PancakeSwap and Stryke Revolutionize DeFi with Groundbreaking CLAMM Options Trading

PancakeSwap and Stryke collaborate to launch CLAMM Options Trading, introducing a breakthrough in DeFi by merging PancakeSwap's platform with Stryke's options protocol. The American-style options debut on Arbitrum, offering diverse expiry durations and markets such as ARB/USDC. This collaboration elevates fee-earning potential for liquidity providers and provides groundbreaking trading opportunities for users.

PancakeSwap and Stryke Revolutionize DeFi with Groundbreaking CLAMM Options Trading

April 8th, 2024, 9:00 AM UTC - PancakeSwap, the leading decentralized exchange (DEX), has partnered with Stryke (formerly Dopex) to introduce CLAMM (Concentrated Liquidity Automated Market Maker) Options Trading, a transformative innovation that redefines the DeFi landscape. This strategic collaboration merges PancakeSwap's robust platform with Stryke's cutting-edge options protocol, unlocking a world of new possibilities for traders and liquidity providers alike.

CLAMM Options: Unleashing Trading Versatility

Launching on the Arbitrum network, PancakeSwap's American-style CLAMM options provide unparalleled flexibility with diverse expiry durations (1, 2, 12, and 24-hour options) and a wide range of markets including ARB/USDC, ETH/USDC, and wBTC/USDC. These options, available in both Call and Put types, utilize strike prices based on v3 pool ticks. To maximize returns, users can exercise positions before closure to avoid in-the-money options expiring worthless. The platform also offers an auto-exercise feature, automating the profit realization process at expiry.

CLAMM Options: Transforming Liquidity Dynamics

Crafted by the Stryke team, the CLAMM options protocol introduces a groundbreaking dual liquidity provision system that empowers both 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 generate identical IL or token balance, ensuring no increased risk compared to conventional liquidity provision methods.

Minimal Risks, Maximum Potential

CLAMM options offer minimal risks to users, as liquidity may remain unutilized due to lower options buying demand. Additionally, liquidity is added to the pool in an inactive range, potentially resulting in no fee earnings.

A Paradigm Shift in DeFi

The PancakeSwap-Stryke collaboration is a significant leap forward in DeFi, providing users with diverse trading opportunities and elevating liquidity providers' fee-earning potential.

"PancakeSwap's partnership with Stryke to launch CLAMM Options Trading marks a transformative moment in DeFi innovation," said Chef Mochi, Head of PancakeSwap. "Together with Stryke's cutting-edge options protocol, we are reshaping the landscape of decentralized finance, a significant leap forward providing new possibilities for users and liquidity providers alike."

"We are thrilled to collaborate with PancakeSwap and leverage their deep liquidity in v3 pools," said TzTokChad, Founder of Stryke (formerly Dopex). "PancakeSwap's position as the leading BSC DEX opens up exciting new horizons for on-chain options trading for Stryke, expanding our products into new ecosystems."

About PancakeSwap

PancakeSwap is a leading multichain decentralized exchange 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. With over $719 billion in total trading volume and $2.33 billion in total liquidity locked, PancakeSwap is 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. Using option pools, Stryke enables anyone to earn a yield passively by optimizing option prices across all strike prices and expiries through its innovative and state-of-the-art option pricing model.

Media Contacts

PancakeSwap Team
Email: media@pancakeswap.finance

Stryke Team
Email: press@stryke.io