Bumper

BUMP

Bumper protects the value of your crypto using an 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. Bumper provides a decentralised software facility for ‘Takers’ of protection to operate diametrically to ‘Makers’ of liquidity. Protected positions incur a floating daily premium that is used to incentivise stablecoin depositors into a risk-free liquidity Reserve. The Bumper protocol is a pure, decentralised market for on-chain asset price risk, which is transferred from a stablecoin Reserve through to cascading redundancy modules. At any point in time the Reserve has a measurable aggregate liability representing all positions. Should the liability exceed parameterized safety levels, the protocol rebalances, firstly by utilising first order dynamics, such as Premium/ Yield curves/ BUMP distributions and then by opening up to arbitrageur bots and if necessary DEX’s. A separate risk pool, attracting a higher yield tranche, acts to backstop any realized losses caused by sharp volatility.