Introducing Bond Boost: Enhancing BUMP Token Utility and Incentives

On Tuesday May 14, we're rolling out Bond Boost, a new initiative that's set to add a little extra oomph to your BUMP pocket. Let's break down what Bond Boost is all about and how it can benefit you.

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What's Bond Boost?

Simply put, Bond Boost gives you the option to bond your BUMP tokens when you're taking out a position on either side of a Bumper market. By bonding, you’ll earn BUMP tokens over the time that your position is open. Bonding is totally up to you – it's not something you have to do, but it means you can reduce your premium cost and earn greater yield.

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Boosted Hedging = Lower premium cost, even free!
Boosted Earning = Greater USDT yield with a boost from BUMP Tokens

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How Does It Work?

So, let's say you're ready to take out a new position in Bumper. When you're setting it up, you'll see the option to bond your BUMP tokens. It’ll show you your current BUMP balance and the range of BUMP tokens you can bond. If you don’t have any, or not enough, don’t worry you’ll be able to buy them through Uniswap without leaving the dApp.

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Keeping It Simple

We've kept things pretty straightforward with the Boosting. The amount you bond depends on the dollar value of your position, and there's a range you can choose from. You can go as low as 2.5% of the position size or as high as 250%, that’s 100x the dollar value of the minimum bond. Oh, and there's a bond cap of $10,000 worth of BUMP tokens, just to keep things in check. But if you hit the cap, there’s nothing stopping you from splitting your deposit over multiple positions.

So, for a $1,000 position when the price of the BUMP token is $0.05, you could bond from 500 - 50,000 BUMP.

For whatever bond amount you choose you'll earn an incentive rate of 50% APY for the term of your position.

For that $1,000 position let’s say you bond the maximum of 50,000 BUMP, and your position is open for 30 days, you’d earn 2,054 BUMP tokens. That’s 50% of 50,000 divided by 365 * 30.

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Now where it gets most interesting is if you look at the Current Premiums table you can work out for which parameters you’d end up with a Boost that pays your premium. 

“But that’d make Bumper free!” I hear you say. Yep, spot on. For some positions, your BUMP Boost will offset your entire premium.

Not too shabby, right? 

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Limited-Time Opportunity

Now, here's the thing… Bond Boost is just the beginning and it’s for a limited time. We're gearing up for future mandatory BUMP bonding for all positions and greater token utility. But for now, this is your chance to get even more value from Bumper than the awesome volatility trading games it offers!

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Wrapping Up

And there you have it, folks – the lowdown on Bond Boost. It's all about giving you more options, more rewards, and ultimately, more control over your Bumper experience. So whether you're all in or just testing the waters, we've got your back. Keep an eye out for Bond Boost going live next week, and let's take this journey together!

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