Bumper Launches Cryptocurrency Options Disruptor
Bumper, a decentralizedย financeย (DeFi) protocol, has unveiled its groundbreaking cryptocurrency options solution. This protocol offers wholeย lotย of advantages over traditional Black-Scholes option desks, outperforming the market leader Deribit by an average of 30%. With theย capacity to disrupt a $13 trillion market, Bumperโs equation promises impressive improvements.
Achievement through Research and Collaboration
Bumperโs innovation is the result of a three-year research and development program, supported by $20 Million in early funding. The protocol was developed in collaboration with the Swiss Center for Cryptoeconomics and coded by renowned developers Digital Mob. These developers have a proven track record in projects such as Barnbridge, Gnosis, and Filecoin.
Cost Efficiency and Incentives
Bumperโs protocol undercuts traditional options desks by one- third while offering liquidity providers (LPs) APR between 3-18% for supplying USDC. Early adopters of the protocol can likewise takeย advantageย of $250,000 worth of incentives, either by protecting their Ethereumย (ETH) or earning on their USDC.
Zero-Liquidation Risk and Lower Costs
Bumperโs Co- founder and CEO, Jonathan DeCarteret, outlines that the protocol eliminates downside volatility and allows leveraged positions with zero-liquidation risk. Furthermore, it offers users an average cost advantage of 30% compared to the market leader.
Real Yields for Liquidity Providers
The protocol charges a premium based on market conditions, rebalancing, and proximity to the userโs floor. This generates real yields ranging between 3-18% APR for liquidity providers, without the need to sell option contracts.
Revolutionizing the Options Market
Bumperโs innovation challenges the fifty-year-old Black-Scholes model that has fueled the $13 trillion options market. Regardlessย of using different inputs and a novel rebalancing mechanism, Bumper is onย theย brighterย side correlated with Black-Scholes, but more efficient even in volatile market conditions.
Expansion and Support
Bumper has been deployed to the Ethereumย (ETH) mainnet and asย ofย now accepts deposits in Ethereumย (ETH) and USDC. The protocol intendsย to rapidly add support for additional ERC-20 tokens and multi-chain functionality.
Hot Take
Bumperโs launch of its cryptocurrency options solution marks a wholeย lotย of milestone in the DeFi space. By offering lower costs, zero-liquidation risk, and real yields for liquidity providers, Bumper has theย capacity to revolutionize the options market. Its collaboration with industry leaders and innovative approach positions it as a disruptor in the $13 trillion market. As more users adopt the protocol and additional features are added, Bumperโs impact isย veryย likely grow.
Owen Patter is a distinguished crypto analyst, accomplished researcher, and skilled editor, leaving a notable imprint on the cryptocurrency landscape. As a proficient crypto analyst and researcher, Owen delves into the intricate realms of digital assets, offering insights that resonate with a diverse audience. His analytical acuity is harmoniously paired with adept editorial skills, allowing him to transform complex crypto information into easily comprehensible content.
