Heaven, you fool? Did you ever year of any pirates going thither? Give me hell, it’s a merrier place.
Ahoy, fellow Pirates, as mentioned in our previous incentives blog post we’re introducing a bonding programme for DBL on xToken Terminal:
this bonding programme is being launched in partnership with xToken Terminal whose “Origination” launched today, previous blog post here:
but before we get into the DBL Bonding specifics, let us go through the basics…
What is Bonding?
Bonding was introduced by Olympus DAO as a financial primitive for protocols to acquire their own assets and liquidity. Bonds were the primary mechanism for Treasury inflows, which helped grow the network.
Capital is committed upfront by Bonders who are promised a fixed return at a set point in time; that return was originally in OHM and thus the bonder’s profit would depend on OHM price when the bond matures.
However, unlike the first iteration Olympus Bonding model, we’re not adding staking and / or a rebase mechanism for DBL. This is the straightforward, well-designed bonding programme to help grow Galleon’s protocol-owned liquidity.
You can read more information about the basics of bonding here:
Why a bonding Mechanism?
$DBL bonding will be introduced as a way for Galleon to secure protocol-owned liquidity in the form of DBL-WETH LP tokens, which will directly benefit the DAO and Cursed DAO while, in turn, offering a discounted premium to Bonders on the current DBL price with a vesting period to compensate for the discount.
How does it work?
Bonders swap DBL-WETH Uni v3 LP tokens in the Bonding programme; in exchange, they will receive DBL at a 5–15%* discount, which has a 14-day vesting period (and 7-day cliff).
Once Bonders have initiated the Bond, the DBL-WETH is locked — this is where the term “protocol owned liquidity” comes in, as Galleon now owns this liquidity. After the vesting period has been completed, and the DBL has been received, the Bonder is free to hodl, trade etc, as they see fit.
The Specifics:
- Launch: 10th January 2023
- Bonding will be via xToken Terminal
- Programme Duration: 1 Week
- Deposit: DBL-WETH Uni v3 LP tokens
- Receive Discounted: DBL (5–15%*)
- Vesting schedule: 2 weeks vesting (1-week cliff).
- The bonding discount and vesting period will be monitored and adjusted in accordance with the current price of $DBL to avoid potential situations of significant pricing discrepancy.
Discount fluctuations
The initial discounted premium of the DBL is 9%, this however can fluctuate depending on the current price of DBL.
To help calculate the premium, xToken Terminal have created a spreadsheet which, once populate — with live data from the contract — will give the accurate current premium.
You can find that here:
How to Bond?
Bonding is a two-step process, firstly a potential bonder needs the underlying bonding token (in this case, it’s the DBL-WETH LP token) this is completed on the xtoken terminal app’s origination page, and then, the second step is bonding that LP token for the discounted doubloon via the bonding page (see below):
Acquiring the DBL-WETH LP
Head to the below link to acquire LP in DBL-WETH here:
On the page, you’ll need to connect your wallet in the top left of the page, and once complete, click on the deposit button.
This will prompt a disclaimer window for xtoken terminal:
Click continue; if you’re happy to proceed and you’ll see the deposit prompt. For this stage, the liquidity must be equal (e.g. if you wish to provide 0.01 ETH of liquidity, you’ll need 0.005 of WETH and 0.005 DBL) if you enter half the amount you wish to LP in the WETH panel, it will automatically calculate the required DBL amount.
Once you’re happy, click deposit:
Now you have the required LP token, you’ll need to head over to the origination page here:
There is a number of pools, so you’ll want to search “DBL” to bring up the bonding programme. You’ll be able to identify the bonding programme via the DBL-WETH offer token.
Once you’ve selected the relevant DBL programme, you’ll see the Bonding overview, which includes the programme token, the swap token, the vesting period, etc.
If you’ve decided you’d like to bond, click the bond button at the bottom of the page. This will create a pop-up where you can input the amount of DBL-WETH you’d like to bond; doing this will provide you with an estimate of the amount of DBL you’ll receive, which includes the discounted premium.
Once happy, click the “I agree to the xToken Terminal terms” check box and hit the “Bond” button.
Congratulations, you’ve just successfully bonded; users will wait 7 days and then be able to claim linearly over the next 7 days.
Where can I learn more?
That’s all for now; I hope the guide covered everything, but if not, the Galleon crew are always here to answer your product and support queries, join us on Discord and pledge 100 years before the mast.
Discord: https://discord.gg/galleondao
Follow us
Twitter: https://twitter.com/galleondao
Explore the websites
Galleon: https://galleon.community
Dapp: https://app.galleon.community
Flying Dutchman Capital: https://flyingdutchman.capital
Cursed Pirates: https://cursedpirates.xyz
