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How to Series (Advanced) — How to Convert Bonds (LBT+SBT) to ETH

In this article, we’ll go over how you can remerge LBT and SBT with the identical maturity date and strike price, back into ETH.

How is this even possible you might think?

This is made possible due to the unique characteristics of LBT and SBT.

To understand what is going on here, we need to think about how the LBT and SBT came into existence in the first place.

LBT and SBT are both derivatives created from ETH.

When the LBT and SBT are created from ETH, they come into existence with matching maturity dates and strike prices.

The LBT absorbs volatility (risk) and SBT is left with price stable characteristics.

To give a DragonBall analogy, ETH is the Nameless Namekian (the son of Katas), Piccolo is the LBT and Kami is the SBT.

Piccolo and Kami were both born from the same Namekian.

Piccolo takes on the warrior type personality and Kami takes on the peaceful and gentle personality.

Later on in the DragonBall story, Piccolo and Kami remerge to become one again to fight the evil character Cell.

I hope that the analogy wasn’t confusing!

Why might someone want to fuse SBT and LBT into ETH you might ask?

In most cases, this would be to take advantage of an arbitrage opportunity.

We’ll cover this in another article, but today, let’s go over the Bonds to ETH functionality, step by step.

How to remerge LBT and SBT back into ETH — Bonds to ETH

Requirement: In order to perform Bonds to ETH, you need to be holding an equivalent amount of LBT and SBT with the identical maturity date and strike price.

Step 1 Connect wallet and go to dApp settings

Go to and connect your wallet.

After your wallet is connected, click on the gear icon.

That will open up the dApp settings.

Turn the Enable Bonds to ETH settings on.

Once that is done, exit the dApp settings and click Trade in the top menu bar.

Once you are in the Trade screen, click on the Select Market pull down and select the combination of the bonds (LBT+SBT) that you want to merge under the Bonds to ETH tab.

Step 2 Enter amount to trade

Enter the number of bonds (LBT + SBT pair) that you want to convert to ETH.

For example, if you wanted to convert 0.5 LBT and 0.5 SBT with the identical strike price and maturity date, you would enter 0.5 here.

Click the Remerge button and confirm the details of the transaction.

Step 3 Confirm transaction with wallet

After you click the Confirm button, your wallet will ask you to confirm the transaction.

Your wallet will ask you to confirm several times depending on the steps required for the transaction.

Approve settings can be changed in the dApp settings.

You can see the progress of your transaction in the notification area.

Step 4 That’s it!

Once your transaction is successfully confirmed on the blockchain, your balance will refresh.


Bonds to ETH is an interesting function that allows a holder to remerge a pair of LBT and SBT (with identical maturity and strike prices) back into ETH.

This is an advanced functionality that most people might not end up using.

Nonetheless, for those that want to get creative, it will open up clever ways of arbitraging, as well as a way to convert bonds into ETH without slippage.

In future articles, we’ll walk you through how you can utilize the Bonds to ETH functionality to take advantage of arbitrage opportunities so don’t miss it!



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