OrBit Markets Unveils Impermanent Loss Protection for DeFi Market Participants
SINGAPORE–(BUSINESS WIRE)–OrBit Markets, the leading provider of institutional liquidity in digital asset options and structured products, has announced the launch of an impermanent loss (IL) protection product. The options-based product offers complete and exact protection against volatility exposure associated with providing liquidity on certain decentralized exchanges, a risk known to DeFi users as “impermanent loss”.
Leveraging its deep financial engineering expertise and advanced proprietary systems, OrBit is able to offer this simple, yet comprehensive and intuitive solution to protect against IL. A user simply pays a flat rate premium up front and will be fully reimbursed for actual losses at expiry, thus the IL risks are fully transferred from the user to OrBit.
OrBit has already executed several trades in this Bitcoin and Ethereum-linked product, and has now expanded the range of underlying tokens to include Solana, Avalanche, Polygon, and Aave.
Commenting on the benefits of the product, Evgeny Gokhberg, Managing Partner at Re7 Capital, said, “Re7 is a fund that provides liquidity to DeFi to shape the financial ecosystem of tomorrow. Under this strategy, covering impermanent losses from automated market makers (AMMs) is a significant risk management challenge. With its IL Protection Cover, OrBit offers a unique and innovative product that is an excellent addition to our investment strategy. We look forward to continuing to use OrBit as a counterparty for more flexible and tailored hedging products. »
“Managing the impermanent loss exposure inherent in AMM protocols is a critical challenge for many of our portfolio companies as well as our own liquid trading strategy. When we first heard about the solution of OrBit to this problem, we immediately saw the huge potential and added value of their product for the DeFi ecosystem, and this was a key element in our decision to participate in their first fundraising. team in traditional derivatives trading ideally positions them to provide such hedging solutions to the DeFi world,” added Balder Bomans, Chief Investment Officer at Maven 11 Capital.
About OrBit Markets:
OrBit Markets is an institutional liquidity provider of exotic options and digital asset structured products. Founded by a team of former trading and IT executives, and backed by Matrixport and Brevan Howard Digital, OrBit brings expert options know-how to the crypto derivatives market. Singapore-based OrBit serves CeFi, DeFi and TradFi institutions looking for more sophisticated investment and hedging solutions in digital assets. For more information, visit www.orbitmarkets.ioor email [email protected]
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