Volatility, DEX

DeFi platform Brightpool introduces options trading that aims to offer the simplicity of regular trading.

Cryptocurrencies are financial assets famous for their high volatility. Though being the most “mature” cryptocurrency, Bitcoin’s (BTC) monthly volatility hovers between 2% and 3%, excluding the times when macroeconomics go crazy.

The volatile nature of cryptocurrencies is a double-edged sword. While a rapid rise brings a windfall to holders, it may also mean lost opportunities for those who missed the chance. Conversely, a sharp drop can spell heavy losses for some, but also unexpected gains for those positioned to profit from the downturn.

One way to navigate this volatility is through the use of options. Options allow investors to hedge against downside risk or speculate on price movements with limited capital. This potential was recognized by Coinbase, which placed a $2.9 billion bet on the future of crypto options by acquiring the industry’s largest player, Deribit.

Yet, just like most other features in the space, option trading has been adopted on a limited scale due to challenges such as complex terminology, not-so-user-friendly interfaces and low liquidity.

Invisible options in DeFi

Brightpool Finance is a decentralized finance (DeFi) platform that takes option trading to the next level by eliminating factors that hampered adoption. The project has built an invisible options engine that hides the complexity “under the hood,” allowing traders to utilize sophisticated financial instruments through a frictionless, intuitive experience that doesn’t even make users realize they are trading options.

Brightpool integrates options directly into everyday trading actions. Whether betting on a price increase or decrease, traders can freeze asset prices for a limited period and execute trades later if the price is favorable. “Imagine you can freeze the price of BTC today at $100,000 and use it next month,” the Brightpool team exemplified: “No matter if the price is $200,000 or $50,000, you would still be able to buy or sell at $100,000. Brightpool calls it ‘magic spell trading.’”

Volatility, DEX
How the price freezing feature works. Source: Brightpool

The platform also offers limit orders with yield, a rare feature in DEXs. Users can buy or sell an asset when it hits a predefined price level, and unlock yield in the process — a property unique to limit orders on Brightpool. According to the team, this means that users are making a yield profit while waiting the order to be filled.

AI powers the ecosystem

To deliver this experience, Brightpool leverages an AI-managed pricing engine based on the Black-Scholes model, the same Nobel Prize-winning formula used in traditional finance. This engine determines the value of each opportunity, whether it’s freezing a price or executing a limit order, by pricing the embedded option behind it.

Brightpool’s engine runs on BRIX, the platform’s native utility token. Users earn BRIX for placing orders and taking risks. These tokens can then be used to access key features of the platform, including freezing prices and paying fees.

BRIX is minted through a novel proof-of-risk consensus mechanism. Unlike proof-of-work or proof-of-stake, Brightpool’s system creates tokens based on the amount of risk users take on. The profits from this process are stored in the platform’s Treasury, meaning every BRIX token is backed by real activity.

On the institutional side, Brightpool offers BRI, its governance and B2B settlement token. While BRIX powers the retail experience, BRI is used by exchanges and partners to access Brightpool’s infrastructure. It also enables governance over key protocol decisions, creating a shared stake in the platform’s long-term evolution.

A step toward DeFi maturity

To showcase the price-freezing function, Brightpool is launching a unique dNFT collection that comes with frozen ETH prices. Each NFT acts as a "time travel ticket," giving holders the right to buy or sell at any historical ETH price, depending on the mint outcome. These NFTs are fully tradable and integrate directly with the Brightpool protocol. Interested users can join the whitelist to embark on a journey through ETH’s history while exploring the platform’s option trading feature.

Brightpool is currently in an invite-only phase, steadily onboarding early users. Once the protocol becomes public, the price engine will become active, price freezing and limit order features will be activated and prominent chains will be integrated into the ecosystem.

Brightpool aims to change how risk and opportunity are accessed in DeFi. By abstracting complexity and embedding powerful tools into seamless user experiences, the platform lays the groundwork for a more inclusive, intelligent and risk-optimized DeFi future.

Learn more about Brightpool Finance

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