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Bonds

As part of ApeSwap's initiative to ensure the long-term health of our protocol while offering new ways for our partners to generate sustainable liquidity, we've created a new product: ApeSwap Bonds.

How Bonds Work

Inspired by a combination of TradFi, DeFi, and NFT products, Bonds allow users to access tokens at a discount in exchange for their liquidity provider (LP) tokens, or in exchange for single assets like blue chip tokens or stable coins. Each Bond is a unique NFT that represents the output tokens (BANANA or partner project tokens), which vest over a certain amount of time.
Liquidity Bonds allow users to sell their LP tokens to receive an NFT that represents BANANA tokens or partner project tokens at a discount, vesting over a certain period of time.
Reserve Bonds allow projects to diversify their treasuries by selling NFTs that represent their native token at a discount that vests over time, in exchange for a single asset such as a blue chip token or stablecoin.

Protocol-Owned Liquidity

The goal of ApeSwap Bonds is to source sustainable liquidity for the ApeSwap DEX and for partner projects, solving many pain points in the current liquidity renting model used by the vast majority of the DeFi industry. Bonds allow ApeSwap to own the liquidity created through the sale of Liquidity Bonds that vest BANANA, and allow ApeSwap's partner projects to own the liquidity created through the sale of their own Liquidity Bonds.
ApeSwap Bonds, when combined with both Yield Farming and Staking Pools, can be used to create an end-to-end sustainable liquidity mining program for our partner projects.

ApeSwap Bond NFTs

When a user purchases a Bond, they receive an NFT that represents the discounted tokens as they vest over time. The holder of the NFT is the only one who can claim tokens as they vest. Each Bond NFT consists of a combination of five procedurally-generated characteristics:
  • The Certification: The frame color around the legend reflects the purchase amount, ranging from bronze to diamond for the highest-value NFTs.
  • The Legend: The trailblazers of cryptocurrency, including Bitcoin founder Satoshi Nakamoto, Ethereum co-founder Vitalik Buterin, and Lighting Labs CEO and founder Elizabeth Stark.
  • The Location: Digital and physical spaces which created early use cases for cryptocurrency, such as The Silk Road, The Sandbox, and Switzerland’s Crypto Valley.
  • The Moment: Key developments which helped to shape where the cryptocurrency atmosphere is today, including the Bitcoin hard fork, the moment when Tesla began accepting Bitcoin for purchases, and Bitcoin becoming legal tender in El Salvador.
  • The Trend: Trends which developed further utility and use cases for cryptocurrency, including the HODL phenomenon, GameFi, and (naturally) NFTs.
Last modified 3mo ago