Bumper protocol launches on 07.09.2023 - Protect your crypto from downside volatility

If you are a crypto enthusiast, you know how volatile the market can be. One day, your portfolio is soaring to new heights, and the next day, it is crashing down to earth. You may have wished for a way to protect your crypto assets from downside risk, without missing out on the upside potential. Well, your wish is about to come true with the launch of Bumper protocol, a DeFi platform that offers price protection for crypto assets from downside volatility and market crashes.

What is Bumper protocol?

Bumper protocol is a DeFi platform that allows you to set the price you want to protect your crypto asset and if the market crashes, your asset will never fall below that price. Importantly, if the market pumps, your asset rises too. You can also earn a yield by depositing stablecoins, making money from the premiums paid by those who want to protect their assets.

Bumper protocol is different from other risk management tools such as stop losses, options desks, and insurance policies. It is more price-efficient, trustless, and provably fair. It does not require you to sell your asset or lock it in a contract. It uses a novel architecture that consists of four pools: two for depositing funds (either cryptocurrencies or stablecoins) and two for acting as reserves. The protocol state is measured at regular intervals, along with real-time price data, and state changes are compared with configurable targets.

Bumper protocol is built on the Ethereum blockchain and uses the native BUMP token as both a governance and a utility token. You need to stake BUMP tokens to open both protection and earning positions. Bumper protocol is governed by its community without third-party intermediaries.

How does Bumper protocol work?

To use Bumper protocol, you need to connect your wallet (such as MetaMask) to the browser-based dApp. You can choose to either protect your crypto asset or earn yield from stablecoins.

Protect your crypto asset

To protect your crypto asset, you need to follow these steps:

• Select the asset you want to protect (such as ETH) and the amount you want to deposit.
• Set the price you want to protect (such as $3000). This is the minimum value that your asset will have regardless of the market conditions.
• Stake some BUMP tokens to open your protection position.
• Deposit your asset into the protection pool.

Once you do this, you will receive some bumpered tokens (such as bETH) that represent your protected asset with the downside volatility removed. These are composable tokens that can be used as collateral for a loan or traded on other platforms.

You can close your protection position at any time by redeeming your bumpered tokens for the original asset and the accrued value. The accrued value is the difference between the current market price and the protected price, multiplied by the amount of bumpered tokens.
You will also pay a premium for using the protection service. The premium is based on the actual volatility of the crypto market, as it happens in real time. The premium is applied simultaneously to all protection positions incrementally, making it more cost-efficient than options or insurance.

Earn yield from stablecoins

To earn yield from stablecoins, you need to follow these steps:

• Select the stablecoin you want to deposit (such as USDC) and the amount you want to deposit.
• Stake some BUMP tokens to open your earning position.
• Deposit your stablecoin into the earning pool.

Once you do this, you will start earning yields derived from the premiums paid by the protection takers. The yields are distributed proportionally to your share of the earning pool.
You can withdraw your stablecoins and earned yields at any time by closing your earning position.

Why should you use Bumper protocol?

Bumper protocol offers many benefits for crypto users who want to manage their risk and optimize their returns. Here are some of them:

• You can protect your crypto assets from losing value when the price goes down, but you don’t miss out when it shoots back up.
• You can earn steady yields by providing liquidity with stablecoins.
• You can use bumpered tokens as collateral for loans or trade them on other platforms.
• You can participate in the governance of the protocol and benefit from its growth.
• You can enjoy a simple and user-friendly interface that allows you to open positions with a few clicks.

How can you join Bumper protocol?

Bumper protocol is launching on September 07, 2023. To celebrate the launch, they are offering up to $250,000 worth of BUMP incentives for early adopters who protect their crypto or earn yield with Bumper. You can register your details on their website to stay updated with the launch plans and claim your rewards.
You can also follow them on their social media channels and join their community to learn more about the protocol and its features. You can find them on:

• Twitter
• Telegram
• Discord
• Medium
• YouTube

Bumper protocol is a game-changer for crypto risk management. It offers a revolutionary way to protect your crypto assets from price drops and earn yields from stablecoins. Don’t miss this opportunity to join the Bumper revolution and secure your crypto future.

What do you think about Bumper protocol? Are you excited to try it out? Let us know in the comments below. 😊

Sources:

• (1) DeFi Price Protection For Crypto | Bumper | Bumper.
• (2) Overview of the Bumper protocol | Bumper.
• (3) How Bumper Pools work — an overview of the architecture of ... - Medium | Medium.
• (4) Bumper protocol objectives and liabilities | Bumper.
• (5) Bumper protocol objectives and liabilities | by Bumper - Medium | Medium.

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