Launchpool Announces Upcoming AME for Bumper, DeFi Price Protection Solution
BUMPER solves the fundamental problem of price volatility in crypto using a radically innovative DeFi protocol.
John Maynard Keynes said, “the markets can remain irrational longer than you can remain solvent.”, and for a long time, price volatility turned out to be one of the major blocks in getting people to invest in crypto assets. Even during this bull run, highly volatile currencies such as Bitcoin or Ethereum have seen its share of price crashes and corrections. Market volatility will not keep you awake at night anymore, though.
Introducing Bumper: a DeFi price protection protocol designed to answer volatile prices. BUMPER was conceived by INDX (who have been yield farming since 2017). With a DeFi protocol this sophisticated, there was only one candidate at the top of the list — Block8, the company that designed and then built Havven.
In common terms, you can think of a form of insurance mechanism that offers you protection. We’ve seen trading bots with stop/loss features work especially for centralised exchanges. Or even better, if you’ve used custodial solutions like Revolut, Paypal, and others, you may recognise certain mechanisms to try buy/sell options in case of a volatile market episode.
Where Bumper Defies All Odds
Bumper’s innovative defi protocol works in simple 6 clicks, which ensure to protect the value of your crypto assets. The Bumper dApp allows you to choose the amount and price to protect for your ETH, with more currencies rolling out in the future. The protocol then locks the ETH in your wallet, crediting a corresponding amount of Bumpered ETH (bETH). bETHs are fungible tokens that do not drop below the protected price.
The DeFi protocol is rather complex and complicated from an architecture perspective, though extremely user-friendly. To explain briefly how it works from a technical point of view, Bumper has a pool of ETH and a pool of USDC stablecoin, with two types of relationships incurred: Makers and Takers. A swap occurs, each Taker’s ETH is swapped into USDC, when it falls below the protected floor. Typically, on a DEX, this type of swap would incur TX and gas fees, and slippage. With Bumper, an internal ledger is used to keep track of the swapping of ETH in and out of USDC. Before ETH would fall below an acceptable level, Bumper opens itself to arbitrage bots to rebalance, and in events of fast or dramatic drops, the protocol rebalances on DEXs. A separate risk pool covers any realised (nominal) losses. Bumper dynamically alters any premium it charges and yields it pays out, to achieve a perpetual equilibrium between the pools.
Reasons Why LPOOLers Will Love Bumper
- Innovative DeFi protocol with mechanisms to ensure protection against losses
- ETH and USDC pools, with more options coming soon.
- Extremely efficient instrument that flatlines volatility.
- Highly incentivised USDC pool to earn a yield.
- Arbitrage and risk pool to manage dramatic drops and cover any losses.
- Great UX and UI dApp.
The $BUMP token will be coming to Launchpool for an Allocation Mining Event (AME) in a few weeks. Details TBA.
About Bumper
Bumper protects the value of your crypto using a radically innovative DeFi protocol. Set the price you want to protect and if the market crashes, your asset will never fall below that price. Importantly, if the market pumps, your asset rises too. #bumper #protectyourcrypto
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About Launchpool
Launchpool ($LPOOL) leverages communities, knowledge, expertise, contacts and capital to provide crypto projects with the best possible start to life, maximising their chances for success in this fast moving & dynamic space.
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