Bumper, a new player in the cryptocurrency options market, is set to disrupt the industry with its $20 million bid to undercut Deribit. The platform is launching on September 7, 2023, offering competitive pricing and a user-friendly interface. Stay ahead of the game and explore the exciting opportunities provided by Bumper’s crypto options trading.
[PRESS RELEASE – London, United Kingdom, September 7th, 2023]
Bumper, a revolutionary decentralized finance (DeFi) protocol, has officially launched its innovative crypto options platform, aiming to disrupt the $13 trillion market dominated by market leader Deribit. Powered by a cutting-edge equation, Bumper offers unprecedented improvements over traditional Black-Scholes option desks, boasting an average cost reduction of 30%.
The launch of Bumper is the result of a three-year-long research and development program, with a total funding of $20 million. The project collaborated with the renowned Swiss Center for Cryptoeconomics and enlisted the expertise of world-class developers from Digital Mob, known for their work on protocols like Barnbridge, Gnosis, and Filecoin.
Bumper’s protocol is expected to revolutionize the options market by significantly undercutting traditional options desks by one-third. Moreover, liquidity providers (LPs) who supply USDC to the protocol can earn annual percentage rates (APR) ranging from 3% to 18%. Early adopters of the platform will also have the opportunity to share in $250,000 worth of incentives by either protecting their ETH holdings or earning on their USDC.
Bumper’s Co-founder and CEO, Jonathan DeCarteret, expressed his excitement about the breakthrough achieved by the protocol. He highlighted that Bumper eliminates the downside volatility of users’ crypto assets, enabling leveraged positions without the risk of liquidation. Moreover, when considering the significant cost advantage over the market leader, the value proposition becomes crystal clear.
The protocol introduces a premium charge, which is calculated incrementally based on market conditions, protocol rebalancing, and proximity to the user’s floor. This allows for real yields for liquidity providers, offering potential returns ranging from 3% to 18% APR on average, without the need to sell option contracts.
For the past fifty years, the options market has relied on the Black-Scholes model. However, Bumper’s methodology for calculating the price for hedging risk presents a more efficient alternative. Although Bumper uses different inputs and a novel rebalancing mechanism, it surprisingly demonstrates correlation with Black-Scholes, even under the most volatile market conditions.
Bumper has already been deployed to the Ethereum mainnet and is currently accepting deposits in ETH and USDC. The protocol has plans to expand its support to include additional ERC-20 tokens and multi-chain compatibility in the near future.
Bumper is a pioneering DeFi risk market that offers protection against downside volatility of crypto assets. Users can buy protection by setting a price at which they wish to safeguard their crypto in case of a price fall, ensuring they don’t lose out if the market heads upwards. Alternatively, users can earn a yield by providing stablecoin liquidity to the protocol.
For more information on Bumper, including details on early user rewards and incentives for users of rival DeFi options protocols, please visit bumper.fi.