# Bonds Feature

#### <mark style="color:purple;">What is the Bonds feature</mark>

The main purpose of bonds is to allow Shade Protocol to acquire more assets (e.g., other cryptocurrencies) for its treasury by offering SHD tokens at a discount rate. This helps increase the backing and value of the SHD token.

For example: Let’s say that Shade wants to reduce the supply of Silk in circulation. You could sell your Silk - release it into this bond, and then receive SHD at a discount in a specified time period (maybe 30 days)

#### <mark style="color:purple;">**How it works:**</mark>

A. Users deposit a supported cryptocurrency (e.g., USDC, ETH) into a bond opportunity on the Shade Protocol app.

B. After a vesting period (e.g., 30 days), users can claim the bond rewards, which are SHD tokens received at a discounted rate compared to the market price.

C. The discount rate incentivizes users to participate in bonds, allowing Shade Protocol to accumulate more assets in its treasury.

#### [<mark style="color:purple;">**https://youtu.be/pszuQORr30g**</mark>](https://youtu.be/pszuQORr30g)

{% embed url="<https://youtu.be/pszuQORr30g>" %}

#### <mark style="color:purple;">**Key steps:**</mark>

[Purchase a bond:](https://shadeprotocol.io/shade-guide/how-to-purchase-a-bond) Users select a bond opportunity, specify the amount of input asset (e.g., USDC) they want to deposit, and create a viewing key for the input asset.

[Claim bond rewards](https://shadeprotocol.io/shade-guide/how-to-claim-a-bond): After the vesting period, users can claim the SHD token rewards by creating a permit, approving the transaction, and claiming the rewards.

***

*Information provided in this post is for general informational purposes only and does not constitute formal investment advice. Please read the full disclaimer at* [*shadeprotocol.io/disclaimer*](https://shadeprotocol.io/disclaimer) *before relying on any information herein.*


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