Liquidity Bonds

ApeSwap’s Liquidity Bonds can offer different projects’ communities a discounted way of getting involved with the projects they admire and provide liquidity for them while they will easily benefit from a lower price of the projects’ tokens. Meanwhile, Bridge Oracle has also provided the community with a new BRG/BNB Bond on ApeSwap as another step toward letting the community get involved with the project further going in the development process of new Bridge products.

For a better understanding of the Bonds and what ApeSwap has provided users, we are going to go through a simple introduction to ApeSwap and the Bonds the platform provides. Furthermore, the opportunities BRG Bonds will bring into the community are also investigated and discussed.

What is ApeSwap?

ApeSwap is a decentralized finance (DeFi) platform offering a full suite of tools to explore and engage with the future of wealth building, overseen by the ApeSwap Decentralized Autonomous Organization (DAO).

Through ApeSwap’s products — including ApeSwap’s decentralized exchange, utility token staking, premium launchpad, lending network, and NFT projects — all users and partners can tap into the next generation of financial innovation in a secure, transparent, and globally accessible way.

What are ApeSwap Bonds?

As part of ApeSwap’s initiative to ensure the long-term health of the protocols while offering new ways to generate sustainable liquidity, a new product was created that is called the “ApeSwap Bonds”.

Inspired by a combination of TradFi, DeFi, and NFT products, Bonds allow users to access tokens at a discount in exchange for their liquidity provider (LP) tokens, or in exchange for single assets like blue chip tokens or stable coins. Each Bond is a unique NFT that represents the output tokens (BRG for example), which vest over a certain amount of time.

Liquidity Bonds allow users to sell their LP tokens to receive an NFT that represents project tokens at a discount, vesting over a certain period of time.

As for other types of Bonds that ApeSwap has generated, there are Launch Bonds that work like Liquidity Bonds, but are specific to new tokens and help build sustainable initial liquidity for new projects. On the other hand, Reserve Bonds are also available that allow projects to diversify their treasuries by selling NFTs that represent their native token at a discount that vests over time, in exchange for a single asset such as a blue chip token or stablecoin.

What are Liquidity Bonds?

Further going into the matter of Liquidity Bonds, with the token-based NFT system that ApeSwap has provided, the platform offers users the opportunity to bring liquidity into specific supported projects and gain Liquidity Provider tokens (LP tokens). Then, they can sell their LP Tokens in exchange for an NFT that represents access to other tokens at a discount relative to the current market price. These tokens vest over a certain amount of time, becoming available to the holder of the Liquidity Bond NFT incrementally.

Bridge Oracle in partnership with ApeSwap, has now enabled users to benefit from the same opportunity by engaging with BRG Bonds in pairs with BNB; thus, making great profits through buying BRG with a discount through the Liquidity Bonds.

How to buy BRG Liquidity Bonds?

To buy a Bond, a user must first create an LP token by adding liquidity to the DEX for the trading pair that corresponds to that type of Bond. For example, BRG/BNB LP tokens are used to purchase BRG/BNB Liquidity Bonds, which yield BRG tokens. From there, users can visit the Bonds page on ApeSwap, and select the Liquidity Bond they would like to purchase.

You can begin with the following steps to buy BRG Liquidity Bonds:

1- Connect your wallet to ApeSwap.

2- Hover over Raise in the nav bar, and then click Bonds to visit the Bonds page.

3- Locate BRG’s Liquidity Bond and click on “Buy”.

Note: Liquidity Bonds have a blue “LIQUIDITY” tag above the input token pair. In this example, we’ll purchase the BUSD-UDSC Liquidity Bond with BUSD-USDC LP tokens. Click Buy.

4- Enter the amount of input LP tokens you’d like to use to purchase the Bond. The amount of BRG tokens that the Bond is worth will automatically update based on the number of LP tokens you enter.

5- Click Buy.

Done! The applicable NFT will show up in your wallet, and output tokens will begin vesting over the amount of time shown on the Bond.

Also, on the other hand, you can instead use the Zap feature to buy a Bond with a single token.