PancakeSwap Revamps DeFi with CLAMM Options Trading, Powered by Stryke

PancakeSwap and Stryke have joined forces to introduce CLAMM Options Trading, a groundbreaking innovation in DeFi that combines PancakeSwap's platform with Stryke's options protocol. Launching on Arbitrum with diverse expiry durations and markets (ARB/USDC, ETH/USDC, wBTC/USDC), CLAMM options empower traders with flexible options and provide liquidity providers with enhanced earning potential. This collaboration marks a significant milestone, reshaping the DeFi landscape and unlocking new opportunities for both users and liquidity providers.

PancakeSwap Revamps DeFi with CLAMM Options Trading, Powered by Stryke

9:00 AM UTC, April 8th, 2024

PancakeSwap, the decentralized exchange (DEX) behemoth, has unveiled a groundbreaking innovation in collaboration with Stryke (formerly Dopex), introducing CLAMM (Concentrated Liquidity Automated Market Maker) Options Trading. This revolutionary product merges PancakeSwap's robust platform with Stryke's cutting-edge options protocol, reshaping the DeFi landscape.

Overview of PancakeSwap's CLAMM Options

Making their debut on the Arbitrum network, PancakeSwap's American-style CLAMM options offer unparalleled flexibility with diverse expiry durations (1, 2, 12, and 24-hour durations) and diverse markets, including ARB/USDC, ETH/USDC, and wBTC/USDC. These options in Call and Put types utilize strike prices based on v3 pool ticks. Exercise positions before closure to avoid in-the-money options expiring worthless. Users can also choose auto-exercise to automate profit realization at expiration.

CLAMM Options: A Game-Changer for Liquidity

Crafted by the Stryke team, the CLAMM options protocol introduces an innovative dual liquidity provision system tailored for options traders and PancakeSwap v3 pools. Here's how it operates:

• Liquidity Addition: Users contribute liquidity to CLAMM options while simultaneously adding 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. The user becomes an options seller, 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 impermanent loss (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.

This collaboration marks a significant step forward for DeFi, providing users with 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," said Chef Mochi, Head of PancakeSwap. "Together with Stryke's cutting-edge options protocol, we're reshaping the landscape of decentralized finance, providing new possibilities for users and liquidity providers alike."

"Coinciding with the recent upgrade to the popular CLAMM product, we are thrilled to work with PancakeSwap," said TzTokChad, Founder of Stryke (formerly Dopex). "PancakeSwap is among the first DEXs we work with in terms of leveraging v3 liquidity beyond Uniswap 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."

About PancakeSwap

PancakeSwap is a leading multichain DEX that operates on an automated market maker (AMM) model and is 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.

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 utilizes option pools to allow anyone to earn a yield passively. It offers value to both option sellers and buyers by ensuring fair and optimized option prices across all strike prices and expiries, thanks to its innovative option pricing model that replicates volatility smiles.