Power perpetuals: Convexity of options, liquidity of perpetuals

One of the most promising features of decentralized finance is the ability to reinvent financial products in a more scalable, efficient, and transparent way. Perpetual swaps are a good example of the type of innovation that can come about when constraints around financial innovation are loosened. 

Power perpetuals are another new type of financial instrument that have the potential to offer many of the most desirable features from options markets, but in a simpler and more consolidated product. Some useful background on perpetual instruments and options markets, as well as a close look at power perpetuals, will be discussed here.