Research Summary
This report provides a comprehensive guide on how to use Bumper, a price protection protocol in the DeFi space. Bumper offers a mechanism to protect user assets from downside volatility, akin to setting a stop loss on a portfolio. The protocol operates with two user classes: the protection seekers and the earners. The report also details how to interact with the Bumper prototype, including how to protect assets, deposit as an earner, claim, renew, and close positions.
Key Takeaways
Understanding Bumper’s Functionality
- Bumper as a Price Protection Protocol: Bumper is designed to protect user assets from downside volatility, similar to setting a stop loss on a portfolio. This process is referred to as “Bumpering your asset”.
- Two User Classes: Bumper operates with two types of users – protection seekers who protect their assets, and earners who deposit liquidity into the protocol to earn yields.
- Incentive Package: Bumper has announced a $250k incentive package for early users who perform any of the user actions on the protocol, such as taking protection positions or earner positions.
Interacting with the Bumper Prototype
- Protecting Assets: Users can protect their assets by selecting the asset they wish to protect, choosing the amount to protect, selecting the protection rate, and choosing the length of time for protection.
- Depositing as an Earner: Earners can deposit liquidity into the protocol by selecting the asset they wish to deposit, choosing the amount to deposit, selecting the market they are providing liquidity for, and choosing their risk exposure.
- Claiming, Renewing, and Closing Positions: Users can claim, renew, or close their positions based on the price of their protected asset and their chosen floor.
Actionable Insights
- Explore Bumper’s Offerings: Given Bumper’s unique value proposition in the DeFi space, users interested in protecting their assets from downside volatility or earning yields by depositing liquidity should explore the protocol’s offerings.
- Consider Early Adoption: With Bumper’s $250k incentive package for early users, there is potential for users to benefit from early adoption of the protocol.
- Understand the Process: Before interacting with the Bumper prototype, users should familiarize themselves with the process of protecting assets, depositing as an earner, and claiming, renewing, and closing positions.
