DEFI Platform Brightpool presents the trading of options which aims to offer the simplicity of regular trading.
Cryptocurrencies are financial assets famous for their great volatility. Although it is the most “mature” cryptocurrency, the monthly volatility of Bitcoin (BTC) oscillates between 2% and 3%, excluding moments when macroeconomics becomes crazy.
The volatile nature of cryptocurrencies is a double-edged sword. Although a quick increase brings a windfall to holders, this can also mean lost opportunities for those who have missed the opportunity. Conversely, a clear drop can spell heavy losses for some, but also unexpected gains for those positioned to take advantage of the slowdown.
One way to navigate this volatility is to use the options. The options allow investors to go to bed against the risk of decline or speculate on price movements with limited capital. This potential was recognized by Coinbase, which placed a 3.9 billion dollars bet on the future of crypto options by acquiring the largest actor in the industry, deribit.
However, just like most of the other features of space, the trading of options has been adopted on a limited scale due to challenges such as complex terminology, not so friendly interfaces and low liquidity.
Invisible options in DEFI
Brightpool Finance is a decentralized financial platform (DEFI) which puts options to the higher level by eliminating the factors that have hindered adoption. The project has built an engine of invisible options which hides the complexity “under the hood”, allowing traders to use sophisticated financial instruments thanks to an intuitive experience without friction which does not even make users that they are trading options.
Brightpool integrates options directly into daily trading actions. That betting on an increase or decrease in prices can freeze asset prices for a limited period and execute transactions later if the price is favorable. “Imagine that you can freeze the price of the BTC today at $ 100,000 and use it next month”, the Brightpool team illustrated: “No matter if the price is $ 200,000 or $ 50,000, you could always buy or sell at $ 100,000. Brightpool calls him “Magic Spell Trading”. ” ».
The platform also offers limit commands with performance, a rare characteristic in Dex. Users can buy or sell an asset when it reaches a predefined price level and unlock the performance in the process – a single property to limit orders on Brightpool. According to the team, this means that users make a return while waiting for the order to fill.
Ai fueling the ecosystem
To offer this experience, Brightpool operates a pricing engine managed by AI-AI based on the Black-Scholes model, the same Nobel Prize winner formula used in traditional finance. This engine determines the value of each opportunity, whether to freeze a price or execute a limit command, trying the integrated option behind it.
1. Trading powered by AI – The innovative approach makes it possible to limit orders with rewards calculated by AI and price freezing for DEX tokens.
2. Reward each order – Unlike traditional platforms that charge costs for transactions, rewards users for each negotiation order placed. https://t.co/kqycyhcis
– Brightpool.finance (@brightpoolx) May 15, 2024
The Brightpool engine operates on Brix, the native utility token of the platform. Users earn Brix to place orders and take risks. These tokens can then be used to access the main features of the platform, including price freezing and payment fees.
Brix is struck by a new mechanism of consensus of proof of risk. Unlike proof of work or proof of bet, the Brightpool system creates tokens according to the amount of risks that users have. The benefits of this process are stored in the treasure of the platform, which means that each brix token is supported by a real activity.
On the institutional side, Brightpool offers BRI, its governance and the B2B colonization token. While Brix feeds the retail sales experience, BRI is used by exchanges and partners to access Brightpool’s infrastructure. It also allows governance on key protocol decisions, creating shared participation in the long-term evolution of the platform.
A step towards maturity defined
To present the price freezing function, Brightpool launches a unique DNFT collection that comes with Frozen ETH prices. Each NFT acts as a “time travel ticket”, giving holders the right to buy or sell at all costs of historic ETH, depending on the result of mint. These NFTs are fully negotiable and integrate directly into the Brightpool protocol. Interested users can join the white list to embark on a trip through ETH history while exploring the trading function of the platform options.
Brightpool is currently in a only invited phase, to regularly integrate the first users. Once the protocol has become public, the price engine will become active, the price freezing and the control features are activated and prominent channels will be integrated into the ecosystem.
Brightpool aims to change the way the risk and opportunities are accessible in DEFI. In abstraction of complexity and by integrating powerful tools into transparent user experiences, the platform set the basics of a more inclusive, intelligent and optimized DEFI future.
Learn more about Brightpool finance
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