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Bonds

Introduction to Bonds (Now Live!)

Bonds allow users to buy BLKD from the protocol at a discount by trading it with i) liquidity (LP tokens) or ii) other assets. The former is called liquidity bonds and the latter reserve bonds.
Bonds take roughly 15 epochs to vest, and BLKD tokens are vested linearly to the user over that period. Liquidity bonds help the protocol to accumulate and lock liquidity, while reserve bonds allow the protocol to grow its treasury, and thus its RFV (or the treasury value backing each BLKD token) faster.

Bonding is the secondary value accrual strategy of Olympus

It allows the DAO to acquire its own liquidity and other reserve assets such as DAI by selling BLKD at a discount in exchange for these assets. The protocol quotes the bonder with terms such as the bond price, the amount of BLKD tokens entitled to the bonder, and the vesting term. The bonder can claim some of the rewards (BLKD tokens) as they vest, and at the end of the vesting term, the full amount will be claimable.
Bonding is an active, short-term strategy
The price discovery mechanism of the secondary bond market renders bond discounts more or less unpredictable. Therefore bonding is considered a more active investment strategy that has to be monitored constantly in order to be more profitable as compared to staking.

Bonding allows Olympus to accumulate its own liquidity

We call our own liquidity Protocol Owned Liquidity (POL). More POL ensures there is always locked exit liquidity in our trading pools to facilitate market operations and protect token holders. Since the DAO becomes its own market, on top of additional certainty for BLKD investors, the protocol accrues more and more revenue from LP rewards bolstering our treasury.
Bonding $BLKD Tokens! The Bond page allow users to bond BLKD from the protocol at a discount by trading it with i) liquidity (LP tokens) or ii) other assets. The former is called liquidity bonding and the latter reserve bonding.
The bonding action create bonds which take roughly 15 epochs to vest, and BLKD tokens are vested linearly to the user over that period. Liquidity bonding help the protocol to accumulate and lock liquidity, while reserve bonding allow the protocol to grow its treasury, and thus its Backing per BLKD faster.
BLK Finance offers currently different types of assets that can be used to bond BLKD on its website:
  • DAI
  • BLKD-DAI LP