London, United Kingdom, Could thirty first, 2023, Chainwire
Marking a seismic shift within the digital asset panorama, DeFi platform Bumper at present unveiled the findings of their complete simulation, exhibiting new pricing efficiencies over conventional choices desks forward of the protocol launch in August 2023.
This report delineates a milestone in monetary expertise, showcasing an altogether new monetary instrument that constantly outperforms present choices desks in producing each aggressive premia and sustainable yields, backtested towards real, multi-year historic cryptocurrency market information and choices costs.
The report is the end result of a two-year train in Analysis and Improvement powered by a $20m funding and derived in collaboration with CADLabs and the Swiss Centre for Cryptoeconomics.
Key highlights from the simulation report:
- On common, Bumper Takers paid 9.3% cheaper premia than patrons of conventional put choices.
- Through the 2022 bear market, Bumper’s simulation confirmed a yield enchancment of 46.2% for Makers in comparison with choices pricing, with out resorting to token incentives.
- The protocol remained solvent all through the simulated situations.
- Regardless of having totally different inputs and methodology, Bumper’s outcomes reveal a outstanding correlation with the Nobel Prize-winning Black-Scholes mannequin.
These outcomes have been pivotal in understanding and honing the resilience of the Bumper protocol throughout various market situations.
On the discharge of the report, Bumper CEO Jonathan DeCarteret expressed, “By difficult and doubtlessly reshaping the accepted norms of choices pricing, Bumper stands to revolutionise not simply the crypto choices market, but in addition has the potential to penetrate conventional finance and disrupt the colossal $13T derivatives market sooner or later.”
The report underscores the anticipated outcomes of Bumper’s dynamic pricing, based mostly on ahead volatility relatively than the standard implied volatility.
The findings of the simulation report positions Bumper as an immensely interesting prospect for establishments and fund managers, along with retail crypto buyers.
The financial simulation report launched at present marks essentially the most vital validation of Bumper’s progressive method so far, and indicators what could possibly be one of the vital substantial challenges to the Black-Scholes derived pricing in half a century.
Learn Bumper’s simulation report right here and for extra data on the protocol go to https://bumper.fi.
About Bumper
Bumper is a DeFi threat market that gives safety from draw back volatility within the worth of crypto property. Customers shopping for safety (Takers) set a worth at which they want to shield their crypto ought to the worth fall, however they don’t lose out if the market heads upwards. Conversely, different customers (Makers) earn a yield by offering stablecoin liquidity to the protocol.
Be taught extra about Bumper
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Contact
CMO, Jason Suttie, Bumper, [email protected]
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