The creation of perpetual futures in 2015 revolutionized crypto trading by eliminating expiry dates and enabling continuous leverage.
BitMEX co-founder Ben Delo conceived the perpetual swap during a 2015 hike in Hong Kong, addressing trader complaints about forced position closures. Customers sought a product mimicking spot trading with derivatives-level leverage but without expiry constraints.
Prior attempts included quarterly, monthly, and even 24-hour futures contracts, all failing to satisfy demand. The solution involved charging traders an overnight bitcoin interest rate, akin to LIBOR in traditional finance, despite no existing benchmark at the time.
The innovation allowed traders to hold positions indefinitely, transforming crypto derivatives markets by combining spot-like trading with leverage. Perpetual swaps became a cornerstone of crypto trading platforms globally.