The DeFi landscape could be about to witness a seismic shift as Bumper makes its much-anticipated debut.
This isn't just another protocol; it’s not a meme-coin with no utility designed for rapid YOLO gains, and just as rapid dumping to end up a bag in some poor unfortunate’s portfolio who bought at the top.
No, Bumper is a revolutionary approach to managing and profiting from crypto volatility.
Because volatility is both a feature and a bug of the crypto ecosystem. For sure, it’s what attracted plenty of people into the space in the first place - the chance to make huge gains. But equally, to many, crypto’s wild volatility is what keeps them at bay, and it all comes down to risk.
Risk management in crypto is clunky. In fact, it’s clunky in the tradFi world, too, and you’d think in the high-frequency world of the moment that someone would have come up with some new ways to manage it better, rather than the same-old rehashing of the traditional finance world’s tools.
Traditional options desks like Deribit have been the go-to platforms for more sophisticated traders hedging against crypto's notorious price swings. But options are complicated - really complicated - and not for everyone.
However, Bumper introduces a more cost-efficient and straightforward mechanism. In live data simulations, Bumper has proven to be around 30% cheaper than put options on Deribit. How? Through dynamically calculated premiums based on protocol health, market volatility, and price proximity from the floors. These premiums form the yield for liquidity providers, offering an attractive range of 3-18% per annum.
Bumper is designed to work for all participants simultaneously, and that’s what makes it so interesting. Rather than one side taking all the profit, and the other landed with all the losses, Bumper is more of an engine which strives for balance - a fair price for protection and a fair yield for liquidity providers.
You can find out more about how Bumper works here.
Bumper's dual functionality allows users to protect their assets and earn simultaneously. Users can lock their crypto, initially ETH, into the protocol, setting a floor price and a term length.
If the price of ETH falls below the floor, users can claim stablecoins at that value. If not, they reclaim their locked crypto. Either way, a premium is paid, which becomes the yield for liquidity providers who commit USDC to the protocol.
For sure, Bumper is not just another protocol; it's a paradigm shift. It's about making intelligent choices in a volatile market, without the hassle and exorbitant costs associated with traditional platforms.
Bumper is not just for the "yield seekers" or the "protection takers"; it's for anyone who understands the value of innovation in the crypto space.
Welcome to the future of navigating and profiting from crypto volatility. Welcome to Bumper.
Profit handsomely from being one of the first users of the protocol. To celebrate the launch of the protocol, after 3 years of intense research and development, we’re giving away up to $250,000 in BUMP rewards, on top of any profit you earn from the protocol, to early adopters. Click here to learn more about how Bumper's early adopter incentives work.
Bumper launches 31 August 2023 on the Ethereum Mainnet.
EDIT: Bumper's launch has been postponed until 7 September 2023.
Disclaimer:
Any information provided on this website/publication is for general information purposes only, and does not constitute investment advice, financial advice, trading advice, recommendations, or any form of solicitation. No reliance can be placed on any information, content, or material stated on this website/publication. Accordingly, you must verify all information independently before utilising the Bumper protocol, and all decisions based on any information are your sole responsibility, and we shall have no liability for such decisions. Conduct your own due diligence and consult your financial advisor before making any investment decisions. Visit our website for full terms and conditions.
In this article, we compare using Bumper with Put Options and examine its advantages for DeFi traders wanting to trade volatility with more flexibility.
