An Updated Look at On-Chain Structured Product Protocols

On-chain derivatives protocols have seen generally slow adoption relative to other DeFi verticals. Like other on-chain dApps, these protocols are still low performance, costly to use, and likely to see most adoption when composed into novel, easy-to-use products (e.g., yield farming vaults). 

Permissionless structured products are a powerful DeFi use case and vaults built on derivatives protocols likely have the largest design space. Early generations of on-chain structured products consisted of basic vaults for indices, managed portfolios, and yield farming. Composable, full-featured derivatives protocols support a much wider design space for on-chain yield and risk management.