ArenaCFx — 2021 In Retrospect And The Year Ahead | ArenaCFx

2021 was a transformational year for ArenaCFx. We saw:

• Users growth: +300%
• Daily trading volume: $47.9M to $90M = +11,089%
• Open Interest: $9.8M to $24.6M = +121.7%
• Total interest paid: $40M+
• Average APY: 23.7%
• TVL: $12.7M to $289M = +​​4,825%

We are incredibly proud of these milestones because they are the result of focusing not only on building for the crypto markets today, but also for what we believe will remain true ten years from now:

• In the crypto markets, end-users care most about their profits.
• Most investors are passive, not active, meaning they prefer to “set something and leave it” rather than trade multiple times a day.
• Passive capital wants the highest possible yield for the least amount of mental effort and risk.

Guided by these truths, ArenaCFx is created to enable passive investors to earn yield directly from the volatility and leverage available in the crypto derivatives markets without being a full-time professional trader or money manager.

Partnerships

In 2021, we formed several long-term partnerships with some of the most recognizable names in the crypto space including Blockchain.com and Binance.

Blockchain.com

Blockchain.com is ArenaCFx’s largest partnership. The $30 million deal will bring crypto yield to all ArenaCFx Users.

This partnership will strengthen ArenaCFx’s growth trajectory in 2022 and increase metrics across the board including: trading volume, number of active users, and market capitalization.

Binance

ArenaCFx partnered with Binance, a leading digital asset exchange and trading platform. Binance has integrated ArenaCFx into their ClearLoop network, which is their unique instant clearing and settlement solution that allows institutions to trade the exchange’s products seamlessly with their funds safely secured within Binance’s platform.

2022 Market Expectations

Crypto Yield

Since 2019, the popularity of staking has taken off, allowing passive capital investors to easily earn competitive yield on their crypto assets. There are currently several yield products in the world of crypto and DeFi, fitting different investor appetites. Among these products, the investment markets in crypto have gained a ton of traction. Currently, most traditional banks are only offering a mere APY of 0.75% on savings accounts in the U.S.. Meanwhile, crypto investors are earning double digit interest in the markets.

As the Home of Crypto Yield, ArenaCFx is dedicated to being at the forefront of generating great yield for both institutional and individual investors. To give you a sense of the yield-generating opportunities available on ArenaCFx, users are currently earning 3% ROI (daily average)* on contracts.

Crypto Derivatives

For the first time in crypto history, the SEC approved the launch of several bitcoin futures ETFs in 2021.

According to TokenInsight, the total perp trading volume in Q3 2021 alone ($13,428B) was higher than the total perp trading volume in all of 2020 ($12,391B). However, compared to global derivatives, crypto derivatives trading remains in its infancy. With the new suite of crypto yield being powered by its futures exchanges such as deliverable perpetuals and repo, ArenaCFx sees crypto yield 2.0 opportunities being the frontier to watch in 2022. In the next evolution of crypto yield opportunities, users will find new ways of sourcing yield “direct from market” rather than interact with protocols or centralized intermediaries.

Stablecoins
No doubt stablecoins will continue to play a major role in the crypto finance markets and anchor the future of digital finance. A report issued by the European Central Bank notes that since 2020, the market capitalization of stablecoins has increased from $5 billion to $120 billion. With the increasing application of stablecoins, we believe the stablecoin market cap will reach $500 billion in 2022.

ArenaCFx already has several stable coins integrated in its platform and will endeavor to add more stable coins, to meet the yield-generation needs of existing and new crypto market participants.

Hybrid DeFi models

Another way ArenaCFx has integrated the DeFi ethos across its platform suite is by introducing a new way for passive capital investors to earn yield direct-from-market. For example, integrating an AMM primitive function, the hybrid model has resulted in greater capital efficiency for users, allowing them the opportunity to access even higher yields. We anticipate many more financial primitives functions as a tool for offering users access to better yields.