DeFi Platform Bumper Unveils New Pricing Efficiencies, Outperforming Options Desks
• Bumper, a DeFi platform, released the findings of their comprehensive simulation which showed new pricing efficiencies over traditional options desks ahead of the protocol launch in August 2023.
• The simulation report revealed that on average, Bumper Takers paid 9.3% cheaper premia than buyers of traditional put options and during the 2022 bear market, Bumper’s simulation showed a yield improvement of 46.2% for Makers compared to options pricing.
• The report also showed a remarkable correlation with the Nobel Prize-winning Black-Scholes model and signal what could be one of the most substantial challenges to the Black-Scholes derived pricing in half a century.
DeFi Platform Bumper Unveils Pricing Simulations
Chainwire Marking a seismic shift in the digital asset landscape, DeFi platform Bumper today unveiled the findings of their comprehensive simulation, exhibiting new pricing efficiencies over traditional options desks ahead of their protocol launch in August 2023.
The report delineates a milestone in financial technology, showcasing an altogether new financial instrument that consistently outperforms existing options desks in generating both competitive premia and sustainable yields, backtested against genuine, multi-year historical cryptocurrency market data and options prices.
On average, Bumper Takers paid 9.3% cheaper premia than buyers of traditional put options. During the 2022 bear market, Bumper’s simulation showed a yield improvement of 46.2% for Makers compared to options pricing without resorting to token incentives.
The protocol remained solvent throughout simulated conditions and despite having different inputs and methodology; Bumper’s results reveal a remarkable correlation with the Nobel Prize-winning Black Scholes model.
On the release of this report;Bumper CEO Jonathan DeCarteret expressed “By challenging and potentially reshaping accepted norms of options pricing;Bumper stands to revolutionise not just crypto option markets but also has potential to penetrate traditional finance and disrupt colossal $13T derivatives market in future”.
The report underscores anticipated outcomes from dynamic pricing based on forward volatility rather than usual implied volatility;positioning Bumper as appealing prospect for institutions/fund managers & retail crypto investors.
Revolutionising Financial Markets
These results have been pivotal understanding & honing resilience offBumpertprotocol across diverse market conditions& marks significant validationofBumpers innovative approach .It signals what could be oneofmostsubstantialchallengetoBlack Scholes derivedpricinginhalfacentury.