# Permissionless Bonds

#### **The Basics**

Bonds are a mechanism that enables protocols to issue vested tokens to quickly acquire assets. Within the market, bonders exchange one asset (i.e. quote token) in exchange for another vested asset (i.e. payout asset) at a specified discount. Bond market parameters such as vesting type, duration, capacity, and auction type can all be [<mark style="color:orange;">configured</mark>](https://medium.com/@Bond_Protocol/configuring-bond-market-deployment-2-3-335aaac08e47) according to the issuer’s needs — maximizing versatility for asset acquisition.

Bond markets are[ <mark style="color:orange;">fully permissionless</mark>](https://medium.com/@Bond_Protocol/introducing-permissionless-bond-market-deployment-b6cfbcd13fad) and can be deployed by anyone, including individuals, DAOs, protocols, VCs, and funds. In addition, bond markets are not gated and are open to any user who wants to exchange a market’s desired quote asset for the vested payout asset in return.

Payout tokens are offered at a discounted rate to incentivize users to operate within bond markets rather than on the open market. They also have a vesting period to prevent users from selling the discounted tokens at once for a quick profit. These mechanisms align incentives between Issuers and Bonders.

<figure><img src="/files/Gzs8WrlPUadCa44Yw6zq" alt=""><figcaption><p>Bond Market Participants</p></figcaption></figure>


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