BUMP is the native token of the Bumper ecosystem, acting as both as a utility and governance token.
In order to open either a protection or an earning position in the Bumper protocol, you are required to hold unstaked BUMP tokens in your wallet. These are bonded when you open a position, meaning they are committed to the protocol and cannot be transferred whilst bonded. Bonded BUMP tokens are returned to your wallet when your position is closed.
The exact amount of BUMP required is dependent on the size of the position you wish to open, and bonding occurs automatically when a position is opened.
BUMP token holders are able to participate in the Bumper DAO by staking their tokens into the protocol. In return, stakers receive vBUMP, which represents their voting power, on a 1:1 basis and may be withdrawn at anytime. Stakers can optionally choose to lock their BUMP tokens for up to 1 year to receive bonus vBUMP voting power. Locked BUMP cannot be withdrawn until the locking period has expired. For more information on staking BUMP tokens in the DAO, see the ‘How to stake BUMP’ guide here.