Token Utility

Bumper presents a binding of token value to market value by allowing market participants to acquire and deposit (“Bond”) in the form of BUMP for as long as the participant holds an active position. With a fixed supply of tokens available, the market value of a token will naturally become a function of market demand. In this way, the value of the token becomes a proxy for the value of the utility of the market, and provides us with convenient means to measure this value.

In other areas, the BUMP token can be used to support the network in a Safety Module that offers token liquidation drawdown to subsidise an extreme debt scenario. Note that this has not been encountered to date in all simulations dated back over four years.

The token also acts as incentive for both primary and second-order network functions designed to maintain balance and health of the protocol.

Finally, BUMP is fundamentally a governance token that allows a token holder to vote in key proposals that affect the Bumper protocol, and by proxy, token holders.