How Bumper Is Planning To Reward Our Early Adopters
Following an uncertain time for the crypto markets, the issue of volatility has once again been brought to the fore of mainstream media. With Bitcoin plunging to 14-week lows, and a mass sell-off of major cryptocurrencies, investors new and old have been forced to confront the reality of Bitcoin’s extreme volatility.
As retail investors and institutions react to the recent events, either selling off or buying the dip, some may find themselves tempted by the seemingly stable traditional financial sector. Despite the issue of volatility, the cryptocurrency market has demonstrated its resilience time and time again. By using stablecoins, investors are able to avoid the downwards volatility of crypto, and sit pretty, all the while earning interest on their stablecoins with Bumper — one of the most anticipated DeFi launches of 2021.
While the cryptocurrency space keeps a close eye on the markets, Bumper has been busy building a solution in which investors are able to reap all the rewards of cryptocurrency, whilst minimising risk exposure. In the form of a decentralized insurance protocol that enables liquidity providers to earn considerably more interest than a bank provides.
The problematic issue of volatility has led Bumper to create a solution in the form of a stringent price protection protocol which allows you to protect your investments through an easy-to-use DeFi protocol which effectively converts a volatile asset to a stablecoin while enabling users to reap all the benefits of price surge.
Aside from offering innovative protection for investors, Bumper’s liquidity providers who stake USDC into Bumper’s stablecoin reserve pool will receive a number of benefits. Bumper has not only found a way around the problem of volatility, but also makes cryptocurrency work for you.
Getting paid to be a liquidity provider
Bumper is unique in its approach, but similar to an aggregated ledger that assesses the position in each pool and maintains protection by balancing various different ratios. Liquidity providers are crucial to Bumper’s protection mechanisms as they are needed to fill the liquidity pool and counterbalance “takers” wishing to protect their assets. The most obvious benefit of being an LP is that you will get paid to do so.
As a liquidity provider, or a “Maker”, you will receive risk-free interest, in the form of a portion of the premiums paid by policyholders. By supporting Bumper and depositing USDC into the protocol from July 14th, you can yield-farm BUMP tokens and gain exclusive access to our Private Sale to earn over 300% APR. Net proceeds from token sales will be sent directly to the Stablecoin and Prudential Capital Reserves to bootstrap the Bumper Protocol.
Earning yield on Stablecoin
From 14th July liquidity providers will be able to deposit USDC and also be rewarded with the ability to purchase BUMP tokens at Bumper’s Private Sale price, separate to yield earned and bringing the potential APR for early farmers and buyers to over 300%+.
Bumper believes in rewarding early supporters of the protocol, and as such the first Liquidity Providers (LPs) to deposit USDC and Swap 20% to buy BUMP receive the best achievable yield of 315% APR. Additionally, the first LPs to swap USDC for BUMP receive the Private-Sale price of $0.60+. From October 7th — 14th 100% of USDC deposited by LPs can be swapped at the BUMP Pre-Sale price $1.80+
We’re offering a very generous $22m+ bonus $BUMP tokens in total, which will be distributed to our LPs. There will be 300%+ APR for the first BUMP Farmer & Private Sale Buyer. There will be 185% APR mid-TVL for BUMP Farmers & Private Sale Buyers. USDC which has been deposited will be locked-up until end of Bootstrap phase on Oct 14th, at which point LPs can reclaim 100% of their USDC or leave it in and continue earning yield.
How does it work?
The way LPs are able to earn yield on stablecoin is by sending USDC to the protocol via the Bumper dApp to receive a yield. One of the many attractive features of the Bumper liquidity pools is that yield earned is completely risk free.
Unlike the traditional finance sector that offers negligible interest rates, Bumper allows you to earn on the liquidity you provide, through the premiums paid out by those taking protection. This sophisticated system gives you the choice to invest, earn, and if you choose to reinvest.