It’s been a torrid Spring for crypto holders. The impact of April’s vertiginous drop in Bitcoin and Ethereum’s value sent shockwaves through the wider crypto market. The DeFi space, in particular, teetered in the winds as jittery investors drained liquidity from pools and many of those engaged suffered an impermanent loss. The markets eventually stabilised, and many observers now think this is the “coffee and accumulation” phase before the next big lurch upwards – or downwards. Others are more negative, and feel the bear market has begun and asset prices will continue to slump in the face of increased government oversight and newly-minted retail investors getting cold feet.
After the recent body-blows, even devoted crypto holders are starting to consider where they want their personal floor to be. However, there’s no easy way to set that floor without simply cashing out your assets entirely. For some, the idea of going back to fiat is untenable, for others, their assets’ involvement in DeFi protocols mean they have no desire to surrender the productivity of their accumulated crypto. And of course, it may be that crypto’s bull run is really just getting started.
The Limits of Stop-Losses
Stop-Losses, although one method of minimizing risk, are cumbersome, fiddly and require extensive micromanagement. What’s more, they’re at risk of being triggered by flash crashes. Even if the limit is hit as part of a natural ebb and flow of the market, we all know crypto prices can surge very quickly – and those using Stop-Losses can miss out on fat gains just because their assets skirted the line or some over-active bots dragged the price down all-too-briefly.
What crypto holders really want is a way to guarantee a floor on their asset they are comfortable with while still retaining their crypto for use in yield farming and not missing out on the next pump for the sake of a little security.
Bumper’s Simple Approach to Protecting Assets
This, in essence, is what Bumper Finance offers – and it promises to spark a revolution in the DeFi space and wider crypto market by protecting assets from price drops. It’s marketed as God-mode for crypto, and it’s easy to see how it will restore faith in the crypto community.
It’s super easy to use. If a user wants to protect an asset. All they need to do is choose the level of protection they want. The GUI is very clean, intuitive and clear about what everything will cost. It only takes six clicks to get protection and is simple enough even for crypto novices to use.
The three standard policies offer 80%, 90% and 95% protection. Then, by paying a small premium (using the protocol’s native $BUMP token), their asset is fully protected at a USDC amount. So if Ethereum, the first asset on the platform, collapses by 40%, those protected by Bumper Finance can simply cash out their policy and get their money out.
Use it and Not Lose It
Best of all, the asset isn’t locked. Once a policy is taken then the Ethereum is swapped for bETH, which is a fully liquid token that can be put to use in the wider DeFi landscape. It means that Bumper Finance’s offering promises not just to be a boon for those involved in the protocol, but the entire market, as otherwise nervous investors are free to continue providing their crypto to liquidity pools and powering up the market as a whole.
So where do those premiums go? Well – they go straight into the hands of people putting up the USDC liquidity for protection. After the recent price-movements, with a staggering bull run followed by the recent downswing, many crypto veterans are sitting on stablecoins while they wait for the market to move and they want to find a place to earn great interest on it.
Bumper Launches Generous Liquidity Program
Bumper Finance’s liquidity program is an fantastically generous way to get the protocol started. People who join the program stand to gain 300%+ APR on their investment if they lock their funds until October 14th. 100% APR is the base offering, yielded from the premiums those protecting their assets pay. The program launched 14th July, lasts for 12 weeks, and users can enter anytime through the Bumper dApp.
However, early backers will also get exclusive access to a private sale of the token before it goes public. If the team reach their $150 million TVL target (and, with $7 million already pledged on day one, it seems certain), then the token price at private sale will be $1.80, with a public sale currently pegged at $2.40. Holders of $BUMP by the end of the program will be able to dictate governance on the protocol, or sell it on the open market. If the market continues moving sideways, more and more people will be looking to protect their assets and, as $BUMP is how you do that, it’s sure to lead to an upward price even as the market slumps.
Investors Pile In
For all these reasons, investor demand has been so high that the team rejected $32 million of funding as they want more of the potential value of $BUMP to be dispersed to the wider community and propel organic growth. They did take $10 million from investors including Alphabit, one of the world’s most regulated digital asset funds, and Chainlayer, an early investor and promoter of the FinTech space. Other investors include Beachhead and Autonomy. It’s an impressive rack of VC supporters, but crucially they haven’t seemed to gobble up all the available $BUMP, meaning that the token’s utility and price can grow naturally.
Bumper Finance is a DeFi price protection protocol that promises not only to protect users from asset drops, but also energise the entire DeFi market as more people will be confident to retain their assets in the knowledge that they’ve set the floor they are comfortable with. Its smooth interface, great investor backing, generous liquidity program, and overall mission means that it seems destined to give the entire crypto market the bump up it needs right now.