Bumper is a DeFi protocol which protects your crypto from price drops and market crashes whilst simultaneously making sure you don't lose out in case the price pumps.
Users of protection set a floor price for their ‘unstable’ asset (eg. ETH), and if the price crashes, their asset will never fall below that floor price. Importantly, if the price rises, they retain their native asset as the value increases, thus removing downside risk but still capturing the upside potential.
The Bumper protocol aggregates sellers of risk (Takers) and buyers of risk (Makers) into separate but decentralised, non-custodial pools. The protocol is constantly monitoring a variety of ratios governing the balance of those pools, and then uses incentivised mechanisms to retain that balance to provide the required price protection.
Put simply, Bumper can provide protection for the price of your crypto assets. This means that the volatility that we have all become aware of in the crypto market can be mitigated in exchange for a fee. As a result, you can invest into a cryptocurrency, 'Bumper' a large portion of it and wait until the value of that asset rises.
Then, at what ever point you want to sell your assets, you'll never lose less than your set price floor. Considering this, you could wait until the asset price rises and then Bumper that price, effectively removing any chance that your whole crypto portfolio will suffer from heavy losses.
On the other side, Makers have the opportunity to earn yield, not only from premiums which are collected by the Bumper protocol, but also from the automated Yield farming capabilities which the system makes possible. All of these benefits mean that using Bumper can make crypto a sustainable long-term investment choice.
A Stop Loss places a sell order to an exchanges order book when the threshold is triggered, converting your crypto asset to stablecoins or fiat (assuming the order is filled, which it isn’t guaranteed to be). But if the price rebounds, you end up missing out on upside gains.
Bumper preserves upside gains whilst protecting your wallets value from drops without transferring your tokens to an exchange. Your token isn’t sold when the floor is crossed, unlike when using a Stop Loss.
Bumper’s price protection is a novel alternative to the Put Option with significant benefits for both sides of the market.
You can buy a Put option without having to own an tokens. It’s essentially a gamble based on price movements with a fixed premium paid in advance. You either win, and thus can exercise your option (or just take profit), or you lose and are returned nothing.
Bumper protects tokens that you already own, and it’s premiums are calculated dynamically and applied incrementally, based on actual market volatility. When your position is closed you either claim stablecoins to the value of your floor, or you retrieve your original token (minus the premium).
Unlike a Put option, Bumper returns a composable ‘Bumpered asset’ to protection taker. It also allows protection terms to be renewed (extended) if required.
On the other side of the market, yield seekers generate income over time without the need to continually price, write and locate buyer for Put contracts. Bumper’s pooled architecture facilitates earning from multiple different positions even while reducing exposure to losses from individual contracts.
There are no KYC (Know Your Customer) or AML (Anti-Money Laundering) requirements, and we do not require you to register to use Bumper. Simply connect your compatible wallet, and you can use the protocol.
Each jurisdiction has it's own rules relating to tax on crypto gains, and we recommend speaking to a financial advisor in your domiciled country.
The BUMP Token address is: 0x785c34312dfA6B74F6f1829f79ADe39042222168
Ethereum ERC-20
You can find the repository here: https://github.com/Bumper-DAO/
A taker is a user who wishes to protect the value of their crypto assets by purchasing protection.
A maker is a user who provides liquidity into the protocol by depositing Stablecoins into Bumper.
Yes, and the protocol seeks to minimise fees to be as low as possible. The fees levied on Takers are a function of market risk; so as the market conditions degrade (i.e. with increased volatility or down-side risk markers), then the premium (fee) will adjust accordingly. This ensures that the fees only accumulate for the risk that the protected asset presents, meaning that they can be as low as possible.
The beauty in Bumper with this approach is that it doesn't have any long term unsustainable incentives that we find in other protocols. The incentives balance in real time based on the internal state of the protocol and a measure of the external prices of the protected assets, including the fees for Takers and yields for Makers.
No, the clever thing about the protocol is there's no real need to do lots of transactions. Bumper works like an aggregated ledger, monitoring and maintaining the relevant ratios that keep the protocol stable, it limits that transaction security risk and reduces things like slippage down to an irrelevant problem.
Currently, our native BUMP token is an ERC-20 token on the Ethereum network. In the future, we are looking at possibilities in expanding to other networks to reach more users in the crypto space.
We have conducted audits on our smart contracts at each major release stage to ensure safety. You can read the audit reports here.
The protocol is extremely efficient and robust and more than capable of dealing with BlackSwan events.
Drops in price are a two-part problem. Firstly, the actual level of drop and secondly, the time it takes to drop and/or recover. The worst-case scenario is a big and fast drop with an elongated flatline. Bumper is well-equipped to handle those kinds of drops.
So, yes, Bumper can be tuned to in fact withstand any kind of market drop, and has undergone in-depth modelling of many different scenarios to ensure that the protocol is as robust and cost-effective as possible.
There is only one theoretical kind of market drop that Bumper cannot withstand, and that is if the price of ETH goes to 0 instantaneously and stays there for an infinite amount of time. So as long as that doesn't occur, then there are a set of parameters under which the protocol works.
You’ll need to read the Litepaper and/or Whitepaper to fully understand the mechanics of how Bumper deals with flash crashes, but the protocol is extremely efficient and robust and more than capable of dealing with BlackSwan events and the kind of drops recently witnessed.
250m fixed supply (subject to community permissions minting should future Gov deem necessary).
The BUMP token is an integral part of the Bumper ecosystem, and along with the near-zero slippage engine, reserve rebalancing system, and multiple layers of redundancy, BUMP tokens further assist in maintaining the resiliency of the protocol.
The token is woven into every facet of the platform and is the first entry point to the Bumper ecosystem — since both price protection “takers” and liquidity providing “makers” need to deposit BUMP tokens to begin interacting with the protocol.
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You can purchase BUMP on Uniswap at present. It is our intention that Bumper will be listed on a range of exchanges, both centralised and decentralised.
To add the BUMP token to your Metamask wallet or to other web3 wallets manually, please follow the instructions below:
METHOD 1. Use the widget to add BUMP tokens to Metamask
1. Open MetaMask on your browser and select the account which holds your BUMP tokens.
2. Go to the widget here: https://bit.ly/3yZFDrw
3. Click on “Add to Metamask”.
4. In the MetaMask Notification, click “Add Token”.
5. You can now view BUMP tokens in MetaMask.
METHOD 2. Add BUMP tokens manually to Metamask
Follow the instructions below to add the BUMP token manually to Metamask
1. Open Metamask
2. Click on “Import Tokens”
3. Click on the “Custom Token” tab
4. Enter the BUMP token contract address:
Token Contract Address:0x785c34312dfA6B74F6f1829f79ADe39042222168
Token Symbol: BUMP
Decimals of Precision: 18
The Liquidity Provision Program (LPP), was a rewards program designed to help bootstrap liquidity to the Bumper protocol and reward participants in BUMP tokens. It featured a character called Brian.
BUMP tokens which are not currently bonded can be staked to help increase the security and robustness of the protocol. Bumper allows you to stake on either a fixed term with different lockup periods offering increased reward multipliers.
It is important to note that, just as with other DeFi protocols, there are some inherent risks which are assumed for those staking tokens, and there is a risk of liquidation of a portion of tokens, albeit this is generally a small risk.
Few other protocols talk about these risks, but we believe it's important to be transparent about the risks which do exist.
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