September saw the highly anticipated Ethereum Network merge successfully completed. The transition from Proof of Work (PoW) to Proof of Stake (PoS) went smoothly, with the new consensus mechanism performing well in the first week.
Like most events though, once the excitement subsided the ETH price remained relatively rangebound. Nonetheless, the live software upgrade of the “world computer” in production is a proud moment for the engineers involved in its planning and execution.
Broader macroeconomic headwinds saw the crypto market activity staying well off the highs. The market, however, did show some resilience and correlation with equity markets came off its recent highs. Despite equity weakness and continued volatility, there is more activity in pockets of the crypto ecosystem and institutional players continue to enter the market.
One such bright spot is the burgeoning crypto options market.
Spot the trend
With DeFi tokenomics going through natural stages of evolution, options trading has emerged as a useful source of real yield for investors.
Unlike the automated market making of stablecoins though, this source of yield is not naturally market neutral. This means that having a robust pricing and risk management system in place is pivotal to optimising options strategies and capturing the yield in a risk-controlled fashion.
We have been building out volatility surface analytics and just released our Multi-Leg Options Pricer and Scenario Analysis toolkit.
- Exchange traded and OTC options on BTC and ETH.
- Ability to price using custom expiry dates and strikes.
- Setting premium and notional currencies to view appropriately adjusted Greeks.
- Creating PnL and risk scenarios across a range of spot and volatility levels.
All of this is seamlessly integrated into Haruko’s portfolio and risk management framework which brings CeFi and DeFi risk together, forming one unified view.
Volatility surface models, marking tools, as well as options pricing across vanillas and exotics remain key areas of development for Haruko. Stay tuned for exciting product enhancements in this space.
For us, improvement never stops. We continuously enhance the Haruko platform based on crypto market trends and, most importantly, what our clients tell us they need to successfully manage their risk across their digital asset portfolios.
We've added several new exchanges and protocols over the past month to reflect the ever-expanding crypto ecosystem:
- Ethereum PoS
- GMX Staking
- Maple Finance
- Vector Finance
- Balancer on Polygon
Haruko selected for FinTech 5.0
We're delighted to have been chosen for this year's cohort of Tech Nation's FinTech 5.0 programme!
FinTech 5.0 is a government-backed tailor-made programme which takes on a select number of early stage companies at the cutting edge of fintech innovation each year. Alumni include Wise, Monzo and Blockchain.com.
We look forward to being part of this exciting programme and learn from some of these top unicorns.