Highlights:

• Ten years ago, BitMEX pioneered the perpetual swap, establishing itself as the first exchange for cryptocurrency derivatives. Today, this model has been widely adopted by various exchanges.
• Current CEO Stephan Lutz states that he welcomes competitors copying this financial innovation.

"Good artists copy, great artists steal," a quote often attributed to Steve Jobs, reflects the sentiment shared by Lutz regarding the perpetual swap's impact on the market.

Lutz believes that as more traders utilize the perpetual swap, the overall health of the market improves. The perpetual swap, unlike traditional futures contracts, has no expiration and functions similarly to margin trading, creating a rolling series of contracts with a unique funding mechanism that maintains price alignment with the underlying asset.

"It was copied by everyone because that’s just open-source know-how," Lutz remarked in an interview with CoinDesk. "The whole world works on it, which is like the best form of flattery we can wish for in the end."

This financial instrument has addressed the critical challenges in the early crypto market by mitigating counterparty credit risk, thus fostering the growth of futures trading.

Lutz warns that the crypto trading cycle operates at a much faster pace, which requires traders to respond quickly to market developments. Despite BitMEX no longer being the largest derivatives exchange by volume, it maintains a dedicated user base, partially due to its neutrality in market-making, ensuring a fair trading environment.

In the coming decade, Lutz envisions BitMEX continuing to innovate within the bitcoin derivatives space while expanding its offerings selectively, potentially leading to new creations that may again capture the industry's interest.