MonoX 2.0 Bonding
What is bonding?
Bonding is a protocol mechanism designed to accumulate treasury assets via the sale of the protocol token. Users are able to purchase protocol tokens at a discount using specific assets. The user is paid out by the protocol according to preset and agreed-upon conditions. In the case of MonoX, the protocol will be launching bonds denominated in vUNIT.
MonoX 2.0 will allow users to sell their LP tokens or certain assets back to the protocol in exchange for vUNIT, the protocol’s reserve currency. This process will occur using a bonding curve that sells vUNIT to the user at below market price. Users who sell LP tokens back to the protocol using the bonding curve will receive vUNIT through a 7-day vesting schedule. We also offer 30 day and 1 year vesting options for better pricing incentives. vUNIT is backed by the assets in the liquidity pools and can be staked natively on MonoX. This bonding mechanism combined with vUNIT staking creates an opportunity for users to offload LP risk while gaining access to liquidity and high APYs.
Many existing bonding protocols are unsustainable in emissions and yields. MonoX 2.0 solves this by offering sustainable yet attractive yields from our protocol revenue.
How do you bond?
- Navigate to the bonding page.
- Connect your wallet
- Select an asset by clicking on the green “bond” button
- Enter your desired quantity to bond
- Review transaction outcomes
- Approve the transaction
Types of bonds?
- Tokens
USDT and USDC bonding will kick-start token liquidity.
2. LP Tokens
vUNIT-USDT bonding will allow users to offload LP risk and access high APY’s.
Walkthrough with Screenshots
From our homepage you can access bonds either from the top navbar or select from the bonds on offer based on the asset you wish to bond
When navigating away from the home page you can also view bonds and their discounts via side navigation
Select the token you want to bond. In this example, we’ve selected the vUNIT — USDC LP. If you don’t have vUNIT — USDC LP tokens, you can click Get LP Token (as underlined above), which will redirect you to Sushiswap:
You may need to purchase:
vUNIT: 0x632fbF85F77978437073a8CE5CEEC29e3209514c
USDC: 0x2791bca1f2de4661ed88a30c99a7a9449aa84174
Additional Notes:
- Due to heavy congestion, you may need to set your gas fee higher before submitting the transaction on Polygon or it will fail
- If the transaction remains pending, consider speeding up the transaction
- Depending on RPC performance, you might need to refresh the page to see the changes after a transaction is complete.
Once you have vUNIT — USDC LP, select the amount that you wish to bond and approve the transaction. Accept the terms of approval on Metamask:
After your transaction has been approved, Click Bond
Congrats! The bond dashboard should now display the bonds and their vesting periods.
Staking (3,3)
We have been inspired by the creation of popular reserve currencies like OHM and TIME, however, they lack proper utility except for (3,3). The problem with most (3,3) protocols is that they do not offer any additional value creation through protocol functionality.
Users who use protocols such as Olympus and Wonderland are only able to bond and stake. Over time these protocols consistently buy assets below market value through bonding and inflate their own supply through staking rewards.
The bonding mechanism allows users to purchase OHM at a discounted price while the protocol purchases assets above their market value using OHM. As a result, the real price paid to acquire the treasury assets will be of greater value than the assets in the treasury. This results in a mercenary capital problem and forces users to pay a premium.
We believe a product that utilizes Bonding Mechanics + an Additional Feature will be able to rid the user of premiums. The additional feature will complement the bonding mechanism and protocol-controlled liquidity in order to provide long-term stability for users and the protocol.
MonoX 2.0 will launch with bonds denominated in discounted vUNIT (our reserve currency) allowing the acquisition of protocol-owned liquidity. Protocol-owned liquidity will be held in the MonoX treasury. vUNIT will have utility in addition to it being the backbone of the MonoX AMM.
We see the value of creating a reserve currency that is not only used for our single-sided liquidity pools, by creating a ‘virtual pair,’ but also as a free-floating algorithmic reserve currency drawing intrinsic value from the assets in our treasury.
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