**[DeFiance Capital CEO: Structural Defects in Crypto Perpetual Contracts Require Safer Products]**
The CEO of DeFiance Capital posted on the X platform, stating that the design and market structure of crypto derivatives, particularly perpetual contracts, are major issues facing the industry. Without improvements, sustainable growth will be difficult to achieve. He mentioned that the market cannot continue to "pretend everything is fine" after the cyclical evaporation of massive wealth, and the industry needs more robust mechanisms.
He reflected on the situation in March 2020, when Bitcoin plummeted 50%-70% within hours, and the crash of altcoins in October, noting that systemic failures in key price discovery markets exacerbated the downturn. He pointed out that the "Quanto model" design flaw in BTC perpetual contracts amplifies reflexive risks during downturns and makes hedging difficult. Later, with the increased use of stablecoins, USDT-margined perpetual contracts replaced BTC-margined contracts, significantly improving market stability and reducing volatility.
He expressed hope for the next generation of perpetual contract products to enhance the safety and market quality of crypto derivatives.