• Bumper, a DeFi platform, unveiled findings of their comprehensive simulation showing more efficient pricing than traditional options desks.
• The report revealed competitive premia and sustainable yields backtested against multi-year historical cryptocurrency market data and options prices.
• Results showed remarkable correlation with the Nobel Prize-winning Black-Scholes model which positions Bumper as an appealing prospect for institutions and fund managers.
Bumper Unveils Findings of Comprehensive Simulation
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 the protocol launch in August 2023. This 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.
Investment & Collaboration with CADLabs & Swiss Centre for Cryptoeconomics
The report is the culmination of a two-year exercise in Research and Development powered by a $20m investment and derived in collaboration with CADLabs and the Swiss Centre for Cryptoeconomics. On average, Bumper Takers paid 9.3% cheaper premia than buyers of traditional put options during the 2022 bear market, without resorting to token incentives. The protocol remained solvent throughout the simulated conditions and results revealed remarkable correlation with the Nobel Prize-winning Black-Scholes model.
Revolutionizing Options Pricing Landscape
On the release of the report, Bumper CEO Jonathan DeCarteret expressed “By challenging and potentially reshaping the accepted norms of options pricing, Bumper stands to revolutionise not just the crypto options market but also has potential to penetrate traditional finance and disrupt colossal $13T derivatives market in future”. The report underscores anticipated outcomes of Bumper’s dynamic pricing based on forward volatility rather than usual implied volatility which makes it immensely appealing prospect for institutions & fund managers along with retail crypto investors .
A Milestone Validation Of Innovative Approach
The economic simulation report released today marks most significant validation of Bumper’s innovative approach to date , signalling what could be one most substantial challenges to Black–Scholes derived pricing half century .
This report is pivotal in understanding & honing resilience of Bumper protocol across diverse market conditions . These results have been pivotal in understanding & honing resilience of Bumper protocol across diverse market conditions , positioning it as an immensely appealing prospect for institutions & fund managers .