Bonding

What is bonding?

Bonding is the secondary value accrual strategy of DaoWaBunga. It allows DaoWaBunga to acquire its own liquidity and other reserve assets such as BUSD/WBNB by selling DAWA at a discount in exchange for these assets. The protocol quotes the bonder with terms such as the bond price, the amount of DAWA tokens entitled to the bonder, and the vesting term. The bonder can claim some of the rewards (DAWA tokens) as they vest, and at the end of the vesting term, the full amount will be claimable. Bonding page Can be found here.

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.

Bonding allows DaoWaBunga to accumulate its own liquidity. We call our own liquidity Bank. More Bank ensures there is always locked exit liquidity in our trading pools to facilitate market operations and protect token holders. Since DaoWaBunga becomes its own market, on top of additional certainty for DAWA investors, the protocol accrues more and more revenue from LP rewards bolstering our treasury.