EthCC · Aug 9, 2024

This keynote is an in-depth presentation on the benchmarking data used in the context of crypto derivatives settlement, both on and off chain, specifically diving into regulated use cases and benchmark data provided by independent index providers. The video discusses the significance of benchmarks in the settlement of crypto derivatives, highlighting their role as reference prices. The speaker explains that benchmarks can be sourced online or from trusted third parties and stresses the importance of using regulated benchmarks to prevent manipulation, drawing parallels to the Libor scandal. The current state of the crypto derivatives market is examined, noting its volume compared to spot markets and the growth in open interest for Bitcoin and ETH futures. Examples of exchanges using regulated benchmarks for settlement are provided, and the requirements for creating reliable crypto benchmarks are outlined, including regulatory compliance, data quality, robust methodology, and a stable platform. The talk aims to convey the maturing process of the crypto industry by adopting best practices from traditional finance.