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DeFi-Based Crypto Volatility Protection Plan Bumper Raised $10M

Bumper, which is a sort of insurance policy against crypto’s known volatility, that relies on features similar to those of DeFi, has raised $10 million from Autonomy, Alphabit, ChainLayer, Beachhead, and others as part of a private token sale.

The company lets users protect the value of a crypto asset by creating a price floor for it with a bond that it can be redeemed at that price.

Let’s say you have $100 worth of ETH – with 90% of its value guaranteed by the company, you would have a floor protection of $90. In the case that the price of ETH falls and your investment would be worth $80, you would still be able to withdraw $90 in the form of USDC stablecoin.

Gareth Ward, the CEO of INDX Capital, the company behind the Bumper protocol, declared:

“Firstly, we tried to target pinch points in the DeFi sector and what we saw as quite large over-collateralization that’s required in a lot of lending and borrowing. What came out of this was the more fundamental issue of price volatility. Using aspects of DeFi, we’ve solved for this in a unique and decentralized way.”

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