How the multi-trillion dollar derivatives industry could be disrupted by decentralized technology

Episode 83 of Season 4 of The Scoop was recorded remotely with The Block's Frank Chaparro and Hxro Co-Founder & CEO Dan Gunsberg.

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Hxro Network (pronounced “hero”) raised $34 million in a token round in November to help advance the platform’s vision of building a decentralized derivative platform on Solana.

Now, Hxro is on the cusp of launching USDC collateralized markets, which will mark the first time users are able to trade derivatives products using collateral with real value.

In this episode of The Scoop, Hxro co-founder and CEO Dan Gunsberg joins host Frank Chaparro to unpack the idea behind the Hxro protocol and to explain how Hxro hopes to solve liquidity problems that currently exist in the decentralized derivative space.

According to Gunsberg, the technology underlying Hxro Network allows anyone to create a decentralized derivative product:

“Effectively anybody will be able to come and create any type of derivative product on Hxro Network’s protocol… the core protocol is something called ‘Dexterity,’ and the idea of it is that it’s really just the generalized architecture for the payoff function and the accounting mechanisms of a derivative.”

Not only does Hxro allow users to build any type of derivative product, “the beauty” of the platform is the way in which it will unify liquidity to create more efficient markets, Gunsberg believes.


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Gunsberg explains,

“Once those markets are created, they all exist in the base layer protocol and then any application can tap those markets… so what you end up with is this unification of liquidity across many applications and many users, that all bottoms out into the same marketplace depending on the product.”

During this episode, Chaparro and Gunsberg also discuss:

  • How decentralized derivatives will capture market share from traditional finance
  • What regulators have to say about Hxro Network
  • Why complex derivative strategies enhance market liquidity

This episode is brought to you by our sponsors Tron, Chainalysis & IWC Schaffhausen

About Tron
On August 1st, 2022, Poloniex launched a faster and more stable trading system along with a
brand new user interface. Poloniex was founded in January 2014 as a global cryptocurrency trading platform. With its world-class service and security, it received funding in 2019 from renowned investors, including H.E. Justin Sun, Founder of TRON. Poloniex supports spot and margin trading as well as leveraged tokens. Its services are available to users in nearly 100 countries and regions with various languages available. For more information visit

About Chainalysis
Chainalysis is the leading blockchain data platform. We provide data, software, services, and research to government agencies, exchanges, financial institutions, and insurance and cybersecurity companies in over 60 countries. Backed by Accel, Addition, Benchmark, Coatue, Paradigm, Ribbit, and other leading firms in venture capital, Chainalysis builds trust in blockchains to promote more financial freedom with less risk. For more information, visit

About IWC Schaffhausen
IWC Schaffhausen is a Swiss luxury watch manufacturer based in Schaffhausen, Switzerland. Known for its unique engineering approach to watchmaking, IWC combines the best of human craftsmanship and creativity with cutting-edge technology and processes. With collections like the Portugieser and the Pilot’s Watches, the brand covers the whole spectrum from elegant timepieces to sports watches. For more information, visit

© 2023 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

About Authors

Davis Quinton is the Director of Podcasts at The Block and runs our flagship podcast called The Scoop, hosted by Frank Chaparro. Since joining The Block as an 'intern' in early 2022, he has worked closely with leaders across departments to translate The Block's written content into engaging multimedia formats. He holds a degree in Social Research & Public Policy from New York University in Abu Dhabi and is based in Sydney, Australia.
Frank Chaparro is the Editor At Large at The Block. Chaparro started his career at Business Insider, where he specialized in the intersection of digital assets and Wall Street, market structure, and financial technology. Soon after joining Business Insider out of Fordham University, Chaparro was interviewing top finance and tech executives, including billionaire Mark Cuban, “Flash Boys” star Brad Katsuyama, Cboe Global Markets CEO Ed Tilly, and New York Stock Exchange President Tom Farley. In 2018, he become a sought after reporter in the crypto world, interviewing luminaries such as Tyler Winklevoss, the cofounder of Gemini, Jeremy Allaire, the CEO of Circle, and Fundstrat head Tom Lee. He runs his own podcast The Scoop and writes a biweekly eponymous newsletter. He leads special projects, including The Block's flagship podcast, The Scoop. Prior to The Block, he held roles at Business Insider, NPR, and Nasdaq. For inquiries or tips, email [email protected].