Bonding
Last updated
Last updated
Bonding is the secondary value accrual strategy of Pegasus. It allows Pegasus to acquire its own liquidity and other reserve assets such as USDC by selling SUS at a discount in exchange for these assets. The protocol quotes the bonder with terms such as the bond price, the amount of SUS tokens entitled to the bonder, and the vesting term. The bonder can claim some of the rewards (SUS tokens) as they vest, and at the end of the vesting term, the full amount will be claimable.
Bonding is an active, short-term strategy. The price discovery mechanism of the secondary bond market renders bond discounts more or less unpredictable. Therefore bonding is considered a more active investment strategy that has to be monitored constantly in order to be more profitable as compared to staking.
Example of Bonding. When users bond to the protocol, it allows the DAO’s Treasury to acquire stable/valuable assets such as USDC, DAI, and LP in exchange for offering $SUS at a discount. The user can claim this discounted $SUS over a 5-day vesting period, every 8 hrs.
For example: Give PegasusDAO $100 in USDC, and we’ll return $150 worth of SUS (valued at the time of bonding) over 5 days.
