Bumper Investment

Today we are proud to announce that we invested in Bumper from Indx Capital. After talking to the team behind Bumper and learning more about the technology, we realized the vast potential for growth and adoption in what is still a young space. This project fully aligns with our investment strategy at ChainLayer, and we are excited about the future of the Bumper protocol.

Bumper is a DeFi price protection protocol built on Ethereum, created by INDX and the company that designed Havven (which independently evolved into Synthetix).

Bumper protects the price of crypto assets (ETH at launch) by providing a decentralised 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 incentivise stablecoin depositors into a risk-free liquidity Reserve.

The Bumper protocol is a pure, decentralised 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 utilising first order dynamics, such as Premium/ Yield curves/ BUMP distributions and then by opening up to arbitrageur bots and if necessary DEX’s. A separate risk pool, attracting a higher yield tranche, acts to backstop any realized losses caused by sharp volatility.
Conclusively, these redundancy measures make Bumper a highly productive tool to achieve efficient risk transfer pricing via liability pooling.

You can read more about Bumper at https://indx.capital