Tallinn, Estonia, 14 Dec 2021, ZEXPRWIRE, Bumper has announced the upcoming launch of their innovative price protection protocol that seeks to allay fears of inherent volatility in the crypto market by allowing users to protect the price of their assets while letting them remain viable in on-chain DeFi economies. It allows users a chance to hedge against risk in their portfolio without having to liquidate the underlying asset or leave it on an order book, increasing the capital efficiency and market maturity in the DeFi space.
Bumper hopes its protocol will usher in an era of underwritten DeFi financial products that are fully on-chain and collateralized by the crypto community as a whole. Users paying a small premium will lock in a price floor for that asset which will be sent to the protocol, and the user is then furnished with a ‘bumpered’ asset. This asset, the first offered being bETH, is fully composable and can be put to work in the wider ERC-20 ecosystem. This means that users who choose to bump their assets can keep them decentralised, keep earning yield, and remain capital efficient while guarding against portfolio loss should the worst occur.
To build out the DAO functionality of the community and leverage the blockchain to produce a community-driven asset, Bumper has also partnered with milestoneBased, to use their tools to help $BUMP token holders have their say in the direction of the protocol.
$BUMP must be staked in order to take out protection for an asset, and must also be staked in order to gain yield from staked $USDC that is used to capitalise this protection. Bumper aims to bring both makers and takers of protection into its community and achieve its goal of keeping assets protected, on-chain, and yield-bearing.
Price protection is novel in the DeFi space, and Bumper has stolen a march on the competition by being one of the first price protection protocols to announce its intentions. After the public sale, trading will begin on the token, and the DeFi community can have its say on where it values Bumper’s approach to reducing volatility in the crypto space, and its ability to forge a community of underwriters that can hedge risk for institutions and individuals and breathe new confidence into the crypto market – in spite of the headwinds ahead.