Main Takeaways:
●PancakeSwap launches CLAMM Options Trading in collaboration with Stryke, introducing a groundbreaking approach to DeFi by merging PancakeSwap’s platform with Stryke’s innovative options protocol.
● The CLAMM options debut on the Arbitrum network, and offer diverse expiry durations and include markets such as ARB/USDC, ETH/USDC, and wBTC/USDC, providing diverse trading opportunities for users and elevating fee-earning potential for liquidity providers.
● This collaboration represents a significant leap forward in DeFi trading, promising to redefine the landscape by offering new possibilities and rewards to users and liquidity providers alike.
9:00AM UTC, April 8th, 2024 – PancakeSwap, the leading decentralized exchange, is thrilled to announce its collaboration with Stryke (formerly Dopex) to unveil CLAMM (concentrated liquidity automated market maker) Options Trading. This groundbreaking product revolutionizes DeFi by merging PancakeSwap’s robust platform with Stryke cutting-edge options protocol.
Overview of PancakeSwap’s CLAMM Options
Debuting on the Arbitrum Chain, PancakeSwap’s American-style CLAMM options offer flexibility with diverse expiry durations (1, 2, 12, and 24-hour durations) and include markets such as ARB/USDC, ETH/USDC, and wBTC/USDC. These options in Call and Put types utilize strike prices based on v3 pool ticks. Exercising positions before closure avoids in-the-money options expiring worthless, and users can choose to enable auto-exercise to skip further actions and realize profits automatically at expiry.
CLAMM Options: A Liquidity Game-Changer
Crafted by the Stryke team, the CLAMM options protocol introduces an efficient dual liquidity provision system for options traders and PancakeSwap v3 pools. Here’s how it operates:
● Liquidity Addition: Users adding liquidity to CLAMM options simultaneously contribute to designated PancakeSwap v3 (CLAMM) pools within their chosen price range.
● Options Trading: When an options trader initiates a position, liquidity is extracted from the v3 pool to facilitate options selling, with the user becoming an options seller and receiving a premium.
● Idle Liquidity Management: Unutilized liquidity resides in PancakeSwap v3 pools, potentially earning trading fees if the pool price remains within the liquidity range.
● Consistent Payoff: Selling options and providing liquidity in v3 pools mirror the same IL or token balance, ensuring users face no increased risk compared to conventional liquidity provision methods.
● Minimal Risks: Users face minimal risks, as liquidity might remain unutilized due to lower options buying demand, and liquidity is added to the pool in an inactive range, potentially not earning fees.
The collaboration signifies a significant stride forward, offering users diverse trading opportunities and elevating liquidity providers’ fee-earning potential.
“PancakeSwap’s collaboration with Stryke to launch CLAMM Options Trading marks an exciting moment for DeFi innovation. Together with Stryke’s cutting-edge options protocol, we’re reshaping the landscape of decentralized finance, a significant leap forward and providing new possibilities for users and liquidity providers alike.” – Chef Mochi, Head of PancakeSwap.
“Coinciding with the recent upgrade to the popular CLAMM product we are thrilled to work with PancakeSwap. PancakeSwap will be among the first DEXs we work with in terms of leveraging v3 liquidity beyond Uni v3. Being the leading BSC DEX means an exciting new chapter in on-chain options trading for Stryke and expanding our products to new ecosystems.
PancakeSwap fans can access Stryke via the navigation bar on the PancakeSwap UI.” – TzTokChad, Founder of Stryke (Formerly Dopex)
About PancakeSwap
PancakeSwap is a leading multichain decentralized exchange that operates on an automated market maker (AMM) model and available across 9 chains: BNB Chain, Ethereum, Aptos, Polygon zkEVM, zkSync Era, Arbitrum One, Linea, Base, and opBNB. Launched in 2020,
PancakeSwap is one of the most popular DEXs in the cryptocurrency industry due to its low transaction fees, high-speed trading, and user-friendly platform. PancakeSwap has over $719 billion in total trading volume and over $2.33 billion in total liquidity locked, making it the leading multichain DEX in the industry. For more information, visit https://pancakeswap.finance/.
For media inquiries, please contact
PancakeSwap Team
Email: [email protected]
About Stryke (formerly Dopex)
Stryke (formerly Dopex) is a decentralized options protocol that aims to maximize liquidity, minimize losses for option writers and maximize gains for option buyers — all in a passive manner. Stryke (formerly Dopex) uses option pools to allow anyone to earn a yield passively. Offering value to both option sellers and buyers by ensuring fair and optimized option prices across all strike prices and expiries. This is thanks to our own innovative and state-of-the-art option pricing model that replicates volatility smiles.
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