Bumper, a decentralized finance (DeFi) protocol, has launched its crypto options killer, which promises to improve upon traditional Black-Scholes option desks by an average of 30%. The protocol is the result of a three-year research and development program, backed by $20 million in early funding, and collaboration with the Swiss Center for Cryptoeconomics.The protocol undercuts traditional options desks by one-third, while paying between 3-18% APR to Liquidity Providers (LPs) that supply USDC to the protocol. Early adopters of the protocol will also share in $250,000 worth of incentives, by either protecting their ETH or earning on their USDC.Bumper’s Co-founder and CEO, Jonathan DeCarteret, says “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 realise returns ranging between 3-18% APR on average without the need to sell option contracts.Bumper has been deployed to the Ethereum mainnet, 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.Bumper is a DeFi risk market that provides protection from downside volatility of crypto assets. Users buying protection set a price at which they wish to protect their crypto should the price fall, but they don’t lose out if the market heads upwards. Conversely, other users earn a yield by providing stablecoin liquidity to the protocol. For more information, visit Bumper’s website, follow Bumper’s Twitter, and join the Bumper Discord.
This News Article was automatically generated by Bob the Bot (AI)
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | Europe |
| Countries | 🇬🇧 🇨🇭 |
| Sentiment | positive |
| Relevance Score | 10 |
| People | Jonathan DeCarteret, Jason Suttie |
| Companies | Digital Mob, Filecoin, Deribit, Barnbridge, Swiss Center for Cryptoeconomics, Gnosis |
| Currencies | BarnBridge, Filecoin, USD Coin, Ethereum, Bitcoin |
| Securities | None |
