Use cases & strategies

Bumper offers a unique crypto price protection mechanism that can be utilized in various ways to maximize gains and minimize losses. Here are some strategies that users can adopt:

Timing Market Dips

Bumper can be used to protect against the uncertainty of timing market dips. If you're unsure about whether your newly purchased crypto will bounce off support or crash, Bumper can provide a safety net. If your token takes off, the premium is likely to be cost-efficient compared to buying a Put Option.

Protecting Market Highs

When approaching all-time-high (ATH) territory, it's hard to predict where the top is. Bumper can lock in profits should a correction occur, and you won't miss out on further gains, unlike if you'd taken profit or used a trailing stop.

Hodling Your Crypto

Bumper is beneficial for those who hodl their crypto rather than engaging in trading. By setting short-term protection, you can increase your position or make yield if the price goes down below your floor. Then, simply start your protection again.

Mitigating Liquidation Risk

Bumper can be used to protect you when taking out a DeFi loan if the platform accepts bumpered assets as collateral. This mitigates against liquidation should the market crash, as your bumpered asset always has a minimum floor value.

You can theoretically even borrow stablecoins using your bumpered asset as collateral and then deposit your newly acquired stablecoins into Bumper, earning a yield too.

Protection for New Crypto Users

Bumper is an excellent tool for new crypto users. It protects the value of your wallet when taking your first steps into cryptocurrencies, providing peace of mind while learning more about the crypto-sphere.

Safeguarding Large Investments

For those with large crypto holdings, Bumper is a way to hedge against bear markets and flash crashes. It can help protect large amounts of money from evaporating on a day-to-day basis.

Regular Crypto Purchases

Bumper can be used to protect regular, modest crypto purchases, turning your crypto holdings into a kind of savings vault. It helps grow the value of your wallet either in terms of increasing dollar value or increasing the amount of sats you're stacking.

Targeting Specific Values

Bumper can be used to target a specific value at a discreet point in time in the future. This reduces the need to buy more crypto assets from your own money if the market price of your crypto goes down during the waiting period.

Alternative Crypto Hedging

Companies that have a fiduciary responsibility to employ risk-reduction strategies can use Bumper as a tool to hedge risk in the crypto world. It can be a useful option for institutional and family offices that need to hedge against volatility.

Remember, whichever strategy you adopt, you will need the BUMP token to make it a reality. Bumper provides a simple, price-efficient, and provably fair way to hedge against crypto volatility.

Last updated