Bumper’s $20m bid to undercut Deribit’s options launches

London, United Kingdom, Sep. 7, 2023, Chainwire

Bumper, a decentralized finance (defi) protocol, today launched its crypto options alternative. The protocol’s equation marks a significant improvement over traditional Black-Scholes option desks, beating the market leader, Deribit, by an average of 30%. This innovation has the potential to disrupt the $13 trillion market.

Bumper’s solution is the culmination of a three-year research and development program, backed by $20m in early funding, and collaboration with the Swiss Center for Cryptoeconomics, known for work on Synthetix, and coded by renowned developers Digital Mob, who previously worked on protocols such as Barnbridge, Gnosis, and Filecoin.

The result is a protocol that undercuts traditional options desks by one-third, while paying between 3-18% APR to liquidity providers (LPs) that supply USDC.

Early adopters will also share in $250,000 worth of incentives, by either protecting their Ethereum (ETH) or earning on their USDC.

Bumper’s co-founder and CEO, Jonathan DeCarteret, said:

“Bumper removes the downside volatility of a user’s crypto tokens, paving the way for them to take leveraged positions with zero-liquidation risk. That in itself is a major breakthrough, but when you consider it’s on average 30% cheaper than the market leader, the value proposition becomes crystal clear.”

The protocol charges a premium which is calculated incrementally during the term, based on a combination of market conditions, protocol rebalancing and proximity to the user’s floor. This generates real yields for liquidity providers who realize returns ranging between 3-18% APR on average without the need to sell option contracts.

Until now, the methodology for calculating the price for hedging risk relied on the fifty-year-old Black-Scholes model, which has fueled the $13 trillion options market.

DeCarteret added:

“Fifty years is a long time in tech and although Bumper uses completely different inputs and a novel rebalancing mechanism, it is surprisingly correlated with Black-Scholes, but more efficient, even under the most volatile of market conditions.”

Bumper has been deployed on Ethereum, and is currently accepting deposits in ETH and USDC, with additional ERC-20 tokens and multi-chain support slated to be added to the protocol in rapid succession.

To learn more about Bumper, including rewards and incentives for users of rival DeFi protocols, visit bumper.fi.

About Bumper

Bumper is a defi risk market that shields you from crypto asset price drops. If you want to safeguard your crypto at a specific price, you can do so without missing out on potential gains if the market rises. Meanwhile, other users can earn rewards by supplying stablecoin liquidity to the platform.

For more information, visit Bumper’s website, follow Bumper’s Twitter, and join the Bumper Discord.

Contact

CMO
Jason Suttie
Bumper
[email protected]