Connect your wallet, Choose a protection floor and a term length, then deposit your crypto into Bumper. You will receive a composable Bumpered Asset token which represents your protected asset with the downside volatility removed.
If the market dips below the floor, when your exit your position you receive stablecoins to the value of your chosen floor. But if it goes to the moon you don’t lose out, and just claim your protected asset back.
It doesn’t matter how many times the price moves above or below the floor, all that matters is where it is when you exit your position. You need to hold BUMP tokens which are bonded into the protocol whilst your position is open, and returned after it’s closed. Learn more about BUMP tokens.
You get to enjoy the upside gains. When you exit your position you retrieve your original tokens.
The value of your wallet is protected. When you exit you get stablecoins at your chosen floor level.
Bumper’s novel architecture incorporates the most notable financial algorithm since the Black-Scholes formula was conceived over 50 years ago.
Dynamically priced premiums, calculated based on market activity and protocol health, are designed to minimise the cost of protection, making Bumper more attractive than buying options contracts.
Example: Single Position Analysis
Date
Deposited Value
ETH Amount
Term (Days)
Floor Level*
Deribit Premium
Bumper Premium
Saving
09/12/2022
$10,000
6.427
120
70%
$506.63
08/02/2023
$10,000
5.290
90
85%
$416.82
06/04/2023
$10,000
5.979
60
90%
$496.78
11/05/2023
$10,000
7.830
30
95%
$384.33
Date
09/12/2022
Deposited Value
$ 10,000
ETH Amount
6.427
Term (Days)
120
Floor Level*
70%
Deribit Premium
$ 506.63
Date
09/12/2022
Deposited Value
$ 10,000
ETH Amount
6.427
Term (Days)
120
Floor Level*
70%
Deribit Premium
$ 506.63
Date
09/12/2022
Deposited Value
$ 10,000
ETH Amount
6.427
Term (Days)
120
Floor Level*
70%
Deribit Premium
$ 506.63
Date
06/04/2023
Deposited Value
$10,000
ETH Amount
5.979
Term (Days)
60
Floor Level*
90%
Deribit Premium
$ 496.78
*Equivalent to Put Option strike price, based on the last 12 months ETH price data.
Users who are the early to open positions on Bumper will earn a share of BUMP token rewards.
These incentives are in addition to any profit you earn, and are calculated based on the amount of assets locked, term length and TVL in the protocol at the time. Rewards diminish as TVL increases, meaning early adopters gain the most benefit.
Chart for illustrative purposes only.
Many newcomers to the crypto space worry they will lose their investment. Bumper is the perfect, low cost solution to keeping your value intact without having to keep your crypto on a centralised exchange.
Bumper is perfect for preserving your gains during bull cycles, letting you trade in and out of stablecoins passively without incurring slippage fees.
Bumper stops your the value of your wallet getting utterly Rekt should the market crash. This allows you to keep stacking, even during a bear cycle.
Bumper protects assets whilst allowing you to continue to participate in other DeFi protocols using the composable Bumpered asset which represents your protected asset with the downside volatility removed.
Fund managers and institutions with a fiduciary responsibility to hedge risk on behalf of clients can use Bumper as a cost-effective solution against downside volatility.
Whales with large wallets can use Bumper to hedge against significant losses without trading.
Below are some examples of scenarios when you might want to Bumper your crypto. Click to find out more
Bumper's core function is to act as a shield against the unpredictable nature of crypto markets. By setting a floor price and a protection term for your assets, you create a safety net that protects against sudden downturns while still allowing you to benefit from upward trends. The premium for this protection is deducted from the tokens you lock into the protocol, without requiring additional capital to cover the costs.
When to Use: In a highly volatile market or when you want to secure a portion of your assets.
How to Use: Set a floor price for your crypto assets, ensuring that their value never falls below that level. It's like having insurance against sudden market crashes.
Bumper isn't just about protection; it's also a platform for earning yields. By depositing stablecoins, you essentially buy risk from protection seekers, earning premiums in return. It's a proactive way to engage with the Bumper ecosystem and turn risk management into a profit-making opportunity.
When to Use: When you're looking to earn yields from premiums.
How to Use: Open an earning position in Bumper. Select the amount of stablecoins you wish to deposit, and the relevant market you wish to provide liquidity for, then choose a term length and your risk tier to start earning yield.
Bumper doesn’t just allow you to play one side of the market or the other, but lets you simultaneously open both protection and earning positions, creating a balanced portfolio that safeguards your assets while also earning yields. It's a strategy for those seeking equilibrium in their investment approach.
When to Use: When you want a balanced risk-reward profile and you hold both stablecoins and crypto assets which are accepted by Bumper.
How to Use: Simultaneously take positions. Protect your assets by opening a protection position then open an earning position concurrently.
Diversification is a cornerstone of sound investment, and Bumper enables you to apply this principle to your crypto portfolio. With Bumper you can assign different floor prices to various proportions of your crypto assets as you see fit, and there is no limit to the number of positions you can have open.
This strategy works well for both protection and earning positions, allowing users to effectively assign different risk profiles.
When to Use: This strategy is ideal for users looking to mitigate the risk of relying on a single floor price, or risk tier. It's particularly useful in volatile markets for securing different levels of protection or assuming greater risk for increased yields for various portions of your portfolio,
How to Use: Within the Bumper platform, you can open multiple protection or earning positions as required and set individual floor prices for each. Note that each new position however does incur an individual gas fee, so it’s advisable to be prudent with how many positions you open at a time.
When users open a position, they are returned bumpered assets, and may be compatible with other DeFi platforms, opening the door to sophisticated investment strategies. By integrating Bumper's protection with lending, borrowing, or other DeFi tools, you can create unique investment paths that go beyond traditional risk management.
When to Use: When you want to create sophisticated investment strategies, or minimise your risk of liquidation in another DeFi protocol should the price of your assets drop significantly.
How to Use: Integrate Bumper with other DeFi platforms to craft complex strategies. Combine Bumper's protection with lending, borrowing, or other DeFi tools to create unique investment paths.
The Profit Lock strategy is all about capitalising on market gains without missing out on potential further upside opportunities. By using Bumper, you can lock in the profits you've made during a market pump, ensuring that you won't lose those gains if the market reverses. At the same time, your assets remain exposed to further upward movement, allowing you to continue benefiting if the market keeps rising.
When to Use: This strategy is ideal when you've experienced significant gains in a bullish market and want to protect those profits without selling the assets. It's perfect for times when the market has just reached new highs, and you want to hedge against potential downturns without missing out on further gains.
How to Use: Set a floor price at a level that locks in your desired profits. This ensures that if the market price drops below this level, your assets' value won't fall further. Meanwhile, if the market continues to rise, your assets will still participate in that growth.
Bumper is a superior alternative to stop losses and more price efficient than Options Desks.
A stop loss converts your crypto asset to stablecoins or fiat when its triggered. But if the price rebounds, you end up missing out on upside gains.
Bumper preserves upside gains whilst protecting your wallets value from drops, and it does it without having to transfer your tokens to an exchange.
Bumper’s price protection is a novel alternative to complex and opaque Put Options, and have with significant benefits for both sides of the market.
Price-efficient incremental premiums replace up-front fixed costs, and the ability to utilise Bumpered assets in external DeFi protocols makes the protocol attractive to a wide range of user profiles.
Stops you losing value if the market goes down
Continue to profit if price goes back up
Not if triggered
Normally % of trade size
Fixed, set by seller
Fixed, set by insurer
Incremental based on market volatility
Are you returned an asset which can be used in other protocols?
Stops you losing value if the market goes down
Yes
Continue to profit if price goes back up
Not if triggered
Normally % of trade size
Are you returned an asset which can be used in other protocols?
No
Stops you losing value if the market goes down
Yes
Continue to profit if price goes back up
No
Fixed, set by seller
Are you returned an asset which can be used in other protocols?
No
Stops you losing value if the market goes down
No
Continue to profit if price goes back up
No
Fixed, set by insurer
Are you returned an asset which can be used in other protocols?
No
Stops you losing value if the market goes down
Yes
Continue to profit if price goes back up
Yes
Incremental based on market volatility
Are you returned an asset which can be used in other protocols?
Yes
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Protect the price of your crypto assets with Bumper
