Bumper has been designed as a simpler, more cost-efficient and accessible risk market, available to everyone without the need to provide personal details or undergo KYC.
Bumper's is not only more cost-effective than options for buyers, but it also generates better yields on average than selling puts on competitor options desks.
Early users will earn massive BUMP bonuses, with the first effectively covering the cost of premiums.
With Bumper, you simply choose a price floor (similar to a strike price) for your crypto assets and a protection term (like an expiry date). If the market crashes, your asset's value will never fall below this floor. However, if the market surges, your asset's value rises with it.
Bumper’s unique crypto price protection is on average around 10pp cheaper than buying a put on a crypto options platform.
Whereas most crypto options platforms require users to navigate complex contracts and often demand significant capital upfront. Bumper, on the other hand, offers a streamlined solution that eliminates these barriers.
No more Greeks, delta hedging or complicated premium calculations to work through, just a simple interface that eliminates all the guesswork and which minimises risk and maximises profit.
Comparison of annualised premiums on Bumper versus Black Scholes market premium. Consider also that options platforms charge a fee above Black Scholes.
Bumper provides a sustainable way for liquidity providers to earn yield by depositing stablecoins and assuming some of the risk from buyers of protection.
With highly attractive real yields, and additional token incentives, Bumper on average generates enhanced returns compared to options desks.Bumper delivers enhanced yields even during bear markets. Using real historic data during the 2022 bear market, and found that that Bumper would have delivered a significantly higher yield for put sellers compared to options desks.
Showing annualised Bumper annualised yields during the 2022 bear market.
Annualised average yields using Bumper by selected term length. The main box area shows the Standard Deviation yield earning potential.
In order to open a position using Bumper, users are required to bond an amount of BUMP tokens for the duration of their position. BUMP tokens as well as acting as a direct utility token also function as the governance token for the protocol’s DAO.This unique system has a number of network effects. The value of a tokenomic system that creates alignment between users and tokenholders, is an optimum design for decentralised systems, which assists in correlating the health of the protocol with the demands of BUMP holders, and disincentivises and reduces the scope of risk from malicious actors.
Those who are early always make the greatest gains
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