Bumper’s Breakthrough DeFi Protocol Set to Reshape Options Pricing

(Press release – London, UK, May 31, 2023)

Marking a seismic shift in the digital asset landscape, the DeFi platform Bumper Today, it unveiled comprehensive simulation results, demonstrating new pricing efficiencies over traditional options desks ahead of the protocol’s launch in August 2023.

this a report Charts a financial technology milestone, showcasing a brand new financial instrument that consistently outperforms existing options desks in generating competitive premiums and sustainable returns, and testing them against original multi-year historical cryptocurrency market data and options prices.

The report is the culmination of a two-year research and development exercise supported by a $20 million investment and was produced in collaboration with CADLabs and the Swiss Center for the Crypto Economy.

Key points from the simulation report:

• On average, Bumper Takers paid a 9.3% cheaper premium than traditional put option buyers.
• During the 2022 bear market, the Bumper simulation showed a 46.2% improvement in yield for manufacturers compared to option pricing without resorting to token incentives.
• The protocol remained solvent throughout the simulated conditions.
• Despite different inputs and methodologies, Bumper’s results reveal a remarkable relationship with the Nobel Prize-winning Black-Scholes model.

These findings have been pivotal in understanding and refining the resilience of the Bumper protocol across diverse market conditions.

In releasing the report, Bumper CEO Jonathan DeCarteret expressed, “By challenging the accepted rules of option pricing and potentially reshaping it, Bumper not only stands in the way of the crypto options market, but also has the potential to penetrate traditional finance and disrupt the massive $13 trillion derivatives market.” dollars in the future.

The report emphasizes the expected results of Bumper’s dynamic pricing, based on future volatility rather than the usual implied volatility.

The results of the simulation report position Bumper as a very attractive prospect for institutions and fund managers, as well as retail crypto investors.

The Economic Simulation Report released today represents the most significant validation of Bumper’s innovative approach to date and points to what may be one of the biggest challenges to Black-Scholes-derived pricing in half a century.

Read the Bumper simulation report hereFor more information about the protocol, visit https://bumper.fi.

About bumper

Bumper is a DeFi risk marketplace that provides protection against negative fluctuations in the price of crypto assets. Users who buy protection (Takers) set the price at which they are willing to protect the cryptocurrency in case the price goes down, but not lose if the market goes up. On the contrary, other users (makers) earn revenue by providing stable coin liquidity to the protocol.