Chicken Bonds Launch
New bonding mechanism powered by Liquity.
DETAILS
- Chicken Bonds is a bonding mechanism where users acquire ‘bTokens’ (derivative asset) at a discount upon depositing yield bearing tokens
- Unlike other bonding mechanisms, the bonded tokens perpetually accrue yield and are always withdrawable
- For protocols, Chicken Bonds offer a new way to bootstrap Protocol Owned Liquidity/Treasury via boosted bonds
- For investors, Chicken Bonds offer amplified, auto-compounded yield tokens at a discount, which can either be held or traded
- Chicken Bonds are represented as on-chain dynamic NFTs that changes based on the users’ actions;
- an egg (while bonding)
- a chad chicken (after claiming the bond – “Chicken In”)
- a run-away chicken (after canceling the bond – “Chicken Out”)
- Chicken bond NFTs are transferrable and can be sold on secondary marketplaces e.g. OpenSea
- NFT transfers are disabled for the first 24 hours after a Chicken In or Out
- Chicken bonds will first be available for LUSD (Liquity’s stablecoin) and then will launch “Generalised” Chicken Bonds for protocols/DAOs in Q2 2023
- To create and earn with LUSD Chicken Bonds,
- you’ll need some LUSD. You can obtain LUSD by opening a Trove in Liquity and borrowing LUSD against ETH, or purchasing it on a DEX such as Curve or Uniswap
- Bond LUSD in exchange for bLUSD (boosted LUSD) or buy bLUSD from the bLUSD-LUSD Curve v2 pool – no maturity and no lock up
- Claim bond (‘Chicken In’) any time and get the accrued bLUSD in exchange for your deposited LUSD
- Cancel bond (‘Chicken out’) anytime and reclaim your principal
- Sell bLUSD and re-bond or just hold bLUSD and benefit from the amplified yield
- No limit on how many bonds can be created per wallet
Blockchain
