Recent reports show that price volatility is one of the biggest deterrents preventing new investors from entering the cryptocurrency market, with nearly 40% hesitant as a result. To combat this problem, the crypto space is trying to come up with decentralized finance (DeFi) solutions. However, traditional financial options models are less efficient in the crypto market, so DeFi 3.0 is gradually introducing innovative features such as enhanced liquidity mining and staking mechanisms, permanent derivatives, NFT lending, and cross-chain interoperability.

Launched on September 7, DeFi protocol Bumper aims to protect the value of users’ crypto assets from bear cycles and market crashes. Bumper uses dynamically priced premiums, making Bumper an attractive alternative to options contracts. However, the cryptocurrency market is still uncertain, and the development of DeFi 3.0 still needs time to test.