At its heart, Bumper is a revolutionary risk management tool which protects the value of crypto assets from downside volatility and market crashes. Although Bumper shares some similarities with Stop Losses, Options Desk and insurance policies, there are significant differences in Bumper’s architecture, functionality and approach to managing risk.
Bumper's core function is a pooled risk market which leverages Artificial Intelligence (AI) to optimise efficiency. On one side, users hedge crypto assets by choosing a term and locking in a floor price. Through intelligent rebalancing mechanisms the protocol ensures the chosen minimum value is preserved at the end of the term. On the other side of the market, users deposit stablecoin liquidity to balance the protocol and earn a yield derived from streamia (dynamic premia) paid by protection takers.
Simplified illustration of the Bumper protocol.
This opens up a range of opportunities for users to gain protection from downside price movement, beat the market through accumulation trading strategies and earning stablecoin yield on their deposits.
Bumper's AI integration strategy revolves around three key AI tech stacks, each designed to address specific challenges and augment the protocol's capabilities:
Bumper's AI engineers are training a state-of-the-art Large Language Model (LLM) with a staggering 70 billion parameters using extensive financial data, including crypto asset price datasets.
Through techniques such as Reinforcement Learning from Human Feedback (RLHF) and Retrieval Augmented Generation (RAG), Bumper aims to enhance the accuracy and efficiency of its price prediction algorithms, laying the groundwork for real-time market insights and proactive decision-making.
By leveraging a pre-trained 8 billion parameter Large Language Model (LLM), Bumper can analyse vast amounts of financial Natural Language Processing (NLP) data to gauge market sentiment with unparalleled granularity.
Through fine-tuning and advanced NLP techniques, Bumper gains valuable insights into speculator disposition, allowing for a deeper understanding of market dynamics and trends.
Bumper's AI engineers have pioneered a novel approach to technical analysis by training a Large Language And Vision Assistant (LLAVA).
This multimodal model combines vision-based analysis of price plot images with NLP-driven interpretation of technical indicators, enabling Bumper to make informed decisions based on historical price data and market trends.
Analysis using Bumper’s proprietary Agent-Based Modelling (ABM) forecasts an economic improvement of 5-25% in terms of the protocol’s efficiency to balance the trilemma between Lower Premiums, Higher Yields and Solvency Robustness.
Our Agent-Based Model (ABM) was used in conjunction with AI techniques to create more complex and adaptive simulations. Agents in the ABM system used machine learning algorithms to learn and adapt their behaviour based on past actions, and market changes. The integration of ABM with AI methods led to more sophisticated modelling and simulation capabilities for Bumper.
AI is used throughout the code and smart contract development to iteratively work through code optimisation and protocol performance.
Of most significance Bumper uses a pre-trained Large Language Model to ingest vast amounts of financial text data and broadly categorise sentiment. This critical tool uses advanced classification techniques to identify distinct financial vocabulary. Equipped with attention mechanisms and transformer-based structures, the LLM is able to discern market sentiment and investor behaviour and signal future market trends.
These signals are then fed into premium calculations alongside Price Risk Factor (PRF), Liquidity Risk Factor (LRF)and Risk Rating of Positions (RRP). This frontier tech optimises Bumper’s innovative streamia model and is world-first in connecting LLM technology with smart contracts to offer price protection. Since it has become such a narrative in 2024, we’ve doubled down on efforts to become the first AI-powered Risk Management platform in DeFi.
Learn how to safeguard your crypto assets with Bumper's protection positions. This guide details how to use the Bumper dApp to set a floor price for your crypto, and protect your tokens from downside price movements.
A concise guide on how to earn yield on your stablecoins by providing liquidity to Bumper. How to open, close and renew your position.
Explore the inner workings of Bumper DeFi in this guide. Learn about protocol mechanics, pooling, and the behind-the-scenes dynamics that power asset protection and yield generation. Elevate your understanding and navigate the crypto landscape confidently with Bumper
This guide explains how to participate in Bumper's DAO and stake tokens to gain vBUMP voting power, the pre-requisite for voting on governance proposals.
To participate in Bumper’s LSTfi wstETH-USDT market, traders can either deposit Lido wrapped staked ETH on Arbitrum into the protocol, or buy wstETH on the market to essentially trade ETH market volatility.
This guide delves into the Bumper premium mechanism. Understand how Bumper assesses risk and calculates premiums to optimise positions and maximise revenue.
Bumper’s first priority is an unwavering commitment to providing a safe, transparent, and innovative platform for crypto enthusiasts. Experience the future of crypto risk management with confidence and peace of mind.
We have engaged with some of the best teams in the world to work with us to create the most secure and robust smart contracts, and we’re meticulous about ensuring the resilience of our contracts.
But that’s not all. We’ve hired leading smart contract auditors to perform rigorous security reviews on Bumper’s smart contracts to ensure the safety of users funds whilst using the protocol.
Bumper's commitment to security extends beyond smart contracts. We implement comprehensive full-stack security measures that encompass every aspect of our platform.
From front-end interfaces to back-end databases Bumper is committed to providing a seamless and secure user experience.
Bumper prioritizes economic security in decentralized finance, excelling in all market conditions, including bear markets and 'Black Swan' events.
Extensive multi-year simulations, based on trusted third-party historical price data, confirm Bumper's sustained solvency and resilience in challenging scenarios. Ongoing real-time simulations enhance our understanding of the dynamic market landscape.
Master Volatility .:. Optimise Returns
