Wumbology
"I Wumbo. You Wumbo. He she we Wumbo." - Patrick, the Star of my life.
Last updated
"I Wumbo. You Wumbo. He she we Wumbo." - Patrick, the Star of my life.
Last updated
Make 60 second ultra-levered bets on token prices (more durations coming soon!).
Join the 1000x club with leverage in the thousands.
There are two types of bets:
WUMBO: Bet on volatility. Profit width +1000x leverage when the price moves out of your selected width.
MINI: Bet against volatility. Collect 300x-2000x leveraged fees on swaps in your selected width.
Wumbology isn't for the faint of heart. We go Wumbo or we go home.
The inner machinations are no enigma for the DeFi nerd.
We use Itos Automated Market Taking to create ultra-short-term options-like positions at the selected width. A Wumbo user essentially buys two synthetic options for 60 seconds, thus giving them extreme leverage. When either synthetic option is in-the-money, they rake it in.
Mini users are basically the same, but we use the two synthetic options to hedge an LP position. The tighter the width, the higher the hedge. By hedging the losses, we can lever up the LP 300 to +1000x times. This way we beat IL by only sitting in the market a short time and inflating our fee earnings like crazy.