This is part 1 in a series on Constant Function Market Makers and on-chain derivatives. If you are not familiar with financial derivatives, I recommend you check out this page for a quick definition. It will help you make sense of the concepts discussed in this article.Key TakeawaysWhile futures are a widely used instrument in crypto, option protocols failed to gain traction in DeFi. Leading causes are the lack of liquidity and disproportioned risks to LPs.Introduced on December 7th, 2021, @P...