What are BUMP tokens?

What are BUMP tokens?

BUMP is an ERC-20 token with a total maximum supply of 250,000,000 tokens which have a scheduled release over time. 

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Where to buy/sell the Bump token

You can buy BUMP tokens exclusively on Uniswap at present, however as time goes by, it is our intention to list BUMP on a number of centralised and decentralised exchanges. 

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What is the BUMP token contract address? 

If you want to buy BUMP tokens on a decentralised exchange (such as Uniswap) you will likely need the contract address in order to import it into the token list.

The BUMP contract address is 0x785c34312dfa6b74f6f1829f79ade39042222168

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Utility of the BUMP token

BUMP tokens are at the heart of the Bumper crypto price protection protocol: 

- In order to use the Bumper dApp for opening Maker or Taker positions, you need BUMP tokens in your wallet. These tokens are bonded for the duration your position is open.

- Token holders can stake unbonded tokens, and earn staking rewards.

- BUMP is also the governance token of the Bumper protocol, with holders automatically getting the right to vote on improvement proposals.

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Bonding

In order to use the Bumper dApp for opening Maker or Taker positions, you need BUMP tokens in your wallet. This is called Bonding.

Bonded tokens cannot be transferred, but neither are they deducted in fees, and are returned to you when your position is closed.

However, should you withdraw or close your position early, you will forfeit your BUMP bond.

The exact amount of BUMP tokens required is calculated by the system, and the more you are protecting, the more BUMP you will need.

BUMP incentives - network and boost incentive

BUMP tokens are sometimes used as incentives by the Bumper protocol under certain conditions. 

A “Network incentive” is a payment in BUMP tokens made to early adopters who open Maker or Taker positions, to encourage these users to become more active participants in the protocol. 

In the event that regular premiums and/or yields are not attracting a sufficient number of new Makers and Takers, a “boost incentive” may come into play, issuing BUMP tokens to participants to further encourage users to open positions. 

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Staking 

Holders of BUMP tokens not being used for bonding may choose to support the network effect and health of the protocol by staking their tokens in the Bumper dApp.

As with all DeFi protocols, the staking of tokens does come with a small (albeit unlikely) degree of risk, and as such, those who stake their BUMP tokens earn a share of the daily BUMP rewards.

You can choose to stake your tokens on either a fixed term (30, 60 or 90 days) or stake on a more flexible term which suits you.

The amount you earn depends on your Staking Power, with up to 6x multipliers incentivising token holders to stake for the longest time.

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Governance

BUMP tokens also act as governance tokens for the Bumper protocol, allowing holders to influence new Bumper features, configuration updates or other changes through representative voting.

Voting power on Bumper Improvement Proposals is determined by holding size and the length of time held. Thus BUMP token holders who are early adopters and long-term supporters of the protocol are afforded extra weighting.

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Conclusion

The BUMP token really is at the heart of the Bumper protocol. It is literally the secret sauce that keeps the entire network running smoothly, and in a provably fair and decentralised manner.

In order to protect your crypto from price drops, or earn from providing liquidity as a Maker, you need to hold and bond BUMP tokens.

Even if you aren’t looking to use the protocol right now, you can increase your crypto holdings, as well as contribute to one of the world’s most unique DeFi protocols by simply buying and staking BUMP.

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Want to know the latest price of the BUMP token? Check us out on CoinMarketCap or CoinGecko (among other places) and you can purchase tokens on Uniswap.  

If you’d like to dig a little deeper into the BUMP token, we highly recommend reading the Bumper Litepaper. 

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