Instructions for Acquiring EEFI BONDs
It’s quite simple to acquire an EEFI Bond. Process is no different than getting your favorite shitcoins on popular DEXes like Uniswap. Come to the EEFI Bond market directly at this link HERE. Page will look like this:
Or you can visit the EeFi.finance website and click ‘Enter App’ on the right hand top corner in the GREEN. Will take you to the same newly launched app page (we’re still in BETA).
Once on the app page, this is where you can sign in with your wallet in the YELLOW below. Make sure you have wETH (that is the strategic asset being exchanged for now). Or any strategic asset that is being exchanged for discounted EEFI in your wallet. If you do not have the asset or you need to wrap ETH to wETH you can do it directly from the site by clicking the ‘Buy EEFI’ button in the RED:
Will pop up this type of window below where you can directly get any assets you need or wrap your $ETH without needing to visit Uniswap:
Once you have the assets for a Bond market, click on the ‘EEFI Bonds’ tab below on the left hand highlighted in BABY BLUE:
It will take you to the main status page of all open Bond markets. This is what it looks like including the basic information of a current market:
You can see the current market price for each Bond and the current discount. You can also see the following information:
- Bond Price ($1472.24) VS Market Price ($767.65)
- Bond Discount 91% ABOVE market price (we will talk about this)
- Max Bond (the amount of EEFI you can purchase in ONE transaction)
- Bond Maturity Period = the number of days your EEFI will be locked up
- ‘Bond Market Close Date’ is the day when the market closes (6 Days)
But let’s talk about the discount. Whenever you see the discount RED below this means Bond price is ABOVE market or spot price. Whenever you see the discount GREEN (on the right) this means Bond price is BELOW market or spot price (an actual discount). WAIT FOR THE DISCOUNT. Or the Discount to be in GREEN before interacting and purchasing.
Now whether its 0.5%, 5%, or 20%, when you like the discount simply click the ‘View WETH Market’ button and it will take you to the ‘Purchase and Claim’ page where you can purchase your Bonds. NOTE: Keep in mind you are competing with everyone else so discounts may not necessarily be very large as these examples show (especially if markets are moving upwards).
Once here make sure you are on the ‘Purchase EEFI Bond’ tab below in the BLUE. Then input the amount of EEFI you want in the RED area. Finally click the ‘Purchase Bond’ button, sign the transaction, and you are done.
Now you wait the amount of lock up time (20 days) to unlock your EEFI tokens and that’s it. Not complicated at all. You can see the current status of your Bonds by clicking the ‘Claim EEFI Bond’ tab below in the YELLOW…
It will show you how much time you have left. In this example below, the individual has until April 22, 2024 (BLUE) before they can unlock their EEFI. And you can see in the GREEN ‘Bond is Immature’ meaning it cannot be unlocked yet…
Once that time period comes though and the maturity date is reached you will see a ‘Redeem Bond’ button below in RED. Click the Redeem Bond, sign the transaction, and your bonds are automatically claimed to your wallet. Done.
Now you can do what you want with those EEFI… Sell, Stake for more EEFI, Hold, or Bond again its up to you…
Let’s Stick to the FAQs
Now here are some important FAQs to keep in mind for our First Bonding market and the many more to come after. Pay attention to every single one:
- Amount of EEFI Sold in Market Per Day: Our first Bond market will run for 6 days with a total of 500 EEFI available. The market will expect to sell about 83 EEFI per day or 38–41 EEFI every 12 hours. 6–7 day lengths will be the norm. Shorter bond markets aren’t ideal generally. Bond markets in the area of 6–7 days work well — especially given the amount of EEFI that will be put on the market. Expect multiple markets to be running simultaneously once we get a grove of EEFI burns.
- Maturity Date: This first market’s Bonds will mature in 20 days. But we will experiment with longer Bonding schedules too. Expect 2–3 months and of course 7–14 day bonding too.
- Bond Market Price Decay: Variable, based on the market movements. Like the LBP, the bond decay rate is aggressive. Price on the bond market will decay about 1.5% every hour from the current price. Buys do have an effect on the discount and can reduce it.
- Max Discount: The max discount for our Bond markets will usually fall between 20–40% from spot price and set as a floor price (meaning discount cannot send EEFI Bond price to zero). As explained in the main article, its all market based no price feeds. With high demand do NOT expect large discounts…
- How much EEFI can I buy in a single transaction?: There is a limit to how much EEFI that can be purchased in a single transaction. Large buys reduce this number. This limit is to reduce botting (not necessarily deter it). You will not be able to buy more EEFI on the front end than the current max tx size. If a transaction does not go through try a smaller size first before FUDing.
Differences Between LBP and Bond Market:
It’s All About the Discount. Let’s talk about some key differences between the bonding experience and our LBP. For the LBP it was about finding a market price for EEFI. For the Bond Market it’s about creating conditions where there is a consistent discount on EEFI Bond price. This will ensure EEFI bonds regularly attract willing buyers. Given this community members should only buy EEFI Bonds when it is on discount to the market price. There is no need to FOMO and drive the price very high from the market price.
Because if there is too high demand the premium will increase by a large amount and this will be problematic. Participate only during discounts. Even if its .01% or Spot price. Wait for a discount or close to it.
NOTE: To prevent the market from getting out of whack, people are prevented from buying on the front end when the bond price is greater than 10% from the market price. This is similar to what Uniswap does with its too low ‘low liquidity’ feature.
Bond Price vs. Market Price
What’s also important for people to know is that there’s a dynamic between the bond price and market price. Bond prices are meant to decline in a linear fashion (they are predictable). Market prices fluctuate greatly. For that reason there are many opportunities for people to get a great discount on the current market price. And we make it easy for people to monitor that on the front end. So even though the price declines 1.5% every hour, that does not mean that there won’t be a discount for many hours because price will move around the bond price frequently.
Dilution…
When it comes to “dilution” it is important to know EEFI Bonding does not cause dilution. This is primarily for 3 reasons:
- EEFI for Bonding comes out of treasury supply which is already included in the tokenomics and are earmarked for this use.
- Bonds have a vesting schedule and through that schedule EEFI is continually burned on the market with other flywheel components.
- MOST IMPORTANT: for every Bond that is sold where the exchanged value goes to acquire a Growth asset. That Bond will likely remove 3–10 EEFI off the market over time. This is primarily from the yield earned from the Growth asset (this assumes EEFI stays at the same price or reduces in price. Which likely won’t happen once people catch on)
Conclusion…
We will be looking to see what’s clear what’s not clear for individuals with this Bonding process. Peoples issues with acquiring bonds. Etc etc. so interact and let us know your experience by joining the Telegram group. Happy Bonding everyone!
EEFI Bonding for the Elastic Protocol is a return to a tried and true method of treasury | growth building aimed and upgraded for sustainability. It is still the iconic process where any individual can exchange strategic assets to the Elastic Treasury and receive potentially discounted EEFI tokens in return. With the introduction of EEFI Bonding now one can choose to buy Spot price (market based + immediate) or EEFI Bonded price (discounted + vesting period). For Olympus the height of their treasury with the bonding process was growth to a $4.4 billion value. We plan to use Bonding in a similar fashion for similar growth of the Elastic Protocol and $EEFI. Participating in our Bonding markets makes this a reality…
