With Options Liquidity Mining (OLM) now live, let's reevaluate how our products drive sustainable treasury growth and explore their use cases, mechanics, and tradeoffs 👇
Permissionless Bonds ⚙️
Bonds provide a mechanism for projects to issue vested tokens and acquire assets quickly. Within the market, bonders exchange one asset for another vested asset at a specified discount.
Deployment is fully permissionless through our dApp and versatile through configurations like vesting type (Fixed-Term or Fixed-Expiry), duration, capacity, and auction type (Sequential Dutch, Fixed-Price, or Oracle-based).
Use cases include acquiring POL, diversifying treasuries and extending runway, funding growth initiatives, and securing strategic assets. Markets deployed by projects like
@GMX_IO,
@JPEGd_69, and
@TheTNetwork are prime examples of the above.
OLM ⛏️
OLM provides protocols with customizable ERC-20 call options (oTokens) as incentives. Configurations include quote asset, payout asset, strike price, epoch length, and eligibility window.
Similar to bonds, OLM deployment is fully permissionless. We provide ready-to-use contracts for liquidity mining (auto-create tokens and issue), exercising, reclaiming, minting, and redeeming — making it a seamless process to adopt OLM.
oTokens can replace any common emissions source such as Pool2/Liquidity mining, bribes, and internal protocol mechanisms. The advantages include:
1️⃣ Cost-Effective Token Emissions: Issuers acquire assets when oTokens are exercised, channeling value back to the treasury and mitigating the impact of token emissions.
2️⃣ Enhanced Treasury Management: Issuers can diversify their treasuries by acquiring various assets like stablecoins,
$ETH, LP tokens, or strategic assets like
$CVX, strengthening financial stability and providing a means to manage treasury composition.
The initial protocols to implement OLM into their core tokenomics are @Rodeo_Finance,
@unsheth_xyz, and
@thestandard_io.
Choosing Between Bonds and OLM ⚖️
Both tools serve similar purposes in channeling assets into treasuries, but they cater to different aspects of a project’s growth, treasury management, and tokenomics strategies.
Here’s the TLDR:
Bonds:
• Ideal for projects aiming for gradual or aggressive asset acquisition
• Integrated into treasury management strategies
• Open to any participant interested in exchanging the selected assets within a market
OLM:
• Ideal for projects aiming to enhance a new or existing incentivization program
• Acquires assets gradually as oTokens are exercised, integrating with treasury management strategies and core tokenomics.
• Rewards are gated and exclusive to participants with skin in the game.
• Configuration and deployment of oTokens requires more technical overhead
If you're considering Bonds, OLM, or both for your project but have more questions, reach out here:
bondprotocol.finance/hello