Benefits Of Bonds

There are several benefits to using Bonds:

Any denom is usable. A Maker can offer any denom on the Kujira chain in exchange for any other. These include LP tokens, LST tokens and xAssets. They are not limited to trading pairs on a DEX or stablecoins as payment.

Circulation is controlled. The Maker stipulates the distribution schedules of the offered bTOKENs. However, purchase denoms from Takers are received immediately.

Price impact is negligible. Token distribution schedules mitigate the impact of the tokens in a bond on the circulating supply, negating the shock a sudden influx of tokens into the market may have.

No up-front costs. Bonds carry a commission on completion of a transaction, meaning participants only pay when Bonds are bought. There’s no up front cost and no flat fee. You pay for what is used, when it’s used, at a set commission. Makers pay 0.75% of the sale. Takers pay 0.5% when redeeming a mature bond. Preferred partners receive preferential rates.

No slippage. The deal Maker sets the price when they create the bond. There’s no slippage nor is there price fluctuation.

No predetermined size. Bonds of any value and duration can be created. Makers can create several small Bonds as needs be for short term requirements, or larger long term deals to fund significant capex-heavy projects.

Community involvement. Bond deals allow projects to directly involve their public. The Maker can incorporate feedback from their community into the variables, using demand as a real time feedback-loop.