What’re Pre-Bond and Genesis
In Genesis, you can choose up to 50% of your funds into Pre-Bond. There’re some major differences between Pre-Bond and Genesis ( Not Pre-Bond part):
- BTCH acquired from Pre-Bond are released after 7 days, while BTCH acquired from Genesis are liner released in 180 days (10% can be claimed at the time of formal starting ).
- BTCH acquired from Genesis will not have discount, while BTCH acquired from Pre-Bond MAY have discount, if the pre-bond part are less than 50% of the total deposits.
- However, in the 180 days after the formal launch of the protocol, Genesis part will get an extra 30% of all BTCH sent to the Reward Pool, which will happen when bonds sale and rebalance, distributed pro rata in the Genesis pool.
Let’s take an example.
If Alice and Bob both deposit 100K USDC in Genesis stage, Alice chooses 0% into the pre-bond and Bob chooses 50% into pre-bond. The starting price is 4 USDC per BTCH, so Alice will get 2500 in the first day and 22500 BTCH in 180 days, Bob will get 1250 BTCH in the first day (10% of the Genesis part, 50000 / 4 * 10%), 13889 BTCH after 7 days (all the pre-bond part, in 10% discount) and 11250 BTCH in 180 days (90% of the Genesis part, 50000 / 4 * 90%).
In the following 180 days, let’s suppose a daily BTCH bought from bonds sale is 2K USDC, that’s 526 BTCH if the price does not change and with a 95% discount (2000 / 4 / 95%), 526 * 30% = 158 BTCH will be rewarded to Genesis participant daily. Since Alice’s 100K USDC is 2/3 of the total Genesis participants who do not choose to pre-bond (Alice’s 100K added up with Bob’s 50K), then she will get 158 * 2/3 = 105.33 BTCH daily, a total of 105.33 * 180 = 18960 BTCH in 180 days. On the other hand, Bob will also get 158 * 1/3 = 52.67 BTCH daily and 9480 BTCH in 180 days.
At this point, it seems that Alice gets a higher return than Bob. But don’t forget the staking returns. Suppose both of them are claiming BTCH daily and put them into the staking pool, and suppose the staking pool provides a 200% annual return. Without calculating compounds, Alice will get 2500 * 200% / 2 + 22500 / 2 * 200% / 2 + 18960 / 2 * 200% / 2 = 23230 BTCH as staking rewards, and Bob will get 1250 * 200% / 2 + 13889 * 200% / 2 + 11250 / 2 * 200% / 2 + 9480 / 2 * 200% / 2 = 25504 BTCH as staking rewards.
So, after 180 days, Alice will hold 2500 + 22500 +18960 + 23230 = 67190 BTCH, Bob will hold 1250 + 13889 + 11250 + 9480 + 25504 = 61,373 BTCH.
From long term holder’s view, Alice out performs Bob by not choosing Pre-Bond. However, market always changes, since Bob is holding more liquid BTCH most of the time in the 180 days, he can sell BTCH at high and buy BTCH at low to gain more as a trader or arbitrager.
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