Welcome to 2024! In the first Sitrep of the year and the first since Bumper went live on Arbitrum, we’re going to round up the current state of play, where the protocol’s at and what’s coming up.
With the protocol now live on Arbitrum we’ve reached over $325k in TVL. The positions opened across both markets have shown us that the core mechanics of the protocol are working as intended. However, we’ve identified two issues which are impacting premiums and yields which we’ll go into detail below.
We've been doing some analysis on some of the positions that have been taken and we wanted to share an example of a position that was taken after one of our patches. This was for about 0.2 WBTC (approx. $9.5k worth at the time) and it was for a 21-day term and floor price of 99%. Earlier in the week, the user had accumulated just shy of $18 worth of premiums so this worked out to less than 0.05% per day to protect about $9,400 worth of BTC. All this is considering that daily volatility has been about 2-2.5% over that same time. Now, have we got your attention yet?
A key factor for being able to use Bumper to trade on price movement is efficient premiums. Despite seeing premiums accurately accrued and charged on the Ethereum mainnet we identified an issue with premiums on Arbitrum.
The implementation of the oracle on Arbitrum is updating a lot more frequently than expected due to a lower deviation threshold on the ETH/USD feed. This caused over-charging of premiums until we issued a patch on 26th December. Those extra premiums will be re-imbursed to those accounts once we complete the reconciliation process.
This appears to have ironed out this issue and we continue to monitor the markets.
If you’ve opened a position and have seen premiums significantly higher than estimated please open a support ticket by emailing firstname.lastname@example.org so we can review your position.
One of the key features that were added, post-Ethereum mainnet launch, was providing premium estimates for new positions. Given the nature of how premiums are calculated, we’re continually looking to optimise the quality and accuracy of estimates.
Earlier in the week we experienced an API issue which took the estimates offline but we’re working on resolving this. Ideally we’re aiming to not be reliant on third-party data for this feature.
The second of the issues mentioned above was that yields were showing as too low due to a missing parameter that was introduced into the design of the Maker yield calculation after our mainnet deployment. A patch was issued for this on the 7th of Jan to include this new parameter.
We’ve had great feedback on the simplicity of the UI overhaul. We think it aligns much better with the killer usage of trading off volatility. We’re continuing to evolve the interface looking at a more intuitive chart, one which reflects chosen parameters for hedged positions and richer position data. Look out for these updates.
Thank you to those who have reported bugs or inconsistencies in the dApp interface. We’re working through the interface bug list with the UI team and will apply the outstanding updates once resolved
Alongside any bugs we’re also keen to hear about any suggestions and improvements we could make to the interface. Click the little ‘Feedback’ tab on the right side of the dApp screen, or email email@example.com.
With the addition of the ability to close your position early (aka “cancellation”) we opened up a much broader range of use cases to trade on volatility. Check out our recent blog to see some of our strategies for optimal Bumpering. [link]
We’re planning to make a regular video segment to discuss the market and opportunities to use Bumper.
Check out the first trading chat
Jump into the #bumper-trading chat in Discord and let us know your thoughts on trading strategies.
Once we have rolled out the premium and yield updates we’re planning a trading competition to let you put your best strategies into play for some prizes.
With Bumper you can profit when the market goes up and when it goes down. The competition will reward those who can find the opportunities to trade on directionality and beat not only the market but fellow community members.
Stay tuned for more details.
While the protocol was coming up to speed on Arbitrum and token liquidity was low we decided to pause the requirement to bond BUMP tokens. This is temporary to support TVL growth. Over time, as the TVL increases, the intention is to restore the Bond from 0% back to the original value of 2.5%. As always, any opportunity to expand the utility of the token within the Bumper ecosystem is of great interest to ensure we’re layering value on the BUMP token.
We’ve also read and taken on board all the feedback from community on this topic - thank you!
Development work and protocol growth efforts continue into 2024 and here’s a brief summary of what’s coming up for Bumper.
Our next Office Hours is planned for Thursday 18th January but keep an eye on Discord for updates. If you’ve missed any recent Office Hours updates you can see them all on Youtube.
If you have any questions for the next Office Hours drop them here: https://www.bumper.fi/community-questions
Bumper protects the value of your crypto using a radically innovative DeFi protocol. Set the price you want to protect and if the market crashes, your asset will never fall below that price. Importantly, if the market pumps, your asset rises too.
Stay Connected to Bumper:
Join our Discord — https://discord.gg/YyzRws4Ujd
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Visit our Website — https://bumper.fi
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