MyTrade has borrowed the innovative Bonding feature from Olympus DAO and brought it to our DEX. You can find the Olympus DAO app and their bonding feature here: https://www.olympusdao.finance/
Bonding is the process of trading an LP share in exchange for a native project token like MYT. Bonding is an alternative strategy compared to mining incentives to attract TVL.
How does it work?
Assume MYT price is $0.05 and the MYT bond price is $0.04.
Scenario A (Buying MYT)
A User has 1000 USDT and wishes to buy MYT. At the current market price, they can buy 20,000 MYT.
Scenario B (Bonding)
The User can instead use their 1000 USDT to exchange for equal values of MYT and MATIC. Then they can add liquidity to the MYT/MATIC LP and receive MYT/MATIC LP Tokens. Finally, they can swap their LP tokens for an MYT bond at a price of $0.04. Ultimately, they end up with 25,000 MYT (7 day linear vesting terms).
We can see that Bonding in Scenario B gives the User 5000 more MYT with the same amount of starting capital. It is important to note that supply and demand determine the bond price. If demand for a bond is high, the bond price will be higher and vice versa. The bond will end when the Total Bonded Value (TBV) is full or when there is no more demand (MYT bond price falls down to 0).
Try Bonding on MyTrade today at https://mytrade.org/bond. Our first Bond is a MYT-MATIC Bond available on Polygon network!