In this conversation, Akasha Rose, Bumper’s new marketing lead, sits down with Gareth Ward, co-founder of Bumper.Fi, to explore the features and innovations that make Bumper stand out in the DeFi and crypto space.

From managing market volatility to gamifying yield and creating decentralised risk marketplaces, Gareth shares insights into Bumper’s unique approach and its future potential — all deployed on Arbitrum One, where both hedging and earning positions are supported using the BUMP token.

“Bumper is built for all market conditions, giving users a safety net that lets them protect their assets while still capturing gains when the market recovers.” — Gareth Ward

Akasha Rose: Gareth, first let’s go into why users should consider Bumper during a bear market?

Gareth Ward: Bumper is built for all market conditions — giving users a safety net that lets them protect their assets while still capturing gains when the market recovers. In a bear market, you can hedge your assets and set a floor price that protects your value, even if the market drops. It’s about providing people with a tool to manage uncertainty while still having the chance for gains when markets recover. To give you an example, we have been running a “Bumper Intern” account that has been hedging their wstETH in the protocol since January and it has not only protected those assets but increased the amount of wstETH by 39% and the USD value of those assets are a wapping 52% higher. If they’d just done a hodl then they’d only be up about 9%. It seems a no-brainer to use Bumper to manage risk and to make money.

AR: How does Bumper handle market volatility, and what makes it stand out?

GW:Bumper’s approach is simple yet powerful. If the price of your protected asset falls below the agreed floor price, you can claim a payout equivalent to that floor value. If the price rises, you’re free to close your position and capture the gains without any loss. We use an AI-powered pooled risk market where premiums are used to maintain balance and keep the protocol secure, even during volatile times. And with everything happening on Arbitrum One, users can trust the efficiency and scalability of the platform.

AR: What options do users have when using Bumper?\GW: We offer a few routes. For users who prefer simplicity, our Express Hedge and Earn options are perfect — they offer the most popular settings so you don’t need deep knowledge of the system to protect your position. For traders who want more control, our dashboard allows them to customize their risk levels and terms. The earners in our ecosystem function as the “Makers,” providing liquidity, while the hedgers are the “Takers” using that liquidity to protect their assets.

AR: You mentioned incentivizing market participants. Can you explain how Bumper balances Makers and Takers?

GW: Bumper’s protocol functions like a marketplace for risk. We have Takers who hedge their assets (risk sellers) and Makers who provide liquidity (risk buyers) in the form of stablecoins like USDT. The protocol constantly measures and rebalances the risk. As a basic example, if there are too many Takers, premiums rise to attract more Makers, and if there are too many Makers, the premiums decrease. This creates a dynamic, balanced, and fair environment for everyone involved.

AR: Can you walk us through Bumper’s EARN position and how it works?

GW: Sure, the earners are essentially the Makers — they provide liquidity to support the Takers. It’s a fair system designed to balance risk and rewards dynamically. Makers provide stablecoin liquidity, and in return, they earn premiums paid by the Takers. The protocol uses a rebalancing mechanism to maintain equilibrium.

AR: It sounds like Bumper has found a way to gamify risk management. What about the protocol’s performance compared to traditional options?

GW: Bumper’s efficiency allows it to offer cheaper premiums than centralized and decentralized options. Through extensive simulations and real-world use, we’ve shown that our approach is more cost-effective, beating traditional Black-Scholes option pricing models. It’s all about creating a fair marketplace for risk, optimized using AI to deliver value.

AR: How does Bumper provide transparency for its users?

GW: We have a Market Data Panel that offers real-time insights into premiums, yields, and other metrics, allowing users to monitor and assess their positions with clarity. The panel is designed to give users an accurate view of the protocol’s performance, ensuring they can make informed decisions.

AR: And what about bonding — can you explain how it fits into the ecosystem?

GW: Bonding was initially designed to build a network effect, and while it remains optional, it offers incentives in BUMP tokens. Users who choose to bond (basically staking BUMP) reduce their overall costs when taking positions. Essentially, it’s like staking your tokens, with added benefits for those who participate, but we kept it optional to ensure low friction and user flexibility.

AR: What’s the future for Bumper in the broader crypto ecosystem?

GW: We’re constantly improving our data streams, refining our bonding and earning models, and ensuring that our protocol remains a top choice for those looking to manage volatility and capture upside. Our ultimate goal is to make Bumper an essential tool for traders, regardless of market conditions.

AR: Any final thoughts for crypto traders considering joining the Bumper community?

GW: We’re just getting started. The market is always changing, and we’ve built Bumper to adapt and thrive in any bull or bear cycle. If you’re a trader or liquidity provider looking for stability and growth opportunities, Bumper is your best option. Our protocol is designed to protect, engage, and empower the community, and we’re excited about what’s next.

AR: Thanks, Gareth, for this conversation. Bumper seems poised to transform the crypto market landscape.

GW: Thank you, Akasha. We’re excited about the future and building something impactful with our community.

“With Bumper, you’re not just protecting your assets — you’re positioning yourself to thrive through any market cycle.” — Gareth Ward

About Bumper.Fi:

Bumper.Fi is a DeFi protocol offering innovative hedging solutions for cryptocurrency volatility, deployed on Arbitrum One. Balancing risk with liquidity incentives, Bumper creates a fair, decentralized trading environment that adapts to market conditions, providing superior protection and earning opportunities for users across the crypto space. Powered by the BUMP token, the ecosystem offers users additional incentives and control, ensuring a dynamic and responsive crypto management experience.

Stay Connected to Bumper:

Join our Discord — https://discord.gg/YyzRws4Ujd

Follow us on Twitter — https://www.twitter.com/bumperfinance

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