Bracket Labs: The Easiest Way To Trade Volatility in DeFi 📊
BracketX streamlines leveraged strategies, translating them into easily understandable payoff multiples that can be acquired with just a few clicks.
Today’s agenda 🗓
What is Bracket Labs?
Main Product: Passage
What’s next?
Funding
Final Notes
What is Bracket Labs?
Bracket Labs is the company behind BracketX, a DeFi specializing in range-bound products.
BracketX streamlines leveraged strategies, translating them into easily understandable payoff multiples that can be acquired with just a few clicks.
Main Product: Passage
At the forefront of the platform is Passage, the main application, which was launched in January on the Arbitrum blockchain, the preferred network for on-chain traders.
Essentially, Passage allows traders to trade volatility in any market condition.
Passage is designed for traders looking to take on short-term volatility positions without a directional bias.
It enables them to establish a range for asset prices (e.g., BTC $21,448-22,272) and choose either the "Stay In" or "Breakout" side of the trade.
"Stay In" traders accrue returns the longer the asset remains within the range, profiting if it stays there for longer than one day.
"Breakout" traders generate returns if the asset breaks out of the range, profiting if the breakout occurs in less than one day.
For a Stay In position, the payout rises linearly throughout the contract period, reaching a break-even point after 24 hours and peaking at 200% after 48 hours.
Conversely, the payout structure for a Breakout position starts at 200% and decreases linearly.
This process is conducted through Chainlink Automation, which uses a secure and cost-efficient off-chain monitoring system to detect the breakout and initiate the claim on-chain.
Payouts are made in kind with the asset used to purchase the Passage.
Passage allows 3 distinct strategies:
• Long/Short Volatility: Ideal for traders seeking gains from high/low volatility.
• Liquidity Provision: LPs generate yield from trading fees. (Refer to the image)
• Hedging: Perp traders can utilize Passage for position hedging.
What’s next?
Following the Passage launch, the Bracket Labs team has been analyzing market trends and exploring opportunities to enhance the product, with potential future implementations.
Let's see some examples 👇
• LSTs as collateral 👀
The Liquid Staking sector dominates DeFi, with stakers seeking platforms to deposit their LSTs and gain extra rewards.
Passage could provide a capital-efficient avenue for stakers to engage in trading strategies.
• RWA 🏢
The logic here is the same as LSTs. RWA holders could diversify their strategy by leveraging assets like treasury bonds or stocks for crypto volatility long/short positions.
This could be interesting since RWAs are usually way less volatile than crypto.
• Perpetual Options ✅
For those interested in financial markets, you probably noticed that Passage is similar to option straddles.
The Bracket team always looks closely at the options market for new ideas.
One that popped up recently was perpetual options.
Perpetual options are basically options contracts without expiration dates (like perpetual futures), allowing traders to maintain indefinite exposure.
This could be interesting for Bracket by allowing passage traders to keep positions open for as long as they wish.
Funding
In January, @Bracket_Labs_ closed a successful $2M round with prominent VCs and investors including: @BinanceLabs, @NGC_Ventures, @cypher_capital, @PHDCapital, @0xCapitalGroup, @FjLabs, @K300Ventures, @w3coins_io, @joshua_j_lim.
Final Notes 📝
Our followers know that we love DeFi. Bracket Labs is introducing interesting concepts for the industry.
In a volatile world like crypto, having a platform that allows you to trade it in such as simple way is awesome.
The project attracted good funding to drive further product development, community/marketing expansion, and partnership growth.
As a result, we anticipate a flurry of exciting developments from Bracket in the near future.
It's important to note that Bracket does NOT have a token for now.
Anything that you see related to it is a SCAM.
Do not interact!
Be careful with your allocations and understand the risks before investing!
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Best Regards,
Pedro Veiga - Co-Founder of MOIC Digital