Vesting Type and Duration

Vesting Type and Duration Selection

Issuers can choose between two distinct vesting types to tailor their bond programs:

Fixed-Term (Instant, 7d, 14d, 28d, Custom Length)

With Fixed-Term Bonds, bonders are provided an ERC1155 token representing their position and the underlying token is claimable after the chosen duration. Essentially, fixed-term bonds spread emissions across time. If a specific or longer period is required, issuers can opt for "Custom" and then set the desired duration up to a maximum of 270 days within the UI.

Fixed-Expiry (Custom Date)

Fixed-Expiry Bonds vest at a predetermined date or timestamp, granting bonders an ERC20 token to represent their position. Fixed-expiry bonds operate similar to cliff-style vesting. When using the Bond Protocol frontend, fixed-expiry bonds must have a minimum of 3 days vesting and a maximum of 270 days vesting.

Short-Term vs Long-Term

Short-term bonds span less than a month (7 days, 14 days, or 28 days)

  • Ideal for swift asset acquisition, often at a relatively smaller discount compared to long-term bonds.

  • Offers bonders their vested payout asset within a shorter time frame.

  • Well-suited for projects with active liquidity mining programs, allowing a quick exit for LPs due to shorter vesting periods.

  • Effective in managing emissions by gradually distributing rewards to the bond program, preventing abrupt liquidity declines.

Long-term bonds extend beyond two months (3 months, 6 months, or 9 months)

  • Defers vesting to extended horizons, potentially demanding higher initial discounts compared to short-term bonds.

  • Appeals to long-term aligned token holders and community members, providing an opportunity to acquire governance tokens at discounted rates.

  • Ideal for treasury diversification, delivering stable assets upfront for operational expenses or growth initiatives.

  • Requires more consideration regarding future token claims and potential higher initial discounts.

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