Adapt or Die

Summary

In this episode, Arthur Hayes explains how the perpetual swap—originating from BitMEX’s 2016 innovation—offers a never‑expiring, 24/7 derivative that consolidates liquidity and simplifies trading compared to traditional futures. He argues that perps are poised to displace conventional futures across all asset classes, with major exchanges like SGX, CBOE, and even decentralized platforms such as Hyperliquid already launching their own versions. Hayes also recounts the technical and cultural challenges BitMEX faced in perfecting the funding‑rate mechanism and socialized loss model, underscoring why traditional finance must adapt or risk obsolescence.