Bumper BUMPPrice $ 0.00291

BUMPER is a DeFi price protection protocol built on Ethereum, created by founders of INDX and the team at Block8 (who previously designed Havven). BUMPER protects the price of crypto assets (ETH at launch) by providing a decentralized software facility for ‘Takers’ of protection to operate diametrically to ‘Makers’ of liquidity. Protected positions incur a floating daily premium, nominally 3% p.a, that is used to incentivize stablecoin depositors into a liquidity Reserve.

BUMPER protocol is a pure, decentralized 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 utilizing first-order dynamics, such as Premium / Yield curves / BUMP distributions and then by opening up to arbitrage and, if necessary, DEXs. A separate prudential capital reserve acts to backstop any realized deficit.