Partnership Announcement
Fjord Foundry & Bond Protocol
We are excited to announce a partnership between Bond Protocol and Fjord Foundry (formerly Copper Launch). Fjord Foundry and Bond Protocol align the best interests of crypto projects, their contributors, and their communities through open, decentralized, and permissionless token launches (via Fjord) and liquidity acquisition through Bond Markets (via Bond Protocol).
Problems with Raising Capital & Bootstrapping Liquidity
Capital and liquidity are critical to the success of crypto projects to fuel initial growth. Historically this was done through ICOs, which presents a number of challenges to the project and their communities:
- Access to tokens at a favorable initial price, often gated to insiders
- Insiders often possess significant stakes that can stifle token governance rights
- Whales, bots, and mercenary capital can game the system to snipe as many tokens as possible
These issues damage the market perception of crypto projects during their crucial launch phase — and leave the community on the sidelines or at a significant disadvantage.
Assuming projects and communities weather the initial storm to establish their treasuries and distribute tokens, they then continue to wage war against mercenary capital during the Liquidity Mining phase. During this phase, projects incentivize rented liquidity by emitting their native governance token. Liquidity mining often creates a vicious cycle through which:
- Large mercenary miners pump liquidity, reap yield, and exit positions. Nansen indicates that more than 50% of farmers exit within just 15 days.
- Token price and liquidity are extremely volatile, causing impermanent loss to remaining liquidity providers
- Panic ensues and sell pressure is exacerbated, furthering token price and liquidity declines
Yet again the community loses — through IL, token price declines, and market perception of project viability. The project itself has now depleted its treasury reserves and its native token has decreased in value, with a fragile treasury missing out on the benefits of protocol-owned liquidity (POL) or non-correlated reserve assets (ETH, stables) to protect against downside.
Put simply — launching tokens, bootstrapping liquidity, and creating flexible treasury management practices during the next phase of a project’s growth is a disjointed process rife with competing incentives and points of failure.
Enter Fjord Foundry & Bond Protocol
Establishing & Growing Sustainable Liquidity
The partnership between Bond Protocol and Fjord Foundry solves these fundamental challenges by providing crypto projects with the ability to create open, transparent and permissionless token markets. With our platforms, protocols can bootstrap liquidity and continually acquire permanent POL. Together, we provide a comprehensive launch and scaling solution for crypto projects’ liquidity needs.
Bootstrapping Token Launch Liquidity
Fjord Foundry empowers crypto projects to issue fair, community-aligned, transparent, and decentralized token launches and distributions through Balancer Liquidity Bootstrapping Pools (LBPs). Projects can source initial liquidity and experience price discovery, while communities can support their favorite projects with exposure to their tokens at launch.
Projects simply need to navigate to Fjord Foundry’s site to begin market configuration and deployment. Configuration options include base token & amount, pool weights, market duration, and swap fee.
Once the market is live, anyone can participate, and price discovery begins! Fjord’s high-low price discovery mechanism removes incentives for front-running and provides a liquid token market for participants to freely enter and exit.
Upon conclusion, the issuer’s treasury has then been established with tokens fairly distributed to participants.
Since its inception in 2021, Fjord has helped teams generate over $750m in liquidity and supported over $1.5 billion in volume. LBPs have facilitated more volume than many centralized entities in the process.
Protocol-Owned Liquidity and Treasury Diversification
Bond Protocol offers capital raise solutions through permissionless markets for Olympus-style bonds. Bond markets provide crypto projects with the ability to secure POL, diversify their treasury, establish runway, and acquire strategic assets.
Bond issuers can easily deploy markets through our frontend interface or directly via our smart contracts. Configuration options include quote/payout assets (what you’re acquiring and what you’re emitting) & amounts, market duration, vesting type and vesting terms. For more information on bond market considerations, check out our primer here.
Upon deployment, community members can bond the quote token (LP tokens or treasury reserve assets) in return for discounted governance tokens. Market participants openly compete for the best possible bond price — set by our sequential dutch auction mechanism. Upon completion of the vesting term, the underlying payout asset can be claimed to utilize elsewhere in DeFi.
Meanwhile, quote tokens are immediately deposited into the issuer’s treasury. Over time, the treasury composition will shift towards the bond issuer’s liquidity ownership and diversification goals. The project can then reduce liquidity mining emissions, or minimize the effect of token price impact on runway and growth.
What to expect from the Partnership
In phase one, Fjord Foundry & Bond Protocol will work together to drive value to projects launching LBPs and establishing diversified treasuries — through collaborative business development initiatives and market education.
Our teams will also explore greater integration opportunities — potentially unifying aspects of our respective user flows.
Open, transparent, and permissionless markets are key to building a better financial system. By ensuring LBP launches and treasury management tools are open for all, Bond Protocol & Fjord Foundry are supporting nascent crypto projects and their communities for the better.
Join us in this exciting partnership as we work together to empower crypto projects and bring about fair liquidity launch and transparent scaling solutions.
Bond Protocol
Website: https://bondprotocol.finance/
Docs: https://docs.bondprotocol.finance/
Twitter: https://twitter.com/bond_protocol
Discord: https://discord.gg/bondprotocol
Fjord Foundry
Website: https://fjordfoundry.com/
Docs: https://help.fjordfoundry.com/
Twitter: https://twitter.com/FjordFoundry
Discord: https://discord.gg/H8DsM4uz
