The EGIS bond is the mechanism used to raise select assets – such as FTM or EGIS-FTM LPs – for the treasury. Users that want to purchase EGIS should first check if they can get a discount by buying a bond, and if not, purchase from LP. When users buy bonds, the EGIS purchased is vested linearly over several days. In most cases it's better to purchase a bond than to buy EGIS from the market, but other times the market trades at a lower price than bonds.
The main benefit of a bond is price consistency. Users that purchase bonds commit capital upfront, and they will receive a predetermined amount of EGIS as the bond fully vests. A bond's profit depends on the price of EGIS when the bond fully vests. Bonders benefit from a rising or static EGIS price.
Bonding is the secondary value accrual strategy of Divine Creatures DAO.
When users purchase EGIS tokens, they are actually selling their assets in order to buy a bond from the protocol. Bonding Actions are a cross between a fixed income product, a futures contract, and an option. The protocol quotes the bonder with terms for a trade at a future date. These terms include a predefined amount of EGIS the minter will bond and the time when vesting is complete. The bond becomes redeemable as it vests, i.e. in a 5-day term, after 2 days into the term 40% of the rewards can be claimed.
Bonding is an active, short-term strategy.
The price discovery mechanism of the secondary bonding market renders bonding discounts more or less unpredictable. Therefore, bonding is considered a more active investment strategy that needs to be monitored constantly in order to be more profitable – compared to staking.
Allowing users to purchase bonds through spawning allows Divine Creatures DAO to accumulate its own liquidity.
More liquidity ensures there is always locked exit liquidity in our trading pools to facilitate market operations and protect token holders. Since EGIS becomes its own market, (protocol-controlled Value, aka Owns Its Own Liquidity) on top of additional certainty for EGIS investors. The protocol accrues more and more revenue from LP rewards, thereby bolstering our treasury.
All our NFTs carry bonding boosts, with max total boost of 25% on your bond discounts if you hold sufficient number of NFTs.
If your base Bond Discount is ~20%, and your total NFT bonding boost is 10%, that means your Bond Discount is 22%.
Only one bond can be held in one wallet at a time. If attempting to bond an additional sum on Divine Creatures DAO app, then your vesting period will be extended. We recommend claiming rewards first but if you choose not to it will simply be extended to.
Here is an example:
Your initial bond cost 20 FTM and will mature granting your 1 EGIS in 5 days. Today is day 2 and you have 0.2 EGIS claimable and 0.8 EGIS vesting; you now wish to purchase another bond for 20 FTM, but today the ROI is less and will only grant you 0.5 EGIS. However, let's assume you still think this is a good choice. So, first you claim the 0.2 EGIS, so you don't lose that reward. Then your new bond is created and in 5 days you will be able to claim 0.7 EGIS (0.5 delayed + 0.2).