Everyone knows the most rewarding experiences come when you put some effort in. Bumper is no different. For the reward of being able to engage God-Mode on your Crypto, their Liquidity Provision Program seems far too easy. Like playing Galaga at half speed.
By now, you should understand how much of a game changer Bumper is going to be. Not just within DeFi but also in the broader Crypto and financial markets. This is the birth of a new way to protect the price of your crypto assets, so kiss goodbye to volatility. For a quick overview, checkout our founders talking about the future of Bumper. They’ll get you excited at the prospect of Bumper’s role in this global shift from TradFi to DeFi.
Bumper have spent many, many hours planning, calculating and modelling a Liquidity Provision Program that really works. By being an early supporter through the Program you’re helping to bootstrap the protocol, getting it ready to deploy God-Mode on the Crypto-sphere. And because they want to reward their long-term supporters, they’re providing impressive ROIs and a bucket load of BUMP to go along with it.
Ready Player One
From July 14th users will be able to deposit USDC into the protocol and yield-farm BUMP tokens. While you’re depositing you’ll also be given the chance to buy some BUMP at Private Sale. We’ll get to that later. First, let’s explain the process and rewards for farming BUMP during the LP Program.
The Program will run for 12 weeks, and you’ll be able to deposit at any time over that period in the Bumper Dapp via our website. For each dollar deposited you’ll earn BUMP tokens. And the earlier you get in, the more BUMP you’ll earn and the higher your yield.
How much will you actually earn? Well that depends. The token price and the TVL are intrinsically linked, so the higher the TVL, the higher the token price will go. The sky’s the limit. But realistically Bumper are targeting $150m of TVL. At this TVL they’re expecting the token to reach $1.80 by the end of the program. And this will peg their Public Sale start price at $2.40. If they reach this target, and users made their deposits on Day 1, that deposit will have earned a healthy haul of BUMP tokens bringing in a yield of 100% APY. That’s passive yield just for lending USDC to the protocol.
If users deposit at any point after the first deposit has been made they’ll earn a lower yield and less BUMP. So the key is to get in early, to get the best farming yield.
The only stipulation at this point is that users will need to keep your USDC locked up until October 14. After this date they’ll be able to reclaim the deposit and keep the earned BUMP. But the smart option is going to be to leave it in and earn more BUMP. Since this is only USDC provision, there is no risk of impermanent loss and the smart contract is fully audited.
Buy the BUMP token
Now here’s where it gets exciting, and where Bumper are really showing their commitment to the community.
When users deposit USDC, they’ll be given the opportunity to buy BUMP by swapping up to 20% of deposited USDC at a special price. What they’re calling their LP Private Sale. Because users have to be a liquidity provider to get access to buy.
If users deposit $100,000 USDC they’ll get the option to buy up to $20,000 worth of BUMP at Private Sale price. If $5,000 USDC is deposited, users will be able to buy $1,000 worth of BUMP. This is optional, so there’s no minimum or maximum, but if BUMP isn’t bought when deposits are made, users may miss out on the chance to buy until the Public Sale. And at that point you’ll be paying a lot more for the BUMP token.
By taking this extra step to buy the BUMP token early buyers will be looking at a 315% APY.
On Day 1 of the LP Program the price of the token will be $0.60. As already mentioned, the token price is linked to TVL, so when the TVL goes up so does the token price. Considering a $2.40 token price at our target TVL of $150m this will mean if users get in at the start of the Program as a Maker and Buyer your APY will be over 300%. Impressive huh?
If the pool hits a TVL of $200m the token price is going to be pushed up even higher and yields will exceed this.
At the end of the LP Program if there are still tokens remaining Bumper are going to open up a Pre-Sale. In this Pre-Sale users will be able to swap 100% of any additional USDC deposits for tokens. This Pre-Sale will be open to anyone.
If users have already deposited or bought, this is also a great opportunity to bag some more BUMP as the price will be 33% lower than it will be publicly listed at. But remember, the Pre-Sale will only happen if there’s still a pot of tokens.
The key with all of this is to get in early, get BUMP and tell others to get involved from July 14.
Follow Bumper on Twitter to stay up to date with all their latest developments https://twitter.com/bumperfinance, or speak to the team directly on Telegram https://t.me/bumperfinance
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.