Gem Hunters - Bonded Finance
The DeFi space is in a constant hyperdrive, usually going too fast to keep up with everything we can do with it or the projects that make it happen. One thing we do know is most of DeFi is happening on the Ethereum blockchain. We also know many projects have their own coins for governance or for certain benefits. But what about some lesser-known assets? The pick for today is Bonded Finance.
Why Bonded Finance Is A Great Pick
There are quite a few things that I like about this project. For starters, they have discovered a way for dormant assets or coins without inherited benefits to having a way to be used for yield farming. This allows you to gain more value for your assets while adding them to a liquidity pool which could be useful to the community. This is based on an algorithm to unlock digital assets.
The second thing I really like about Bonded Finance is how their approach to open finance is the next level and a step forward to what we are already seeing in this space. With the ability to take dormant coins and provide them to a collective liquidity pool, Bonded Finance is able to create its own pool to create special DeFi benefits by way of its BOND ERC-20 token. The token is minted and used in replace of the dormant assets for the purpose of unlocking benefits on the platform.
Let’s take a look at some of these benefits.
Accelerated Crypto Loans
Users of Bonded Finance would be able to add some of their coins that are just sitting around in a wallet and placed onto the Bonded network via the Ethereum blockchain. Once the assets are on the network, the ones with less liquidity can be used to create and unlock collateral loans. This is beneficial to the user as you can use your coins for a loan without the need to close your positions, especially if it’s a long term hold.
The Bonded Index
When assets are added to Bonded Finance, this helps generate a special pool that increases in liquidity as a whole as more and more people add to the network. When this liquidity is increased, this allows for high yield returns and benefits against fees and interest payments.
The LOC Index
Tokens on the Bonded Finance network will have the capability to be locked for additional features like Line of Credit (LOC). This is done through a two step process. The first step is by having the smart contacts verify the locked in assets while the second step requires to manually submit the request for the line of credit. This allows not just users to be able to take out LOCs for their own use, but also gives room to allow projects to take advantage of this which allows for faster growth.
Locked Collateral Synthetics
Bonded Finance has something called bETH, more technically known as Bonded ETH. This is a synthetic token that’s backed 1:1 by ETH which is minted upon the agreement of locked collateral. Smart contacts will take care of all the heavy work and users receive their collateral loans as bETH. Once the loans are repaid, the bETH tokens are then burned and users can get their collateral returned.
DeFi Another Day
It’s good to see a project like Bonded Finance have a unique use case and functionality. I know almost everyone probably has some coins laying around or some crypto they plan on holding for years that can take advantage of a project like this.
All in all, this project has a lot going for it right out of the gate with solid token economics, a good use case for old coins, lines of credit for both users and protects, plus benefits for adding to a liquidity pool like other yield farming projects. All this and it just started last month. At this point, the BOND token isn’t even listed yet.
It will be interesting to see what Bonded Finance has in store and looking forward to its rollout, very excited about this project considering it is so new and fresh. The current up and coming Public Sale will take place on November 15th and will allow users the ability to purchase 130m Bond. The sale will likely run from 15th to the 22th and will have around 130m BOND available for buyers to purchase. I will be taking part in this sale as this is one of my favorite projects that is releasing at the end of this year. I will update more details on telegram and twitter as they releases…
Regarding the metrics or “tokenomics,” let us commence with some of the basics.
Total Supply: 1,000,000,000
Initial Circulating Supply following our public sale: 325,000,000
Private Sale I: 20%
Liquidity Mining/Staking Rewards: 20%
Public Sale: 13%
Seed Round: 5%
Private Sale II: 2%
If you enjoyed this newsletter please make sure to sign up with your email address, it's free and I write newsletter content a few times a week! I enjoy writing these articles! If you would like to find out more about Bonded Finance, take a Deep Dive into who they are. You can head over to https://twitter.com/Bondedfinance or join their Community Channel on Telegram. Thanks again for all the recent support on these papers.