Hey Team! Joe here from Bond Protocol. Thanks for the consideration of us to assist with POL and liquidity consolidation.
Our bond markets are agnostic to ERC20 quote asset intake into treasuries, so weād first want to align on that:
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ETH - most of our recent POL deployments, Like Pendle, have opted for ETH bonds. It is more widely held than LP tokens, leading to lower barrier entry and generally tighter discounts. You can pair with treasury HOP for POL in key/consolidated pools and use our callback contract functionality to automate this. ETH just gives the most flexibility for liquidity use cases.
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LP Tokens - you would source LP tokens from existing LPers, but any ānewā bonders would need to create the LP token to participate, which would be a few txn barrier before participating in the program. You also get more exposure to HOP, vs net-new ETH.
We recommend focusing on a single market type/use case to start, with conservative capacity for vested HOP issuance. Esp if weāre deploying on an L2 (Arbitrum), we can launch markets as small as we would want (e.g. $15K, 2 wk market) to gauge demand and monitor performance; we can then ramp capacity as needed or introduce new use cases and concurrent markets. 14d vesting is our āstandardā for POL bonds though we can increase to 21d, 28d vestingā¦but we would suggest gauging initial demand before doing any long-term issuances (30d+ vesting). Start small, scale up is our recipe for partner success and allows our partners to proof-of-concept our platform with minimal commitment.
Acquired assets from bonders are immediately transferred to the provided HOP treasury address (permanently owned); community bonders are granted the tokenized bonds immediately but cannot claim until the completion of the vesting period.
KPIās we would look to for the bond program:
- Avg Discount @ point-of-bonding (exchange rate, effectively HOP ROI)
- Total Bonded Value
- Unique Bonder addresses
- Post-vesting conversion rate (LPāing? Selling? Staking?)
Assuming the initial bond program meets targets, we would advise ramping capacity or exploring new Bond Market use cases - again, we can support any ERC20 quote/payout asset market for bonds, and you can create/modify/cancel markets at any time.
Please let us know if you have any specific questions on how this will work and we can dive into more details!