Umbrella Network Brings Wall Street Equivalent Options Pricing Data To The DeFi Community

Announcements, Blockchain, Innovation, News | October 19, 2021 By:

Umbrella Network, the decentralized Layer-2 oracle solution, has announced the launch of its arbitrage free pricing data for BTC and ETH options on both Ethereum and Binance Smart Chain.

At launch, arbitrage-free pricing will offer complete sets of options data for both BTC and ETH, containing the underlying crypto asset, expiry data, call price, put price, and implied volatility. Umbrella Network is currently including 660 new pairs covering 220 options instruments, for more profitable trading. DeFi applications will be able to access the data feeds via Umbrella Network’s Layer 2 Data (L2D) on both chains.

Currently, there is a lack of data and liquidity within the DeFi options space, specifically on strikes or maturities. This has led to gaps in values for option prices resulting in market participants trading on partial information.

Umbrella Network’s advanced arbitrage-free options pricing data brings a unique, first of its kind price feed to DeFi. It conveys a complete set of prices and a holistic view of the overall market bringing Wall Street quants to the DeFi ecosystem.

“DeFi doesn’t have a viable or developed options market,” said Sam Kim, Partner at Umbrella Network. “We felt that offering our advanced arbitrage-free options pricing data will be crucial for the DeFi market given the importance of options in traditional finance, not only for speculation but for risk management. As a decentralized oracle service, we work with data that is necessary to calculate true arbitrage-free option prices. So to us, spearheading this movement towards efficient option pricing is the next step to building a thriving derivatives market.”