Options protocol GammaSwap raises 342 ETH for their LBP

Options protocol GammaSwap, which offers on-chain perpetual options built on AMM liquidity, has announced it raised 342 ETH through its Liquidity Bootstrapping Pool (LBP) ahead of its token launch, according to the project’s post on X. An LBP is a token distribution mechanism, popularized in DeFi, that uses a dynamically adjusting price curve to help discover a market-clearing price and reduce the influence of large early buyers. GammaSwap positions itself as the first non-synthetic, on-chain perpetual options protocol, where positions are created by borrowing liquidity from Automated Market Makers instead of relying on traditional option order books or external price oracles. The protocol allows users to hedge impermanent loss on AMMs and to trade volatility on any token with an AMM pool, and its token is intended to scale liquidity provision and decentralize protocol governance. The LBP raise in ETH therefore functions both as a capital formation event for protocol liquidity and as a step toward broader decentralization of the project’s control and economics. The raise follows GammaSwap’s previously disclosed $1.7 million seed round, which was framed as funding to build out its perpetual options infrastructure and address inefficiencies in DeFi options and impermanent loss management. Within the broader DeFi derivatives landscape—where on-chain options remain a smaller segment compared with perpetual futures—the LBP and token launch are significant because they test market appetite for a novel options design that does not depend on synthetic assets or oracles and instead repurposes existing AMM liquidity.

✨ AI-generated background, compiled from web sources — not editorial content.

More coverage

• GammaSwap Docs: Introduction (docs.gammaswap.com)
• Blog - GammaSwap (gammaswap.com)
• GammaSwap (@GammaSwapLabs) on X (x.com)
• GammaSwap (@GammaSwapLabs) / Posts / X - Twitter (x.com)
• EIP-7251: Increase the MAX_EFFECTIVE_BALANCE (eips.ethereum.org)

Explore the topic

• Raises
• Options
• ETH