The concept of the perpetual swap was born out of frustration with traditional futures contracts, which were not meeting the needs of BitMEX's customers. Delo and his team were trying to find a way to offer a product that would allow traders to buy and sell with leverage, without the constraints of traditional futures contracts.
The breakthrough came when Delo's friend, a derivatives trader, suggested charging traders the bitcoin overnight rate, which would allow the contract to never expire. This idea led to the development of the perpetual swap, which was launched in May 2016. The product was a huge success, and its impact was felt across the crypto market. Today, the perpetual swap is one of the most widely used financial products in the crypto space, with a daily turnover of billions of dollars.
The story of its creation is a testament to the power of innovation and the importance of listening to customers. By understanding the needs of traders and developing a product that met those needs, BitMEX was able to revolutionize the crypto trading landscape. The perpetual swap's success has also attracted the attention of traditional finance regulators, who are now considering how to incorporate this product into their frameworks. As the crypto market continues to evolve, it will be interesting to see how the perpetual swap and other innovative products shape the future of trading.