Can a Crypto Derivative Be Priced Using a Midpoint Matching Model?

Yes, a crypto derivative, such as a perpetual swap or a futures contract, can be priced using a midpoint matching model. The model would reference the best bid and offer from the lit exchange for that specific derivative contract.

This ensures that the execution is non-disruptive and offers a price improvement over the public market's spread for the derivative. This is particularly useful for large derivative block trades.