpetuals provide continuous leveraged exposure, but dated futures introduce something different: time.
Contracts with defined maturities create a term structure between spot markets, perpetuals, near-term futures, and longer-dated futures.
That gives traders more ways to hedge, express views on future prices, and trade the basis between related markets.
As Tezos markets mature, we expect that time dimension to become increasingly useful.
Yield and Fixed-Rate Markets
Section titled “Yield and Fixed-Rate Markets”Tezos also has the ingredients for markets built around yield itself.
sTez introduces protocol-native staking yield.
TezFin and other lending markets create market-based borrowing and lending rates.
As those markets deepen, we want to explore ways to separate and trade the different components of return.
That includes fixed-rate lending, markets around future yield, and structures that separate principal exposure from yield exposure.
This is where staking and lending begin to evolve into a broader interest-rate market.
Interest-Rate Markets
Section titled “Interest-Rate Markets”Once borrowing, lending, and staking yields become sufficiently liquid, the price of capital becomes a market in its own right.
We are interested in the longer-term development of:
- fixed-rate borrowing and lending;
- forward rates;
- term lending;
- interest-rate derivatives;
- and eventually a Tezos-native yield curve across different maturities.
That would represent a significant step beyond token trading and toward a more complete financial market.
Structured Products
Section titled “Structured Products”As the underlying building blocks become available, they also become easier to combine.
Spot assets, staking yield, lending markets, perpetuals, options, and fixed-rate instruments each represent a different kind of financial exposure.
Structured products combine those exposures around a particular objective, such as income, downside protection, leverage, or a defined risk profile.
We see that as a later stage of the same progression: deeper underlying markets creating room for more specialized products on top of them.
Basis and Market-Neutral Strategies
Section titled “Basis and Market-Neutral Strategies”Connected spot, lending, staking, and derivatives markets also create opportunities that depend less on the direction of an asset and more on the relationships between markets.
Basis trades and other market-neutral strategies use differences in pricing, funding, yield, or maturity across related instruments.
These strategies become increasingly relevant as the different layers of the Tezos financial market become more connected.
Volatility Markets
Section titled “Volatility Markets”A mature options market eventually makes volatility itself tradable.
Instead of taking a view only on whether an asset rises or falls, participants trade expectations about how much it will move.
We see volatility markets as a later development built on top of deep spot, futures, perpetual, and options liquidity.
Tradable Credit and Debt
Section titled “Tradable Credit and Debt”Credit is another area that becomes more interesting as lending markets mature.
Today, lending protocols primarily create borrowing and lending positions.
Over time, those positions may themselves become financial assets.
We are interested in the possibility of markets for:
- fixed-maturity credit;
- repayment claims;
- transferable debt positions;
- collateralized credit instruments;
- and structured senior or junior claims.
That creates a path from basic DeFi lending toward a broader secondary market for Tezos-native credit.
Building Outward From the Core Market
Section titled “Building Outward From the Core Market”These markets are exploratory rather than fixed commitments.
They depend on the layers underneath them becoming deep enough and mature enough to support them.
But the direction is important.
sTez creates a protocol-native yield asset.
Lending creates market-based rates and credit.
Perpetuals and futures create derivatives and term structure.
Options introduce volatility and more precise risk management.
Together, those layers begin to form something much larger than a decentralized exchange.
Our long-term opportunity is to build progressively richer financial markets around the assets, liquidity, yield, and credit that originate inside Tezos.