TL;DR: We’re issuing 5,000 BUMP per day in staking rewards, starting on Dec 16. Saunter on over to app.bumper.fi to get your BUMP on.
The Stakening
Supporting the Bumper project via Staking has been a long-requested feature from many in the community. Originally, Staking wasn’t due to feature until Release v1.1, after the main protocol launch, but we’ve brought it forward as a stand-alone module which will be upgraded in following releases.
Follow progress with our new Roadmap
The point of Bumper’s Staking module is to provide BUMP holders a means to support the protocol without participating as a Maker or a Taker in v1.0 and beyond. Stakers will earn a variable yield, paid in BUMP, by locking some of their BUMP into the module.
Definition: Staker
A user who stakes BUMP to the protocol. Staked tokens are at risk of liquidation up to a predefined maximum percentage if certain predefined and community-endorsed economic or operational triggers are met. Stakes are locked for a period of time and provide a means for token holders to support the protocol by staking BUMP and earning a yield.
For our Quickening release, there will not be any stake call triggers that will be set [Roadmap: Conscription]. All that staked BUMP does for now is earn a yield. In BUMP. Simples. But, don’t get too comfy…
With the Falkor release in Q1 2022, the Staking module will be upgraded to serve as a simple tertiary prudential reserve (“safety module”) for the protocol, as well as be modified to issue rewards, purely as a function of protocol health [Roadmap: Staking v2]. We’ll go into greater depth on this in a future post.
Alpha Staking
The staking contract will be deployed to the Ethereum mainnet by the 16th of December. Once live, the functionality becomes available via our dapp, or via the Bumper smart contracts directly if you’re technically inclined.
For now, the staking contract is configured to issue 5,000 BUMP per day in staking rewards. The important thing to note here is that it will be issued proportionally among the stakers, according to how many BUMP are staked, and what type of stake is chosen. Stakers will find a couple of staking options over on app.bumper.fi: Fixed and Flexible.
- Fixed Staking
A Fixed Term Stake of BUMP locks tokens into the protocol for a fixed time period. Fairly self-explanatory really. The interesting bit is that you get a bonus for choosing fixed, and the longer the term, the bigger the bonus.
Currently, we’ve set the available Term options to be 30, 60 and 90 days. Staking rewards accumulate throughout the term and are claimable at the end of the fixed period. At the end of the Term, the original stake, plus the accumulated rewards, become claimable.
Fixed Staking earns a multiplier on your earnings relative to Flexible staking, according to your chosen term:
30 days: 1.5x
60 days: 2.75x
90 days: 6.0x
Come the end of the term, you can go again (if still available) with all or some of your tokens, or, you can beat a hasty retreat. If you’re a ‘30-dayer’ by that stage, or very soon after, you’re going to be able to put those tokens to good use and Bumper your ETH (and possibly also wrapped BTC).
2. Flexible Staking
Here be the weaker hands. Staking under the Flexible option means you can jump ship whenever you feel like a dip in the ocean. However, it’s a long way down, and there’s a cooldown after you press the eject button.
Once you bug out, the 10-day cooldown period begins. Once the cooldown is over, you’ll have two (2) days to ‘unstake’. If we don’t hear from you, we’ll assume you want to go back into the flexible staking pool and re-stake your tokens, and that simply restarts your position to accumulate stake rewards again.
REWARD ILLUSTRATION
Say you had two people staking:
Person A: 20 BUMP, Flexible
Person B: 5 BUMP, Fixed 3 months
Person A has 4 times what Person B has in BUMP. But, Person B gets a 6x multiplier, so rewards are issued as if they had 6x their stake (i.e. 6x5 = 30)
Person A earns ( 20 / [20 + 6 x 5] ) x 5,000 = 2,000
and
Person B earns ( [ 6 x 5] / [20 + 6 x 5] ) x 5,000 = 3,000
Bumper Booty
Similar to other protocols, you can claim your loot (rewards) at any time (except if you’re “staking” via the Tokensoft Sale, in which case, you’ll get your treasure at the end as this uses a different system), and sail to Havana, where the sun is warm, and so is the… comradeship. Remember too that the 5,000 BUMP per day are shared among all stakers, and Fixed Stakers Buccaneers get a significant boost over the Flexible Plan Mutineers.
Also, the 5,000 per day stake reward rate won’t be around forever. Expect this to be trimmed on, or before, protocol launch.
About Bumper
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.
Stay Connected to the Bumper Project:
Join our Telegram — https://t.me/bumperfinance
Follow us on Twitter — https://www.twitter.com/bumperfinance
Join our Discord — https://discord.gg/YyzRws4Ujd
Visit our Website — https://bumper.fi
