Earn - Open a position

In order to open a earn position using Bumper, you need to commit stablecoins to the protocol, and bond some BUMP tokens. Here are the basic steps to follow:

Open an earn position

  • Navigate to the dApp and ensure your wallet is connected

  • Select the Market you would like to open a position in

  • Ensure ‘Earn’ is selected in the new position box

  • Under Liquidity Position, decide how much of your available assets you want to deposit, or click the Max button to choose all.

  • Next, choose a risk tier. The higher the number you set, the more you are exposed to potential gains and losses. So 1.0 is lower relative risk, 5.0 is higher relative risk. See below for more info.

  • Now choose a term. This is how long your position will be open for.

  • In the summary box you will see:

    • an Estimated Yield for your position.

    • the required BUMP token bond. This is the amount of BUMP tokens you must have in your wallet which are bonded into the protocol. Your bond is returned when you exit your position.

    • the trading fee for using Bumper

    • an estimated incentive paid in BUMP tokens for using the protocol.

  • If you’re happy, and ready to proceed, you may be shown a ‘PERMIT’ button if this is your first transaction

  • If you’ve submitted a PERMIT you can then select ‘CONFIRM’ to open your web wallet and complete the transaction

  • Now approve the transaction in your web3 wallet, and then wait for it to be confirmed on the blockchain

  • Once completed, you’ll see a confirmation of your transaction pop up, and you will see the new position in your ‘Positions’ summary.

Please note that Current Yield and Current Yield Rate may be inaccurate for the first 3 days until the protocol has completed the first phase of its Yield Development Time to more accurately determine your current yield.

Deposit Limiting There are times when the protocol will need to limit deposit sizes for both Makers and Takers in order to keep pool ratios within predefined limits. This helps to ensure that premiums are fair, healthy yields are maintained and the protocol can operate most efficiently. If the deposit alert shows while trying to open a new position reduce the size of your position

Risk Tiers

Because Makers are assuming risk in return for earning yield, being able to select an acceptable level of risk relative to other Makers is a feature built into Bumper.

This is achieved by having a Maker select a Tier when opening their position. The higher the Tier chosen, the more risk they assume, but conversely the more relative yield they can earn. Risk tiers are not absolute, but are relative to other Makers, with the average risk tier being shown in the dApp. In other words, an individual Maker can see what the general level of risk all other Makers are taking before they open their position.

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