Bumper Office Hours - 18 April 2024 - Revelo Intel

Bumper Office Hours – 18 April 2024

In this episode of Bumper which took place on April 18, 2024, Jason, Sam, and Garreth discuss Bumper, Bitcoin halving, premium analysis, AI integration, protocol updates, and more! Read our notes below to learn more.


Jason (Host) – CMO at Bumper

Sam (Host) – CTO at Bumper

Garreth (Host) – Co-founder at Bumper

Bumper Finance – a protocol that protects the value of your crypto using a radically innovative method

Bitcoin Halving, Premium Analysis, and Platform Updates

  • Jason anticipates an increase in trading volume due to the Bitcoin halving.
  • Sam explains the analysis conducted to explore differences in premiums between the Bitcoin and Ethereum markets, addressing community observations about discrepancies. He discusses the challenge of comparing the two markets due to varying conditions like term, risk rating, and underlying price movements.
  • Sam clarifies that the observed lower premiums in the Bitcoin market were due to lower risks, fewer takers, and lesser amounts being protected compared to the Ethereum market. This was detailed through data visualization in their analysis.
  • Sam mentions that despite understanding the premium differences, further optimizations might be necessary to ensure the premiums do not drop too low, potentially disadvantaging market makers. He advises taking advantage of the current low premiums for Bitcoin protection.
  • Jason discusses the factors involved in premium calculation for trading positions, highlighting the risk associated with each position. He points out the impact of choosing different price floors on the premiums for both short-term and long-term trades.
  • Sam adds that premiums are more expensive with higher risk levels, indicating that a higher floor results in a higher premium. He mentions the lack of published rates for these premiums.
  • Jason mentions an update that allows users to compare premiums across different terms and floors through a new table, clarifying that these are current rates, not estimates or predictions.
  • Jason shares an example of a successful trade where a trader used protection to secure a profit by buying back in at a lower price, demonstrating the application of the platform’s trading mechanics.
  • Sam mentions updates to the Gitbook that are being rolled out, focusing on updating the protocol section.
  • Jason notes that GitBook is becoming a key resource for detailed information about Bumper, distinguishing it from the basic introductions found on their website. 

Revolutionizing DeFi: Bumper Protocol’s AI Integration & Innovative Features

  • Garrett outlines the integration of Large Language Models (LLMs) into Bumper’s AI stacks, highlighting their use in sentiment analysis.
  • Garrett explains that Bumper is a DeFi protocol aimed at protecting assets from price drops, detailing its challenges and the limited availability of similar instruments.
  • Garrett describes the blockchain-native approach of Bumper, contrasting it with traditional option markets, and highlights its cost efficiency and the protocol’s ability to rebalance.
  • Garrett notes Bumper’s versatility in providing options that are not readily available in traditional markets, describing it as an automated market maker for option contracts.
  • Garrett details four fundamental ways AI is leveraged in Bumper, starting with the use of a sentiment LLM that processes vast amounts of data to predict market trends.
  • Garrett mentions the budget allocation to develop an AI-based agent simulation model that predicts premium costs, aiming to launch this feature soon.
  • Garrett discusses the use of AI to review and improve code, mentioning a recent audit that involved feeding the entire codebase into a model to generate enhancements.
  • Garrett introduces an AI-driven trading bot, codenamed YOLO, that leverages market predictions to maximize profits while using Bumper for price protection, highlighting its innovative and aggressive strategy.
  • Jason states that their system manages positions for you on GMX, predicting market behaviors like sentiment analysis, which is integral to AI’s capabilities. He also mentions the release of the next phase proposal in their Discord, aiming towards mandatory bonding.
  • Jason explains the bond boost, offering a 50% APY on bonded amounts, and enhancing returns on premiums paid by users through additional bond incentives, thus increasing the bump tokens within the protocol.
  • Jason announces that DAO staking rewards will soon be introduced, providing a share of 2.5% of $BUMP tokens over three years to those staking in the Bumper DAO, inviting feedback to finalize these updates swiftly.
  • Jason notes that a listing on a top 10 centralized exchange is imminent, with contracts finalized and funds transferred, pending approval for the announcement date.
  • Jason introduces a referral program launching soon, designed to reward referrals with bump tokens, supported by a campaign involving Key Opinion Leaders (KOLs) to increase engagement and momentum.
  • Sam questions what the most important next feature for the protocol should be, emphasizing the need for community input to ensure impactful developments in a constantly changing market.
  • Jason underscores the value of community feedback, admitting delays in response due to his workload but ensuring that all input is considered for future developments.
  • Jason previews upcoming initiatives including the referral program, the sex listing, a trading bot, and AI enhancements, alongside research partnerships aimed at understanding and promoting the protocol.
  • Sam describes the bumper protocol, which allows crypto holders to protect their investments against market downturns without missing out on potential gains, through a system where takers pay premiums and makers provide liquidity, benefiting both parties.

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Show Information

Medium: YouTube (Video)

Show: Bumper

Show Title: Bumper Office Hours – 18 April 2024

Show Date: April 18, 2024