Following the release of Bumper v1.0, a number of community members have requested some new features and enhancements to the protocol. As a result, we’ve been working on a number of these and we’ve now deployed a number of new updates.
Until now, Bumper has offered incremental 30 day term lengths for locking in your crypto assets. Many in our community have been asking to protect their assets without locking them up for extended periods. We heard you, and so we’re happy to announce that Bumper has now introduced new 7, 14, and 21-day terms.
These shorter policies are perfect for users who wish to hedge against market volatility in the near term, and make Bumper a more attractive and flexible proposition for both retail and professional traders. Shorter terms mean Bumper is able to compete more effectively with crypto options desks, many of which offer contracts with short-term expiry dates. Sentiment can change very quickly in crypto, and month-long (and multi-month long) terms, whilst useful for users with a longer term outlook, do not necessarily work for users who are more actively involved in trading.
We've also rolled out higher price floors closer to the current market value. Until now, users could only select incremental 5% floors, with the highest being at 95% of current value.The latest update introduces floor levels of 96%, 97%, 98%, and 99% which will sit alongside the existing floors.
Our mission was always to make hedging against downside volatility more accessible, and our followers have been saying for a while that they want to see Bumper able to provide users with current price protection for their crypto. This upgrade directly addresses this, and makes Bumper a much more attractive protocol for users seeking protection close to the At-The-Money level.
We've also rolled out a feature that allows you to see the estimated premium for your protection contract before you lock in your assets.
Because of the nature of Bumper, premiums are calculated during the position term and deducted ex-post facto at the end of the position, allowing Bumper to only charge for “volatility used” and this is one of the major reasons why Bumper is on average much cheaper than Options. However, we appreciate that many users are unwilling to commit their assets to the protocol without at least some indication of premia they will be charged.
Including estimated premia into the protocol allows users to make more informed decisions about when to deploy their assets into Bumper, and provides a level of comparison against options desks.
These new features build on and enhance Bumper’s existing product offering, and are the next step in a complete revolution in risk management in the crypto space.
For more info, check out Bumper’s website or join our community here.
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.
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