Bonders
For bonders, the value proposition is straightforward:
Predictable Returns
Bonds offer users a fixed payout upon maturity, providing clear expectations of the returns they will receive. This stability contrasts with the potential volatility associated with other DeFi opportunities.
Opportunity for Discounted Assets
Users can acquire assets at a discount to market price through the purchase of bonds. This opportunity can lead to an attractive entry point for acquiring tokens of projects they believe in.
Participation in Project Growth
By bonding, individuals actively support projects they consider promising. This engagement not only aligns bonders with the project's success but also fosters further community involvement and governance participation.
Alternative to Liquidity Provision and Reduced Impermanent Loss
Bonds present an alternative to liquidity provision by enabling bonders to directly exchange their LP tokens with a protocol for discounted tokens, creating a value flywheel between the project and bonder.
Flexible Time Horizons
With several options for short-term and long-term bonds, bonders can match their time horizons and obtain a discount to market price.
Participation in Project Fundraising
Bonders contribute to project financing by purchasing bonds and providing assets like stablecoins and ETH, supporting the protocol's development, expansion, and growth initiatives.
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