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Investment pitches

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  1. 87

    DRV: an early-stage on-chain options flywheel

    3,304 wordsTokenX ↗
    • DRV is Zana's early-stage on-chain-options bet: options are only ~0.2% of on-chain perp volume, while Derive recently hit a $390M day and $2.5B open interest.
    • 35% of protocol fees fund DRV buybacks, reported weekly in practice; author estimates ~$950M weekly volume supports ~$4.9M in annual buybacks at a 2.84bp blended fee rate.
    • At 5% of Hyperliquid's scale, author models ~100,000 users, $218B lifetime volume, and a ~$1B DRV market cap—about 5.7x its current $150–200M.
    • Zana is accumulating, but a discussed supply increase, thin liquidity, and volatility-dependent volume could break the flywheel; V3 growth and governance are key tests.