# Bonding

## What is bonding?

**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.

![Our Bonding page on Test Net](https://2792200547-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FIEZ7aydtAcYcjjUB64lk%2Fuploads%2F4J4QP5RrjciyEvcA5qpt%2Fimage.png?alt=media\&token=e84cb49c-757e-4e8f-a79e-ad8fcd62e469)
