The Evolution and Impact of Perpetual Futures in Crypto

Perpetual futures have emerged as a dominant force in the crypto market, with centralized and decentralized exchanges processing trillions in volume in 2025. a16z crypto partners Guy Wuollet and Jay Drain Jr. explore the history of these contracts, from their origins in traditional finance to their role in modern onchain markets. The discussion covers core mechanics such as leverage, liquidation, funding rates, and oracles, while examining the potential for decentralized venues to drive price discovery for real-world assets.