Bumper is a DeFi protocol that protects the price of your crypto from volatility. Think about that for a moment. You set the price to protect and your asset will never fall below its floor, but if the market pumps, your asset rises too. Bumper calls it ‘God-Mode for Crypto’.
Forget a stop-loss, which just trades you out when the market tanks. Forget Options which are complex, clunky and have fixed expiry windows. That’s 50-year-old technology from yesteryear. Bumper is the DeFi future of tomorrow, where makers of liquidity are diametrically connected to takers of protection.
Follow this childlike explanation of how Bumper works…
You watch the price of your Bitcoin race up to $63k and it’s your opinion the price will retrace downwards. So you protect the price of your Bitcoin at $60k. Indeed the price of your Bitcoin does drop and as it passes through that $60k floor, you’re swapped into stablecoin (USDC). Now you don’t have any exposure to any further drop and can profit from it. However, should the price increase and push back through the $60k floor, Bumper swaps you back into Bitcoin. Now you benefit from any subsequent pump. It’s the best of both worlds. Simple and elegant. Except this childlike model doesn’t work, because of something called slippage. Every time you swap between USDC and Bitcoin, you don’t get exactly the desired price and you incur AMM fees and Gas costs. At its heart, Bumper’s intellectual property is its near-zero slippage engine.
Unsurprisingly, Bumper’s Flashpaper triggered fevered competition among VCs, vying for an allocation of BUMP tokens, with $32m declined. Added to that, where most crypto projects fail to deploy decent tech, this is where Bumper shines. Backed by Block8, who took a 10% equity stake in Bumper, they bring an army of dedicated devs, solution architects and software engineers. This is the Dev house that designed and delivered Havven, It’s the kind of powerhouse that results in Bumper’s elegant DApp for LPs to deposit USDC.
“This will run natively on a mobile, because at Bumper we want our users to be able to protect their assets on the go,” says CEO Jonathan DeCarteret.
Ready Player One
The price for bullet-proof protection is a nominal premium, as low as 3% p.a. Better still, if the price rises from a user’s protected floor, the premium drops to negligible levels. The elegance of Bumper is that it works just as well for large institutional players as it does for retail investors, meaning that corporations with fiduciary responsibilities to their shareholders can add crypto to their balance sheet, thereby providing a greater hedge against inflation than holding large cash reserves, whilst using Bumper to protect against the inherent market risks that this capital allocation brings with it.
Rules of the game
Bumper is able to facilitate this game-changing offering through an incredibly complex and intricate DeFi protocol, made accessible to even the most technologically uninitiated through an easy-to-use platform interface.
At its core, the Bumper protocol consists of two liquidity pools; one filled with the crypto assets (initially Eth, but later expanding to subsequent asset pools) of protection-takers, and the other filled with the USDC (later expanding to other stablecoins) of liquidity providers. Bumper runs an internal ledger to keep an immutable record of every platform participant’s activities, and if a taker’s asset falls below the floor they set and they decide to redeem it for stablecoin, they’re able to swap it for the exact price point, without exception, which they set when taking out their protection policy.
It’s a fundamental rule of the Bumper platform that as the number of people depositing into the liquidity pools and using the platform increases, the efficiency and effectiveness of the protocol increases too. In order to promote and facilitate growth in their stablecoin reserve pools, and to help bootstrap their groundbreaking protocol, Bumper are this week launching a liquidity provision program, to offer outperforming yields to their early supporters and liquidity providers.
Ready. Set. Stake…
Earlier this year, Bumper declined more than $32m in investment pledged by VCs, so that they could open up this private sale round of funding to their community. The launch of their Liquidity Provision program marks the start of that, and represents their commitment to rewarding and incentivising their community of backers and early adopters.
The launch also coincides fortuitously with the stage of the market cycle wherein a lot of investors find themselves sitting on substantial sums of stablecoin, after having taken profits from the bull run. Those investors fortunate enough to be facing a conundrum about where to park their profits need look no further than Bumper’s industry-leading APRs, which come with no risk whatsoever of impermanent loss.
At midday UTC on July 14 Bumper opens up its Liquidity Provision Program where early investors will be able to farm $BUMP and get special access to the Private Sale price starting at $0.60 (Public Sale $2.4).
The Program will run for 12 weeks, and users will be able to deposit at any time over that period in the Bumper dApp via their website. For each dollar deposited LPs will earn BUMP tokens, and the earlier they get in, the more BUMP they’ll earn and the higher the yield will be.
Early depositors of USDC into Bumper’s liquidity pool will be eligible to swap up to 20% of their deposits for BUMP tokens, at the private sale price of $0.60, and will receive the best possible yield of 315% APR. Depositors who choose not to buy into the private sale round will receive a yield of 100%+ APR on their USDC. Bumper Finance is offering their community over $22mil worth of BUMP tokens, which have been made available to be farmed and bought.
To find out more about Bumper Finance’s LP Program, and to deposit into their liquidity pool, visit https://www.bumper.fi/lpp