• Bumper, a DeFi platform, has released the results of their simulation report showing improved pricing efficiencies over traditional options desks.
• The report was the culmination of two years of research and development with CADLabs and the Swiss Centre for Cryptoeconomics.
• The findings challenge accepted norms of options pricing, potentially revolutionizing both crypto and traditional finance markets.
DeFi Platform Bumper Unveils Simulations Results
Bumper, a DeFi platform, today unveiled the findings of their comprehensive simulation report exhibiting new pricing efficiencies over traditional options desks ahead of an August 2023 protocol launch. This milestone in financial technology showcases an altogether new financial instrument that consistently outperforms existing options desks in generating both competitive premia and sustainable yields backtested against genuine cryptocurrency market data and prices.
Investment & Collaboration
The report is the culmination of two years of research and development powered by a $20m investment with collaboration from CADLabs and the Swiss Centre for Cryptoeconomics. Key highlights include that on average Bumper Takers paid 9.3% cheaper premia than buyers of traditional put options, while during the 2022 bear market there was a 46.2% yield improvement for Makers compared to options pricing without token incentives – whilst remaining solvent throughout simulated conditions. The results have remarkable correlation with Nobel Prize-winning Black-Scholes model inputs & methodology.
Revolutionising Financial Markets
The results demonstrate Bumper’s dynamic pricing based on forward volatility instead of implied volatility making it an attractive prospect for institutions, fund managers as well as retail crypto investors alike – challenging accepted norms in terms of options pricing with potential to revolutionise both crypto and traditional finance markets to penetrate the $13T derivatives market in future. CEO Jonathan DeCarteret expressed “By challenging accepted norms of options pricing, Bumper stands to revolutionise not just the crypto options market but also has potential to penetrate traditional finance” upon release of the report findings.
Black-Scholes Model Challenged
The simulation report marks significant validation for Bumper’s innovative approach alongside outlining expected outcomes from its protocol – potentially one most substantial challenges to Black-Scholes derived pricing in half a century according to experts within the industry.. Read more about this groundbreaking simulation here https://bumper.fi/report/ or find out more information regarding this revolutionary protocol at https://bumper.fi/.
Bumper is a DeFi platform aimed at attempting to reshape accepted norms when it comes to financial instruments offering improved efficiency & sustainability when it comes to trading cryptocurrency compared with existing methods such as those set out by Black-Scholes model which often involve fees or risk premiums which can be expensive if traded through more conventional channels such as brokers or banks making them unsuitable for smaller investors or those who are less experienced traders who may want access these tools but don’t have large amounts capital available upfront or suitable risk appetite levels required by these services