How to Make the Most of Bumper Finance: Explainer Guide.

August 24, 2023

In conclusion

If DeFi were a big puzzle, Bumper would be a significant piece towards completing it. Moreover, if you are already acquainted with Bumper’s value proposition through our previous article, you would likely agree that for Bumper, it’s just a matter of time until the entire crypto community becomes familiar with the protocol's offerings, rather than a question of whether they will ever come into the spotlight.

Bumper is a price protection protocol that protects user assets from downside volatility akin to setting a stop loss on your portfolio through a process known as “Bumpering your asset”. 

Bumper functions with two user classes; the protection seeker and the earners. While those seeking protection carry out a user journey that involves protecting their asset, the earner deposits liquidity into the protocol to earn yields. 

What’s more exciting about this protocol is that they’ve just announced a $250k incentive package for early users who perform any of the aforementioned user actions on the protocol (Taking protection positions or earner positions). 

For you to access the incentive, it’s important that you become familiar with the practical steps to Bumpering your assets on Bumper as well as providing liquidity as an earner. Thankfully, we’ve laid it all out in the next few paragraphs of this guide. 

How to Bumper your asset/Earn yields on Bumper: 

In this article, we’ll cover the basics of how to interact with the prototype (Bumper), through the following: 

  • Navigating the homepage 
  • Check history
  • How to Bumper your asset 
  • How to deposit as an earner
  • How to claim 
  • Renewing a protected position 
  • Closing a position
  • How to withdraw from an earn position
  • How to renew the term of an earn position 

Navigating the Homepage: 

The Bumper protocol stands out in terms of theme choice, using a pixelated interface. 

N/B: This is a prototype/testnet version of the protocol. 

  • Firstly, Connect your wallet as seen below and select the preferred network (Ethereum). 
  • When you are connected, as seen below, you’ll be able to view the following on the page: 
  • Protect and Earn buttons
  • Total assets deposited on the protocol and both the ones protected and unprotected. 
  • You will also be able to view your portfolio balance as well as your current positions. 
  • Connect wallet 
  • Connect using any acceptable wallet provider (MetaMask) 
  • Action buttons:  Protect & Earn 
  • View Protocol data and your current positions 
  • Scroll down to see the price of the “$BUMP” token as well as to buy the token. 
  • The BUMP token is the native token of Bumper protocol

Checking History 

This section displays a history of your transactions either as an earner or protection taker on the Bumper protocol. 

  • On the home page, click on “History tab” 
  • You can choose to download a copy of your history by clicking on the download button. 

How to Bumper your asset (Take protection) 

Bumpering an asset is equivalent to hedging against downside volatility. Essentially, when a user takes a protection position, what they’ve done is save the value of that asset if the market crashes, while being able to benefit from an upside should the market move in a positive direction. 

To do this: 

  • Click on the “Protect” button besides the “earn” button, after which you’ll also need to click on “protect” as shown in the second image below
  • You’ll be redirected to the protect page
  • Select the asset you wish to protect. For now, only ETH is available for protection. 
  • Choose the amount you wish to protect by either imputing the figure directly or selecting the percentage or clicking the “Max” button if you intend to protect the maximum amount of the choice asset. 
  • Proceed to select the protection rate which is the level of your protection in relation to the asset price. 
  • The next step is to choose the length of time that you intend to protect the asset for. Click on any of the options. 
  • Agree to the terms and conditions by clicking on the unmarked button and then proceed to confirm. 
  • Confirm the transaction in your wallet. 
  • To view the position, go back to your homepage and click on “Positions” 
  • To track your protected asset position, you can decide to add the position directly to your calendar or set an export alert by clicking on the buttons as seen below. 

How to earn yield on Bumper by making a deposit: 

  • Click on the “Earn” button adjacent to the “Protect” button on the homepage after which you also have to click on the “Earn” button below as shown in the image 
  • You’ll be redirected to the “earn” page
  • Proceed to select the asset you wish to deposit, in this case $USDC
  • Choose the amount you wish to deposit by either imputing the figure directly or selecting the percentage or clicking the “Max” button if you intend to deposit the maximum amount of the choice asset.
  • The next step is to select the market you are providing liquidity support for (In this case, ETH) 
  • Proceed to click on the options given for earning period between 30-150 days 
  • Proceed to select your risk exposure by dragging the toggle or clicking up or down the identified toggle below. 
  • Proceed to click on Next to view the breakdown of your deposit 
  • Proceed to accept terms and conditions by clicking on the unmarked button 
  • Click on the Confirm button 
  • Confirm the transaction in the wallet and you would’ve successfully deposited your USDC to the ETH market on Bumper to earn yields. 

How to renew or claim an open protection position 

Protected positions can be renewed as opposed to being closed or claimed. 

To renew protection: 

  • Having opened the positions page, Click on “Renew term” on any of the opened positions and you’ll be redirected to the renew protection page 
  • You can only renew your protection if the position has expired
  • Proceed to set a new protection floor and term for the position 
  • Review the details of the claim 
  • Accept the terms and conditions by clicking on the unmarked button.
  • Proceed to click on confirm and approve the transaction in your wallet. 
  • Once successful, your position will be renewed for the preset term. 

How to claim: 

A claim is possible when the price of your protected asset is below your chosen floor

  • Still on the “positions” page, to the right,  click on the “Claim” button
  • You’ll get redirected to claim page where you have to confirm the transaction as seen below 
  • Review the details of the claim 
  • Accept the terms and conditions by clicking on the unmarked button. 
  • Proceed to click on confirm and approve the transaction in your wallet. 
  • Once done, your protected tokens will remain in the protocol while the USDC value of your tokens will be credited to your wallet 
  • Click on “Done” to exit back to the home page 

How to close a position

A position is available to be closed when the price of your protected asset is equal to or above your selected floor

  • Click on the “protect” button on the homepage 
  • Proceed to click on the “Positions” button below displaying a number of positions available as seen below 
  • Once clicked, you’ll be redirected to the positions page where you can see the number of protected positions available
  • Click on the position you wish to close by clicking on the “close” button 
  • You’ll be redirected to the confirm page 
  • Review the details of the closure 
  • Accept the terms and conditions by clicking on the unmarked button. 
  • Proceed to click on confirm 
  • You also need to confirm/approve the closure via your wallet

How to withdraw from an earn position

Depositors can withdraw their deposited tokens, bond, and earned yields. 

  • Click on the “Earn” button on the homepage 
  • Proceed to click on the “Positions” button below displaying a number of positions available as seen below 
  • Once clicked, you’ll be redirected to the positions page where you can see the number of earn positions available
  • Click on any position available for withdrawal by clicking on the “withdraw” button 
  • You’ll be redirected to the confirm page 
  • Review the details of the withdrawal 
  • Accept the terms and conditions by clicking on the unmarked button. 
  • Proceed to click on confirm 
  • You also need to confirm/approve the withdrawal via your wallet 
  • Once done, the asset will be withdrawn to your wallet and your balance, updated.  

How to renew the term of an earn position

  • To renew the term of an earn position, click on the “earn” button on the homepage
  • Proceed to click on the “Positions” button below displaying a number of positions available as seen below
  • Once clicked, you’ll be redirected to the positions page where you can see the number of earn positions available
  • Click on any position available for renewal by clicking on the “renew term” button 
  • You’ll be redirected to the confirm renewal page 
  • Review the details of the renewal 
  • Accept the terms and conditions by clicking on the unmarked button. 
  • Proceed to click on confirm 

Closing thoughts: 

The above instructions give a preview of how Bumper would look and function for the two groups of users i.e. protection takers and earners depositing capital to earn yields. 

Bumper offers a much-needed safety net to traverse DeFi.  Will you be Bumpering your assets to hedge against downside volatility when Bumper is officially live? One thing is sure, I will be giving it a try.

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