BTCDeFi's new narrative, a peer-to-peer interoperable Optionsprotocol

Since its inception, BTC has always adhered to the spirit of Decentralization and peer-to-peer. In the existing BTC Decentralized Finance ecosystem, most protocols use cross-chain bridges to map BTC to EVM chains and then use Smart Contracts to build various BTC Decentralized Finance applications in the EVM pool. Bitlayer has achieved an on-chain financial infrastructure system with the same level of security and programmability as BTC's first layer through OP-DLC and BitVM bridge technology. The on-chain Options protocol Jasper Vault will create the first native layer2 BTC simplified Options on Bitlayer. This protocol allows users to obtain stable and high Options income as sellers, and also enjoy up to 300x leverage without liquidation risk as buyers in Options trading.

The Jasper Vault protocol supports Bitlayer users to directly pay Options premium with BTC, purchase BTC bullish Options with leverage as high as 300X, and ensure zero risk of being liquidated. The option seller does not need to transfer funds to any pool, but directly provides liquidity through self-custody abstract Wallet (ERC-4337) to earn super high returns on Options (option yield), truly achieving peer-to-peer trading with the buyer.

Five Core Highlights of Jasper Vault

• No custodial security guarantee: Use a non-custodial account to abstract Wallet, without the need to trust third-party platforms.

• Simplified Options Product: Dropped the Options trading threshold, allowing Newbie users to easily participate.

• High leverage without Get Liquidated: Supports up to 300 times Margin Trading, without the risk of Perptual Futures Get Liquidated.

• PAMM mode realizes peer-to-peer trading: Jasper's innovative active acquisition of Spot quotation mode avoids Liquidity risk and counterparty default risk.

• Stable Income: Options sellers can obtain stable and high income from market Fluctuation.

Security: Combining BitVM with ERC-4337 technology

For users, the security of funds is the cornerstone of all profits. Bitlayer has built a dual-channel bi-directional locked asset bridge through its innovative OP-DLC and BitVM bridge technology, inheriting the security of the BTC layer 1 while constructing a scalable and programmable on-chain financial infrastructure. Jasper Vault further enhances the security and privacy of user assets by adopting ERC-4337 (account abstraction) technology, allowing both buyers and sellers to transact through self-custodial Wallet, without the need to trust third parties. Additionally, through the Particle Network account abstraction Paymaster, users can enjoy various gas fee subsidies and discounts. In the future, Jasper Vault will also integrate with Particle Network's Universal Account, achieving a frictionless trading experience across the entire chain and advancing interoperability to the next stage.

Simplified Options trading, everyone can participate

Traditional Options, due to their complexity in the four-dimensional space of long/short, call/put, as well as combinations of exercise price and expiration date, are often not suitable for Newbie financial players. In order to achieve widespread application of Options in the crypto market, the Options products must be simplified. Jasper Vault has innovatively developed the 0DTE (same-day expiration) Options and simplified the Options strategies, creating the unique Degen Option product, allowing Newbies to easily participate. Jasper Vault Options have consistent exercise prices and market prices that are dynamically updated every second. As a result, users only need to choose bullish or bearish to easily participate in Options trading.

Users can use the same logic as spot trading for Options trading. If the trading judgment is correct, users can get leverage profits 300 times higher than spot trading. If the trading judgment is wrong, users will only lose a small amount of premium. You can use bullish Options to speculate on rebounds in the market, or use bearish Options to hedge spot holdings. In a market downturn, there is no need to worry about spot holdings loss. Simply buy bearish Options for 24 hours to ensure that BTC does not suffer any price loss within 24 hours. Therefore, Options are excellent Risk Management tools that can help users reduce risk and profit at low cost in a volatile market environment.

Zero Get Liquidated, up to 300x leverage

The issue of getting liquidated with high leverage has always been one of the core reasons why the industry is resistant to margin trading. The Jasper Vault team, with their expertise in options products and Wall Street experience, has created the industry's first simple margin trading product that doesn't get liquidated, on-chain options: open positions with a minimum duration of 2 hours and leverage of over 300x. Users can seize short-term investment opportunities in rapidly changing markets. The user trading experience and interface are identical to mainstream perpetual futures, with the only difference being that leverage will not cause contract liquidation issues before options expire. With 2-hour options and 300x leverage, there is no need to worry about forced position closure due to market fluctuations.

Original PAMM Model

Jasper Vault adopts the innovative PAMM (Proactive AMM) mode, using the BTC Oracle Machine to actively obtain the aggregated Spot quotations of BTC for Options Settlement prices. The pricing of Options based on implied Volatility can be directly linked to the abstract Wallet of the seller's account, avoiding the quotation risk brought by the depletion of Liquidity or the withdrawal of the pool under the traditional AMM mode. Based on the abstract Wallet of the account, the Options seller does not need to transfer funds to any pool. By directly providing Liquidity through the self-managed account abstract Wallet (ERC-4337), the seller can earn super high returns on Options, achieving true peer-to-peer trading. At the same time, Jasper Vault requires the Options seller to have sufficient Margin, while also ensuring the rights of the buyer.

BitcoinDecentralized Finance收益

According to DeribitOptions data, BTCOptions can have a historical return rate of 30%-80%, and the returns for being a provider of BTCOptionsLiquidity far exceed other Decentralized Finance protocols. The source of Options returns comes from the volatility of BTC itself and the different preferences of buyers and sellers towards volatility. As long as the volatility of BTC exists in the long term, the high returns of Options will also exist in the long term, which is fundamentally different from the sources of returns for other Decentralized Finance protocols such as lending and staking. The threshold for traditional Options market making is very high, usually requiring 3-6 full-time Options traders to manage the Greeks positions of Options every 8 hours, including Delta, Gamma, Vega, Theta, and Rho, as well as the counterparty default risk specific to Options. Jasper Vault uses the liquidation capability of collateral and the interoperability of Wallet to directly lock BTC as collateral in Smart Contracts after the Options buyer pays the premium, thereby fundamentally eliminating the counterparty risk issue and significantly reducing the cost and threshold for Options selling. For the first time, ordinary users can obtain high Options returns (option yield) on BTC through the Jasper Vault protocol without worrying about Options risk management.

Product iteration and future planning

Jasper Vault is committed to providing users with risk-free high-leverage Options trading, and the team will continue to iterate the product, add more Options gameplay and features, and comprehensively enhance users' Decentralized Finance experience. The platform is conducting a Genesis Airdrop, free trading, commission rebates, and other activities, sharing platform profits with the community, rewarding loyal users, and enabling more Newbie players to quickly get started and earn profits. Through long-term strategic cooperation with BitLayer, Jasper Vault will leverage BitLayer and its strong technical support to provide a fast and secure trading environment for BTC holders. Together, they will promote the further development of the BTC Decentralized Finance ecosystem and bring more innovative and robust Decentralization financial solutions to BTC users.