Balance Capital
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Balance Capital

(4,4) Has Arrived, Bringing Convenience & Security

FantOHM DAO has, once again, made the investments of their stakeholders more secure and convenient to manage. When the FHM protocol launched, bonding was implemented as a core dynamic of its protocol owned liquidity model. In the (3,3) concept, which embodies infinite game theory in our literature, the bonds we have offered up to this point are considered (1,1) — a net positive in the system which adds to the effectiveness of our revenue generation strategy. Bonds can be considered the most potent source of treasury income for any protocol owned liquidity system, usually.

This is an example of the bonds which we’ve used up to this point.

Investors who wish to access our protocol at the most competitive entry levels have had to wait for their moment before purchasing a bond at the best discount available. This system incentivizes the investor through a nominal discount while providing the liquidity held by our treasury through the acceptance of pre-determined assets. In FantOHM DAO’s case, these include DAI and FHM-DAI LP bonds, although future bond options may be presented.

When an investor purchases a bond, however, there are some concerns which our developers and strategists have become keenly aware of:

  • Market participants may choose to sell their vested FHM bond on the open market as they receive it in stages, which rewards negative behavior toward more loyal investors.
  • Bonds are disbursed on a vesting schedule which spans the course of 5 days, which requires investors to stop their daily routine in order to manage their revenues.
  • FHM rewards through bonds must be staked manually, which requires both additional time and loss of capital through network fees. This creates a barrier to entry for ‘smaller’ investors, by which we cannot abide.
This is a clip of the new bonding UI. As you can see, new users will enjoy the same simplicity as all of our previous users.

As a fix to these issues as they pertain to convenience, long term profitability, and the security of capital investments, our developers have crafted the solutions we currently offer to alleviate the above concerns into a single point of satisfaction. (4,4) bonds are just the same as traditional (1,1) bonds, except they are paid out in staked FHM rather than the FHM token currently traded on decentralised exchanges. The reason for this is twofold: investors gain access to compounding rewards without the need to interact with their holdings while loyal holders can rest easy knowing that the value of FHM is protected through increased global staking percentages. In this case, global means “across all chains which have an FHM protocol”.

While these factors of (4,4) implementation are quite good, the main event in terms of investment security comes in the form of how FantOHM DAO pays out vested bonds. Rather than giving sFHM directly to bonders at the end of segmented periods, ala the process used for (1,1) bonds to reward FHM to bonders, the entirety of the bond is held until a vesting period of 5 days has been fully completed. This means that a (4,4) bonder who buys on Sunday night will receive their rewards on Friday night. Besides offering security through price stability in time of high bond purchasing, this system also allows the vested bonder to receive every last drop of value from their initial investment into the future of FantOHM DAO.

Larger investors receive benefit by entering the protocol in this method as they are not subject to entry slippage normally experienced on the decentralized exchanges. This will incentivise larger buyers of FHM to enter the protocol with the comfort of knowing that their positions are also not frontrun by bots on these exchanges effecting their entry price.

In summation, we are proud to announce that FantOHM DAO’s investing population has been considered heavily to the end of providing the best possible solutions. By mixing the best aspects of bonding, staking, and the warmup period added only last month to our staking protocols, we’ve landed on a solution that offers the best advantages to all parties. Do note, however, that once current bonds are fully vested, the new system of (4,4) bonding will replace (1,1) bonding in its entirety. We can’t wait to hear the stories of how this change will provide value to our community in the foreseeable future.

FantOHM DAO is a spooky investment ecosystem operating on Fantom and Moonriver. We deliver spectral transparency and undying vigilance on the market through the efforts of a dedicated tech and business development team. Be sure to visit on the Internet, in Discord, or Telegram. Share you story with us on Twitter.

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