Bond(ing) as a Service
How Scary Chain Capital’s ready-to-implement bond contracts are helping protocols to gain long-term self-sustainability
All protocols, especially new ones, aim for deep liquidity for their native token. They incentivize a liquidity pool, attract mercenary farmers and rent liquidity.
Liquidity Mining was born.
Protocols are even somewhat forced to pay users to provide rental liquidity because without, surviving would be almost impossible.
During market downward trends users will likely withdraw their liquidity and a negative feedback loop starts.
This makes the model unsustainable.
For long-term sustainability however, we can now offer an innovative and easy-to-implement bonding mechanism which enables protocols to own their own liquidity, forever.
Owning their own liquidity, protocols earn on transaction fees on the LP token they purchase. By not having to pay mercenary farmers to provide liquidity, they also save incentives which could be used for other things.
The road to self-sustainability and long-term growth is ready.
How do our bonds work?
Using our smart contracts, the DAO’s or protocol’s treasury will be able to offer their token for a discount in exchange for a liquidity pair, or even any other token they choose.
Users can create LPs or use existing ones to exchange those for discounted tokens, which could be directly put into a time locked staking contract of the protocols choosing. This further incentivizes users to stick around to profit from the protocol’s revenues.
—Users avoid the risk of impermanent loss.
— Protocols/DAOs can earn on trading fees
— Not dependant on mercenary liquidity providers anymore
— Bonding can be implemented on your own website
— Dashboard is set up including front-end
During one week of having instant bonds available, SCCs treasury grew roughly $350k through bonds alone!
These bonding periods can be strategically enabled and disabled by the protocol or DAO however they see fit.
This further shows the upside of having the bonding model implemented:
Being able and flexible enough to strategically plan for the long-term success of your protocol or DAO.
What do we offer?
Tailored bonding solution with auto-staking and additional features
More information and how to get in touch with us can be found here