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Bonding

2021/11/24 Updates:

We Introduced the (4,4) bond on 11/24. You can review the details in our medium post.

What is bonding

Bonding is the secondary value accrual strategy of OtterClam. It allows OtterClam to get its own liquidity and other reserve assets such as MAI by selling CLAM at a discount in exchange for these assets. The protocol quotes the bonder with terms such as the bond price, the amount of CLAM tokens entitled to the bonder, and the vesting term. The bonder can claim some of the rewards (CLAM 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.
Bonding allows OtterClam to accumulate its own liquidity. We call our own liquidity POL. More POL ensures there is always locked exit liquidity in our trading pools to help market operations and protect token holders. Since OtterClam becomes its own market, it will provide extra certainty for CLAM investors. The protocol accrues more and more revenue from LP rewards bolstering our treasury.