You’re short-term bearish but long-term bullish.
As a Trader expecting short-term downside volatility, deposit the asset into Bumper with a defined floor price (up to 99%) and timeframe (as little as 7 days). If the downside price movement plays out, traders can claim USDC to the full value of their floor price, then re-accumulate the asset at a lower price and ride longer-term gains to the upside.
You're long-term bullish but want to hedge against some potential short-term price correction.
As a Trader you deposit the asset into Bumper, you own the asset and you’re long, but have protection against the downside. If the price rides higher you're only charged a diminishing premium streamed daily based on market volatility and importantly have peace of mind with the downside hedge. If the correction does play out at the end of your term you're returned USDC at the protected price.
Price has pumped on an asset you hold, you want to lock in profits but also retain exposure to further upside. As a trader, you lock in profits with a Bumper hedge position following a pump in price. If the price rides higher you still own the asset and ride those gains higher, if a correction does play out, at the end of your term you're returned USDC at the protection price.
The market appears to be bullish, but pullbacks are expected and protection is required to maximise profits.
As a Trader moving with the upwards momentum of the market, you take a Bumpered position to protect at a floor and, once you feel the upwards movement has breached a key resistance zone, cancel your position and set another floor at a higher point, securing that support/resistance level. If a downwards move occurs and the new support is properly breached, once out of your policy then a claim will act as an excellent trade-out at the top. Use the newly acquired stablecoin funds to buy back the asset at a cheaper price Rinse and repeat. If the price keeps going up then refer to Step 1.
You're long-term bullish on ETH and have it staked on Lido. Instead of re-staking your stETH in Balancer or Pendle for another 3-5% annual APR, play the accumulation game and trade your stETH using Bumper. Trade-up your yield-bearing assets. Use the 'Short Accumulation' or 'Trailing Protection' strategy above to trade downside volatility and re-buy cheaper stETH. Each successful accumulation trade will potentially be 2-10%, rinse and repeat 5-10 times through the year for massive compounding trade exposure instead of re-staking stETH for a low APR.
Bumper is unique in the sense that it provides positive PNL exposure whatever way the market moves.
Using Bumper as a consecutive hedge utilises the accumulation and trailing protection strategies detailed above in a back-to-back fashion.
Eg. Taking a 99% floor, 7 day position. If the price has dropped claim USDC at the floor price and re-buy the asset at lower prices then repeat the 99% 7 day position. As prices rise and fall you benefit from accumulating more of the asset and then the rise in prices.
