💲Bonds Feature

What is the Bonds feature

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)

How it works:

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.

https://youtu.be/pszuQORr30g

Key steps:

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: After the vesting period, users can claim the SHD token rewards by creating a permit, approving the transaction, and claiming the rewards.

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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 before relying on any information herein.