Our weekly crypto derivatives analytics report delves into macro events, the current state of crypto and trading signals from spot trading volume, and futures, options and perpetual contracts.

December's end-of-year options expiration brought an unexpected drop as realized volatility fell to the lowest levels of the month. Perpetual swap open interest remained stable, indicating these markets weren't heavily used for hedging against expired options, likely contributing to the muted volatility. 

While most expired open interest in Bitcoin (BTC) and Ethereum (ETH) hasn't been reinvested, the balance of calls and puts remains consistent. Notably, ETH options are pricing in higher implied volatility as compared to BTC, particularly for shorter expirations, leading to a flat term structure for ETH, while BTC is offering cheaper options exposure.

In the perpetual markets, low volatility and minimal spot movements have led funding rates for nearly all tokens to mirror broader market sentiment throughout the holiday season. On the options side, BTC's term structure is noticeably lower and steeper than ETH's, with realized volatility now dipping below implied volatility levels, highlighting an intriguing shift in market dynamics.

Please check out the report’s highlights.

Open Interest Solid Amid Year-End Options Expiration

Although open interest for both BTC and ETH perpetual swaps hasn’t returned to early December 2024 highs, it remained robust throughout the significant end-of-year options expiration event. This suggests that these markets weren’t heavily utilized to 

 of the expiring options contracts, likely contributing to the lack of volatility observed during this period. Instead, trading volumes have dipped noticeably during the winter holiday season, coinciding with a collapse in realized volatility back to December 2024’s lowest levels.

BTC Option Curve Remains Steep During Call-Put Parity

The expiration of December's end-of-year options didn’t trigger the anticipated surge in volatility; instead, realized volatility has plummeted to the lower end of its recent range. The implied volatility term structure remains steep compared to both its recent behavior and ETH's, with longer-dated implied volatility around 57%, and 1-week at-the-money options trading about five points lower. Much of the expired open interest hasn’t yet been rolled into new positions, maintaining a neutral balance between puts and calls. Consequently, BTC's options market positioning is relatively neutral, lacking the leverage it had at the start of December 2024.

Huge ETH Option Expiring Doesn’t Cause Volatility

A late December spike in realized volatility didn’t carry into the new year, with ETH’s spot price currently exhibiting volatility below that of short-tenor implied volatility. Interestingly, the implied volatility term structure has undergone a steepening and re-flattening over the past week, contrasting with BTC’s slightly steeper profile. This suggests that ETH’s options market is anticipating higher short-term volatility in spot price movements. 

Despite the significant expiration of options open interest at the end of December 2024, which didn’t lead to a rollover into later expirations, call options continue to dominate the market and have increased at the start of 2025.

Advanced

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Bybit X Block Scholes Crypto Derivatives Analytics Report (Jan 2, 2025): BTC Options Continue to See Call-Put Parity, With Lower Short-Term Volatility Expected

Dive into FLock, a decentralized platform that revolutionizes the way AI models are developed, trained and deployed.

Artificial intelligence (AI) is poised to transform countless industries, but its development often raises questions about privacy, control and inclusivity. 

 is a unique decentralized platform that democratizes AI training, fine-tuning and inferencing. With its blockchain-powered infrastructure, FLock ensures transparency, security and community-driven decision-making, paving the way for AI models that align with established societal values. 

In this article, we’ll explore how FLock decentralizes AI training, its key features and its potential impact on developers, communities and users.

 platform that revolutionizes the way AI models are developed, trained and deployed. By leveraging blockchain technology and a novel approach called 

, FLock addresses critical issues in AI development, such as centralized control, lack of transparency and privacy concerns.

At its core, FLock’s mission is to democratize AI by enabling communities to participate directly in the creation and refinement of AI models. Through federated learning, FLock trains AI models across multiple decentralized devices or servers. This method ensures that data remains local, eliminating the need for raw data exchange while still enabling robust model training. By decentralizing the training process, FLock not only protects individual privacy, but also fosters a more inclusive ecosystem in which diverse contributors can collaborate.

What sets FLock apart is its integration of 

. This ensures that all contributions — whether data, compute power or feedback — are transparently recorded and fairly rewarded. Blockchain tech’s immutable ledger enhances trust among participants and safeguards the process against manipulation. Additionally, the platform’s on-chain incentive mechanisms encourage participation from a wide range of contributors, ensuring that rewards are distributed equitably.

Ultimately, FLock empowers communities to develop bespoke AI models tailored to their specific needs. By decentralizing the process and prioritizing transparency and collaboration, FLock breaks the monopoly of large corporations, creating an AI ecosystem that aligns with public ethics and societal values.

, an Oxford alumnus with a robust background in AI and blockchain technology. Sun, who serves as FLock's CEO, has an impressive career trajectory, having worked as the Director of AI for the Royal Bank of Canada and as an AI Research Fellow at Imperial College London. His vision for FLock stems from a deep understanding of both the technical and ethical challenges of AI development.

The founding team also includes other Oxford alumni, boasting over a decade of combined experience in AI research and the cryptocurrency industry. This team brings a collective blend of academic excellence and practical expertise that positions FLock to lead the decentralized AI movement.

FLock has successfully raised $11 million in funding across two rounds, reflecting strong investor confidence in its vision. In May 2024, FLock secured a $6 million seed round co-led by Lightspeed Faction and Tagus Capital, with additional backing from Digital Currency Group (DCG), Volt Capital, OKX Ventures and Inception Capital.

Later, in December 2024, FLock announced a $3 million successful funding round led by DCG and joined by prominent names like Animoca Brands, Fenbushi Capital, GnosisVC and GSR. These investments are being channelled into enhancing the platform’s testnet and federated learning client, accelerating FLock’s mission of enabling secure, collaborative AI development.

With this funding and over 1,500 nodes contributing from platforms like Numerai and Kaggle, FLock is rapidly scaling its impact on decentralized AI training.

FLock AI revolutionizes AI development through its decentralized training framework. This approach allows participants to contribute to AI model training without ever sharing their personal data. Instead, models are trained locally across devices using federated learning, which ensures that data remains with its owners while still enhancing the accuracy of the model overall. 

FLock’s reward system is designed to incentivize active participation. Contributors who provide data, computational power and/or feedback are compensated with FLOCK tokens, ensuring a fair distribution of rewards. 

FLock empowers its community through a robust governance framework. Decisions regarding AI model development, deployment and ethical considerations are driven by the community, ensuring alignment with established societal values. Through blockchain-based voting mechanisms, contributors can influence the direction of AI projects, fostering transparency and public accountability. 

FLock’s modular architecture allows contributors to participate in specific aspects of AI model development. Whether providing raw data or computational power or even refining algorithms, the platform enables a collaborative and scalable development process. 

At the core of FLock’s philosophy is its commitment to privacy and security. By leveraging blockchain technology, the platform ensures that no single entity controls the AI development process. Data remains local and protected by cryptographic measures, while the immutability of blockchain guarantees transparency in every transaction and model update. 

 begins with a blockchain and an AI layer.

The blockchain layer underpins FLock’s incentivization and security mechanisms.

The AI layer facilitates model training, refinement and deployment, leveraging both centralized and federated approaches.

Let’s have a look at the supply and demand for the FLOCK token.

FLock adopts a 1:2 ratio model between team/investors (33.3%) and community (66.7%), prioritizing community-driven growth and ecosystem expansion. The majority of tokens are allocated to incentivize user participation and long-term ecosystem success.

FLock aims to improve the future of AI development by decentralizing the training process and ensuring transparency, privacy and inclusivity. By leveraging blockchain and federated learning, FLock empowers communities to contribute to AI creation without compromising on privacy. Its innovative reward system and community-driven governance foster a fair and collaborative ecosystem. 

With significant backing and a growing network of contributors, FLock is positioning itself as a leader in decentralized AI, offering a more ethical and secure alternative to traditional AI development models. As it continues to scale, FLock is set to transform the way AI models are built and deployed.

 — and earn a share of a 10 million FLOCK prize pool. For more details, visit 

Intermediate

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FLock AI: Decentralized AI Training

In this tutorial, we’ll explore how you can complete a series of tasks in Network3 for Bybit Web3 Airdrop Arcade.

Task 1: Register for a Network3 Account and Connect Your Bybit Wallet 

: Navigate to the campaign page and click on the 

task. Click on the task, and Galxe will ask to redirect you to the Network3 register page.

: Register for a Network3 account using your email address. You may indicate a 

Task 2: Download the Network3 App and Run a Node for One Hour

 and choose your operating system to download the Network3 app.

 or powerbutton, depending upon which operating system you’re using. For ease of reference, we’ve used macOS and iOS as examples below.

: Keep running the node until the timer reaches 

Beginner

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How to Complete Network3 Tasks for Bybit Web3 Airdrop Arcade

Bybit launched the Bybit Merch Creative Challenge for university students worldwide, offering a $50,000 USDT prize pool.

The S&P 500 dropped 0.22% on Thursday, its fifth straight decline, with investors eyeing Friday’s economic updates. Coindesk Indices, an index measuring broader cryptocurrency market performance was up by 2.03%, with Bitcoin and Ether rising by 2.79% and 2.70%, respectively in the past 24 hours.

Today's top performer is XRP, which surged 1.9% following a rise in price driven by increased open interest and positive market sentiment.

Ripple (XRP), launched in August 2012, is a blockchain technology company focused on improving international payments with its cryptocurrency, XRP. XRP price surged due to increased open interest, a major XRP transfer, and market sentiment linked to Trump's inauguration. Bullish momentum is supported by high short liquidations, with key resistance levels to watch for further price movement.

Check Out the Latest Prices, Charts, and Data of 

 for university students worldwide, offering a $50,000 USDT prize pool. Participants can design exclusive Bybit merchandise, with submissions open until Jan. 15, 2025. Winners will be announced on Feb. 1, 2025, across four prize categories.

Yesterday, Bitcoin Spot ETFs recorded a total inflow of $84.8M, driven by $107.9M from non-GBTC funds, partially offset by a $23.1M outflow from GBTC.

, offering an airdrop for participants who complete tasks like swapping and bridging using the Mango wallet. Points earned through tasks determine airdrop rewards. Join via the Mango wallet and follow steps on the testnet dashboard.

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Bybit Launches $50,000 Merch Design Challenge for University Students Worldwide

Bybit Learn

web3

In this article, we'll explore how you can complete the Treasure Hunt with Black Myth: Wukong on Bitlayer DApp Center.

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 on the Bitlayer DApp Center and explore together with GamerBoom, Anome and PoPP to unlock exclusive Black Myth–themed treasures! On your treasure hunt journey you’ll not only find new ways of play with 

, but also unlock various treasures, including but not limited to the following:

: Bitlayer points will be redeemed after the event ends, and rewards from the project will be distributed according to the project's official announcements.

Complete GamerBoom Wukong’s Web3 Odyssey Tasks on DApp Center

: Complete the tasks listed on the page to win 1,000 GPT points and earn a chance to win from the 1,000,000 Bitlayer points prize pool. You can also 

: Navigate to the GamerBoom website and click on 

button at the top right corner of the page. You can choose your preferred login method: Email, Twitter, Telegram or Discord, or connect your wallet directly.

If you choose to connect your wallet directly, you’ll need to bind an email address to your account. This account will be used for GamerBoom Client login. To do so, simply click on the wallet address at the top right corner and enter your email address and verification code.

to download Wukong’s Web3 Odyssey. Please 

 that the software is currently only available for Windows systems.

: While waiting for the game to be downloaded, click on the 

tab on the left sidebar and bind your Twitter and Telegram accounts. Please 

 that you’ll need to bind your accounts first before you can start any tasks.

: Now that your accounts are linked, you can proceed to complete the Daily Sharing Quests and earn points. 

: After your game has been downloaded, launch the GamerBoom client and use your email and password to log in.

: Once you’ve logged in, you’ll be able to see your points displayed on the client’s interface. Start the game from the client, and the GamerBoom points orb will appear. All you have to do now is play the game and earn rewards!

Complete Anome Wukong Card Play Tasks on DApp Center 

: Complete the tasks listed on the page. The top 100 users will share a $20,000 airdrop of Anome tokens. If you’re in the top 20, you’ll receive an extra set of the 

game. Meanwhile, the first-ranked user will receive a physical set of 

Black Myth: Wukong Collector’s Edition. 

You’ll also have a chance to win from the 1,000,000 Bitlayer points prize pool. 

at the top right corner of the page and select 

: Once you’ve successfully switched networks, you’ll see a display of cards under each level. Each level will have a special card under the 

: Click on your wallet address and ensure that your wallet is under 

 that the game is only gas-free under the AA Address.

 that your wallet needs to have sufficient funds in USDT.

: You’ll need to mint at least five cards before you can start a game battle. To view all the cards you’ve minted, simply click on the 

icon on the left sidebar to enter the game mode.

in the top right corner of the page to select the cards you want to use in the battle. 

 that if fewer than five cards are shown, you’ll need to head back to the 

 page to acquire more cards, and click on 

under each card to complete the free authorization.

: Once done, return to the room interface and select a room to start the battle. All wallets used for playing cards will be in a gas-free state.

Complete PoPP Wukong’s Planet Tasks on DApp Center

: Complete the tasks listed on the page for a chance to win from the 1,000,000 Bitlayer and 200,000 PoPP SD prize pools. 

: Search for @PoPPtothemoon_bot on Telegram and tap on 

: Upon launching the mini app, the Telegram bot will assess your account value, based on multiple factors, and award you with SD, Probe and Initial Farm Duration. SD is the social energy of the PoPP ecosystem and plays an important role for token airdrops and token mining after token generation events.

button to start mining SD, which has a mining rate of 0.001 SD per second. 

 to collect your SD every once in a while by clicking on the 

button and restarting your farming. Please 

 that different users have different farm times.

The Home interface will periodically display that the small rocket has detected a new planet. 

: Tap on the planet to enter the Exploration interface, which will display the treasures you can obtain from the planet. 

button at the bottom, and the system will randomly draw a reward, such as an amount up to 2,024 SD, an ETH Box (which can be exchanged for cash rewards), Probes, or tokens such as MNT or USDC. For every planet that you explore, your Probe will decrease by one.

tab at the bottom of the screen to enter the Invitation interface. Then, tap on 

to refer your friends. Every successful referral will allow you to receive rewards, such as 15 SD and 10% of your friend’s earned SD from tasks, check-in and farming, one Probe, an instant one-minute of rocket farming time (with a maximum of 16 hours) and 20% of the Star they’ve paid. 

Once you’re a PoPP TBA holder, you’ll be able to enjoy the following bonuses in the game:

How to Complete the Treasure Hunt With Black Myth: Wukong on Bitlayer DApp Center

Grab Up to 5,000 USDT in Rewards

Grab Up to 5,000 USDT in Rewards