DWF Labs: Nasdaq Extends Trading Hours Benefiting On-Chain Perpetual Contracts

DWF Labs stated that the Nasdaq's extension of trading hours is beneficial for on-chain perpetual contracts. The core issue faced by 24/7 trading platforms is pricing during market closures of the underlying assets, where existing EMA estimates and internal pricing algorithms may introduce basis risk and fluctuations in funding rates. As regulatory markets approach round-the-clock operation, oracles will provide higher quality reference prices, further narrowing the spread between on-chain perpetual prices and fair values. Continuous regulated price flows will reduce arbitrage costs, narrowing the basis between on-chain and off-chain markets, allowing market makers who previously lacked reliable reference prices to participate, making RWA perpetual contracts more feasible and attractive.

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