Bumper, a DeFi platform, has unveiled the outcomes of a complete simulation displaying new pricing efficiencies over conventional choices desks, marking a possible revolution in each the crypto choices market and the colossal $13T derivatives market.
London, United Kingdom, Might thirty first, 2023, Chainwire
Marking a seismic shift within the digital asset panorama, DeFi platform Bumper as we speak 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 know-how, showcasing an altogether new monetary instrument that constantly outperforms present choices desks in producing each aggressive premia and sustainable yields, backtested in opposition to real, multi-year historic cryptocurrency market knowledge and choices costs.
Key highlights from the simulation report:
- On common, Bumper Takers paid 9.3% cheaper premia than consumers 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 circumstances.
- 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 circumstances.
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 moderately than the same old implied volatility.
The findings of the simulation report positions Bumper as an immensely interesting prospect for establishments and fund managers, along with retail crypto traders.
The financial simulation report launched as we speak marks essentially the most important validation of Bumper’s modern method so far, and indicators what may very well be one of the vital substantial challenges to the Black-Scholes derived pricing in half a century.
Bumper is a DeFi threat market that gives safety from draw back volatility within the worth of crypto belongings. Customers shopping for safety (Takers) set a worth at which they want to shield their crypto ought to the value 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.
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