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How to Profit on BondAppetit Tokens

If you are reading this sometime in early May of 2021, then you are most likely among the early investors of BondAppétit. You may have already read the whitepaper and are well aware of the fundamental benefits of the project and are ready to invest in it. The only question is how exactly to make money on BondAppétit. Let us examine the issue in greater detail.

The BondAppétit protocol has two native tokens — the USDap and the BAG.

USDap is the main asset of the protocol. It is a stablecoin that is pegged to the US dollar and will be backed by bonds. We expect that USDap will occupy its niche in the ecosystem of cryptocurrency stablecoins and will be used as a means of settlement by both ordinary users and other DeFi protocols, such as Curve, Compound, Aave, etc.

BAG (BondAppétit governance token) is a governance token and the main focus of investor interest. The exchange rate of BAG is free-floating and determined solely by market dynamics. Within the next two years, most BAG tokens will be distributed among the community. This is important both from the point of view of the future of the protocol, as truly decentralized solutions are valued higher on the market, and for minimizing legal risks.

There are two ways of making profits on BAG tokens:

  • On the growth of its market value;
  • By means of passive income from owning BAG tokens.

Method 1: making profits on the growth of the exchange rate of BAG tokens

The vast majority of investors come to the crypto market looking for ultra high returns. The “buy low and sell at ATH” strategy can rake in thousands and sometimes millions of percent of profits in a very short timespan. You just need to be among the first to learn about a new asset and see its potential over time.

Exorbitant returns do not occur overnight. Decentralized projects take years to lift off and reach maturity. Yes, there are exceptions like Dogecoin, which took off on Elon Musk’s tweets. But they usually deflate just as quickly as they appear. For ensuring sustainable, long-term growth, a decentralized project needs to show fundamental advantages.

If you evaluate BondAppétit as a long-term investment, then you should, first and foremost, pay attention to the following factors:

  • A real use-case (business loans).
  • A large market volume. The global bond market is estimated at $128 trillion.
  • Passive income for BAG holders. Holders of governance tokens will regularly receive income in the form of coupon payments from bonds used as collateral for the USDap stablecoin. The more borrowers, the more coupon payments.
  • A team with experience and connections in the corporate environment. BondAppétit’s founder Artem Tolkachev is the former head of Blockchain Lab at Deloitte, and advisor Alexander Ivanov is the head of Waves, one of the largest decentralized projects on the crypto market.

The exchange rate of BAG will remain volatile in the coming months, due to the early stage of the protocol’s launch. However, one should focus on fundamental factors to assess the value of any token in the long term. The protocol’s development team has prepared a huge whitepaper that contains answers to all of the main technical and legal questions.

Method 2: receiving passive income from owning BAG tokens

The second way (which will be available starting from the second launch phase) is making money on BAG by simply buying the tokens and holding them on a special contract, thus receiving interest income from the bonds used as collateral.

It is up to the protocol’s community to decide how to dispose of the bond coupons. If the community decides to distribute it among the BAG holders, then the income from coupons will be converted from fiat to stablecoins, all transferred to a special contract. From there on, it will be distributed to the owners of the governance tokens. When selecting the bonds, the protocol is guided by an annual yield of 3–6% per annum. The income from coupons is paid on a quarterly basis and the funds are allocated for distribution to a special contract, as determined by the community.

The rewards of BAG holders are directly related to the volume of USDap stablecoins issued. The emission of the stablecoins will constantly increase. By purchasing the tokens once, token holders will be receiving incremental income from the entire amount of bonds in securing the protocol.

The generation of stable, passive income from sources in the real world is one of the key features of BondAppétit.


At the moment (May 2021), there are no bonds in the protocol as yet. The USDap stablecoin has been issued against collateral in the form of USDC. The purchase of the bonds will mark the transition to the second phase of the launch of BondAppétit, which includes collateral and early borrowers. The protocol will start doing what it was created for — issuing loans.


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The first DeFi protocol with a stablecoin fully backed by bonds