> You can buy, sell, combine, or split their risk profiles in different manners to get properties that are useful in different scenarios.

I would contend that the only reason things like options, futures, etc. are actually useful in markets like, e.g., the stock market, is, in no small part, due to the highly liquid nature of the underlying. Since the underlying is highly liquid, these derivatives are highly liquid, and therefore we can actually use them for things like de-risking. Of course, people on WSB still gamble using options, but basically they're meant as a hedging mechanism.

Even though these "financial primitives" on the blockchain are neat from a technical standpoint, they tend to blow up precisely because the markets are not liquid enough (so second-order effects are amplified).