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An Introduction to Pump Markets

Pump Markets is the ultimate pre-market protocol.

TL;DR

  • We’re excited to announce that Pump Markets is live on Blast Mainnet

  • Buyers and sellers receive up to 15% yield on their collateral deposited into orders

  • Sellers have increased flexibility to reduce collateral requirements by up to 50%

  • Our innovative Proof-of-Collateral NFTs unlock idle liquidity for buyers.


Introduction

2024 is the year of points, airdrops and pre-market tokens. We’re either farming, selling or thinking about building reward systems. The meta will evolve but it’s here to stay. In any case, we’re here for the long-haul.

Pump Markets is the ultimate pre-market token protocol. A few months ago, we started building Pump Markets to solve capital inefficiency and liquidity issues. On our platform, you can trade your points and airdrop allocation before the TGE (Token Generation Event). After extensive analysis and refinement on testnet, our marketplace is live on Blast Mainnet

Why Build on Blast? 

One of the biggest problems with current OTC points marketplaces is capital inefficiency

In this existing model, both buyers and sellers are at risk of locking capital in escrow for a long time if a project does not launch its token quickly. Essentially, they lose time value on their money, when it could be spent earning yield. In addition, both parties have to deposit 100% of the order collateral, resulting in idle capital being locked in smart contracts.

Pump Markets resolves this. By building on Blast, our buyers and sellers will earn yield even while their capital is in escrow. Blast is the first L2 that incorporates a native yield design, enabling automatic compounding. The default yield on other L2s is 0%. In comparison, on Blast, users receive 4% for ETH and ~15% for stablecoin deposits. Their native yield, which comes from ETH staking and RWA protocols, is automatically passed on to Blast users. 

Pump Markets key advantages over other OTC points marketplaces.

Maximize yield on Pump Markets

On Pump Markets, early mainnet users will earn Blast Gold, Blast Points AND Pump Points. 

In the near future, we will also be partnering with other leading projects to implement optional collateral staking on additional yield-maximizing vault strategies. 

The Pump Markets mechanism will enable complex yield-generating strategies

Unlocking buyer liquidity with Proof-of-Collateral NFTs

On existing OTC points marketplaces, sellers can default after settlement. However, buyers cannot cancel an order. The buyer is relatively powerless in this situation; It’s time we changed this by giving additional flexibility to buyers. 

On Pump Markets, we enable buyers to unlock liquidity via an innovative NFT-driven mechanism. Our Proof-of-Collateral NFT allows buyers to trade out of their positions

Buyers receive a Proof-of-Collateral NFT when they create an offer-to-buy or fill a buy order. As a buyer, you will be able to:

  • Sell your NFT on NFT marketplaces or;

  • Borrow against your NFT on an NFTFi platform to unlock liquidity.

At Settlement, burning the NFT will allow redemption of the underlying tokens or collateral.

Pump Markets offers key benefits over the current leading OTC marketplace (Whales Market)

Dynamic collateral

On Pump Markets, we enable sellers to deposit reduced collateral: Sellers can choose to deposit either 50% or 100% collateral. This provides greater flexibility to the seller, with the option to either unlock 50% liquidity immediately or earn additional Blast Points when proceeding via the default 100% deposit option. 

If a seller opts for reduced collateral, the Blast Points accumulated in their deposited yield are transferred to the Buyer to compensate for the increased risk being taken in this position. It’s a trade-off between immediate liquidity and longer-term rewards, with the seller having the option to select the approach that suits them best for each order.

The future of Pump Markets

We also understand the inconvenience faced by traders. Pump Markets is the starting point for crypto’s pre-market. Trade, learn and analyse with us. We help you get in early.

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