Bumper finance: the first defi volatility equalizer. Protect your ETH and BTC from price crashes

This is not your usual shitcoins, but a new defi bluechip that I am confident will make it to the top 100 in 1-2 years.

Bumper is a novel solution to the problem of crypto currency volatility. It basically protects your investment like ETH from negative price movements while you are still exposed to price increases (in contrast to a stop loss). It’s a crazy complex endeavor, but from what the team dropped in their office hours live stream they cracked the code. Simulations and back testing of the price movements of ETH and BTC in the last 4 years look great (see simulation report at the end of the text). If you want to know how it works, check their lite paper.

They recently started working with digital mob,which certainly belong to the best coders in the space. They worked for Maker Dao, Filecoin and a few other successful projects. Thing is, you can’t just hire them, they get a lot of requests every day. What they want is a portion of the tokens of what  they think is going to be the next big thing. So they are pretty confident this will work out.

There was a presale around 1 year ago, but presalers seems to have capitulated at some point because of slow development. Price is around x5 lower if I am correct. It pumped a bit in the last month, but nothing too crazy. They want to launch in August. Marketing will therefore ramp up in July. I think the narrative of price protection  is so simple everyone gets it, so it should be easy to market.

At the moment, it is really under the radar with 6-7mil MC and hardly anyone is active in their channel.

Some deep-dive extra points why bumper is revolutionary for risk hedging (in crypto and probably at some point for tradfi, there is interest from for an enterprise version)

Main advantages of bumper compared to traditional risk hedging (written for ETH, same goes for WBTC at launch and more assets in the future):

  1. Stop Loss without sacrificing upside potential: By employing Bumper to safeguard ETH holdings, investors benefit from a price protection mechanism that mitigates downside risk without impeding the asset's ability to appreciate in value during upward market movements. In contrast to a normal stop loss, with Bumper you don't get priced out when the market surges back after the price fell below floor level, which happens all too often after a stop loss got triggered.

  2. Maximising risk price efficiency: Bumper introduces a groundbreaking mechanism where premium charges are determined dynamically based on different parameters like the volatility of the asset observed during the locking period, in contrast to upfront premium charges commonly practiced in traditional options. At the core of Bumper’s design is the idea that all risks, and profits, are shared. This means that protection takers are unconcerned about whether they are paying a fair price, and protection makers do not have to compete with other makers. Bumper measures and dynamically responds to price changes and demand, shares liquidity risk among liquidity providers, and shares the cost of risk among protection buyers. With this approach, Bumper maximizes the efficiency of pricing (valuing) price risk and converting it to a stable yield. This innovation, resulting from 2.5 years of collaborative efforts with esteemed experts and professors, positions Bumper as a cost-effective alternative, typically offering a 10% lower premiums than conventional options.

3.  Ease of Use: Bumper offers a user-friendly experience, making it highly accessible and straightforward, even for non-professional traders. With Bumper, implementing risk management strategies and protecting ETH holdings requires just a few clicks, eliminating the complexity and learning curve associated with traditional option desks. This intuitive interface empowers users to secure their assets efficiently and conveniently, without the need for specialized financial expertise or extensive market knowledge.

  1. bETH Utility: Bumper enhances user utility by returning bETH, a representation of locked ETH, enabling users to unlock additional value from their locked assets and participate in a broader spectrum of decentralized finance (Defi) opportunities. bETH can be as collateral with the interesting feature of following eth's price but never falling below the chosen price floor, which gives it special properties in terms of how liquidations will work.

  2. Efficient hedging: Bumper eliminates the need for additional hedging capital by relying solely on the underlying asset, ETH, thereby removing the requirement to reserve funds for purchasing put options. This distinctive feature ensures that the original ETH holdings are protected, rather than relying on derivative products, fostering a more direct and secure hedging approach.


Basic info:









Bumper One-pager: https://www.bumper.fi/bumper-one-pager (shows use cases)

Litepaper: https://www.bumper.fi/resources/litepaper

Simulation report: https://www.bumper.fi/resources/simulation-report