One liquidity pool, multiple incomes
We’re all familiar with Yield Farming. It’s a staple of DeFi, remaining among the fastest-growing segments. You stake, you yield. Your tokens go into a deterministic algorithm that interfaces with other deterministic algorithms, lending out your capital firepower for their purposes while they compensate you in the native token you’re helping them create. The inertia of the capital is negligible, and so there’s a constant stream of loud voices from new projects, all vying for a part of the near hyperventilating hyper-liquid liquidity Yield Farming party. Typically, the liquidity that goes into Yield Farming means minting new deflationary tokens, but ‘lending’ them out to yet other protocols via aggregators in order to earn high returns has increased in popularity over the past year, attracting savvy investors who are drawn to the high passive income.
While the COMP token is generally attributed as the first token to kickstart yield farming’s boom, yield farming has grown over the past year to include hundreds of new DeFi projects that have emerged to claim their plot in this financial ecosystem.
The concept of having collateral locked into a protocol to earn ‘significant’ interest is something that is unheard of in traditional finance. The average traditional financial user is limited to low-interest rates on their savings and investments that usually don’t even hit the 1% mark.
Despite the boom, there are a number of issues that keep yield farming at a distance from non-crypto natives and even those who are relatively well versed in crypto. Perhaps the most important thing to bear in mind is the misconception that all yield farming is time-consuming and complex, and that, in order to gain the optimum yield, a farmer must devote significant time and effort moving between strategies. Separately, some Defi projects have contributed to the distaste for some by being sloppy with unaudited code which is vulnerable to hacks, or the occasional “rugpull” (i.e. theft). There’s also the all-too-present risk of impermanent loss.
Needless to say, not all liquidity pools are created equal. Bumper has managed to create a liquidity pool that generates a risk-free yield (there is no risk of impermanent loss as LP’s do not deposit pairs) and is anticipated to attract liquidity from other protocols such as Yearn, Curve and Barnbridge. It should be emphasised that the Bumper ecosystem is much more than a robust protection against volatility, and the benefits of being a liquidity provider are multiple.
Earning through Bumper can be achieved in a number of ways; initially through the temporary Liquidity Provision Programme (now live), and later as a Liquidity Provider in the full release due later this year.
For the LPP, Liquidity Providers use the Bumper dApp to send USDC to the protocol to receive an instant yield. The protocol sends the user a corresponding amount of Bumpered USDC (bUSDC). This token is pegged to USDC, but the value of the yield will grow over time as more LP’s make contributions, which are locked up until October 14th 2021. At that point you may have the opportunity to leave your deposit in the protocol and continue earning with a potential LPP 2.0, or withdraw and keep your locked BUMP tokens, ready for when they become tradable.
Users who choose to both farm and buy BUMP will earn the highest possible yield if they deposit USDC from day one as more deposits are made. If they convert up to 20% of their USDC deposit directly to BUMP they can earn arn the highest achievable yield of 315% APR*.
Although there are numerous DeFi projects that offer rewards in exchange for providing liquidity to their protocol, Bumper is a price protection protocol that allows you to earn money in a number of different ways. And apart from being rewarded with native BUMP tokens, and/or providing liquidity and receiving the very same ‘significant’ interest in comparable DeFi protocols, you also have the option to send the tokens you own to other third-party protocols once the full system is live.
With an innovative DeFi protocol that offers no risk of impermanent loss, and several ways to earn on liquidity provided, Bumper not only protects users from any downside, but actively offers you multiple rewards for supporting the project.
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.
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