Bumper Overview

What is Bumper?

Bumper is a decentralized insurance DeFi protocol on Ethereum, where liquidity providers transfer asset price risk to those willing to pay a premium. The stablecoin reserve of Bumper ensures that price risks are cascaded via redundancy modules, providing a decentralized method to eliminate price risk for crypto assets.

Main Features
Price protection for crypto assets during market crashes
Ability to earn yields by depositing stablecoins
Staking BUMP tokens to support the network
Price-efficient and trustless risk management strategy
Community-governed risk market
Blockchains
Ethereum

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Frequently asked questions

Bumper protects crypto assets during market crashes by providing price protection from downside volatility. When the price of a crypto asset drops, Bumper ensures that the value of the asset is not lost. However, if the price shoots back up, even if it previously dropped below a chosen floor level, users still benefit from the gains. Bumper achieves this through its underlying architecture, which is highly complex but allows for a simple user experience through its browser-based dApp. Bumpered assets, represented by composable tokens, have the downside volatility removed while the position is open. These tokens can also be used as collateral for loans, with the risk of forced liquidation reduced or eliminated. Bumper is a price-efficient, trustless, and provably fair risk market governed by its community without the need for third-party intermediaries. It offers downside protection, pooled liquidity, and incremental premiums, making it a more cost-efficient and flexible risk management strategy compared to other options. Additionally, Bumper generates yields for users through premiums paid by protection takers and surplus funds repurposed into automated yield farming. These yields range from 3-18% APR and are higher on average compared to sellers of put options on cryptocurrency options platforms.

To earn yields with Bumper, users can deposit USDC stablecoins into the platform. Yields are derived from premiums paid by protection takers in exchange for assuming some risk. Bumper can also repurpose surplus funds into automated yield farming, increasing overall yields. On average, Bumper offers pure USDC yields ranging from 3-18% APR, which are higher compared to sellers of put options on cryptocurrency options platforms. Yields can be withdrawn by stablecoin depositors when they close their position. Bumper's unique pooled liquidity architecture protects individual depositors from extreme losses during market crashes while generating higher annualized returns and instant yield generation. Additionally, Bumper provides downside protection for crypto assets and offers a more cost-efficient and flexible risk management strategy.

Staking BUMP tokens provides several benefits. Firstly, holders of BUMP tokens gain the ability to participate in decision-making and protocol management as Bumper transitions into a DAO, giving them a say in the governance of the project. Additionally, staking BUMP tokens allows holders to proportionally share in the daily BUMP rewards, providing an opportunity to earn additional tokens. There are both fixed and flexible staking terms available, with long-term stakers receiving juicy multipliers. Furthermore, BUMP tokens are required for bonding when opening positions in the price protection market pairs supported by Bumper, providing utility and driving more value to the token as the protocol expands. Staking also helps support the protocol and contributes to the network effect of Bumper's price protection market pairs.

Bumper ensures price-efficiency and trustlessness through its unique architecture and approach to risk management. It is a price-efficient, trustless, and provably fair risk market governed by its community without third-party intermediaries.

Bumper offers price protection for crypto assets from downside volatility and market crashes. Users can protect their assets when the market drops and still enjoy gains when it recovers. The platform is designed to be simpler, more cost-efficient, and more flexible than other risk management strategies.

To use Bumper, users connect their wallet, choose a protection floor and term length, and deposit their crypto assets. They receive a composable Bumpered Asset token that represents their protected asset with the downside volatility removed. Regardless of how many times the price moves above or below the floor, the only thing that matters is where it is when the position closes.

If the price goes up, users get to enjoy the upside gains and retrieve their original tokens at the end of the term. If the price goes down, the value of their wallet is protected, and they receive stablecoins at their chosen floor level at the end of the term.

Bumper premiums are, on average, 30% cheaper than observed market prices for ETH put options. The platform's architecture incorporates a notable financial algorithm, making it highly efficient in hedging risk.

Bumpered assets can also be used as collateral for loans, reducing the risk of forced liquidation. The platform does not require KYC or ID checks, ensuring a trustless experience for users.

Overall, Bumper's architecture and functionality ensure price-efficiency and trustlessness in its risk management approach.

Bumper is governed by its community without the involvement of third-party intermediaries. As Bumper transitions into a DAO (Decentralized Autonomous Organization), the BUMP token will play a role in the governance of the project. Holders of the BUMP token will have the ability to participate in decision-making and protocol management. This means that the community will have a say in the direction and operation of the Bumper Protocol.

No, Bumper is specifically designed to protect crypto assets from losing value and does not provide protection for assets other than crypto.

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