Welcome to the final lesson in the ‘Lead-up to Staking’ unit. This lesson will discuss the concept of ‘bonding’ as it relates to the Abachi protocol. Once the application is live, the Academy will feature specific how-to demonstrations.
What is bonding, and what assets can I use to purchase Abachi Bonds?
‘Bonding is a system that is designed to aid in treasury growth, allowing users to purchase discounted ABI tokens in exchange for assets such as DAI or ABI/DAI LP tokens.’
Initial bond offerings will be in the form of either DAI or ABI/DAI Liquidity Provider (LP) tokens. Once these LP tokens are available for purchase, a video tutorial on ‘how-to-buy’ will be published.
How do investors purchase a bond?
To purchase a bond, investors will need to follow the steps below:
- Ensure that your wallet contains either DAI or ABI/DAI LP tokens.
- Visit the Abachi Web App, and navigate to the ‘Bond’ tab, using the button found on the left-hand side of the Dashboard Main Page.
- View the current bonding rates offered, and select the bond to be purchased.
- Approve the Bonding protocol to access either DAI or ABI/DAI LP tokens. (Approval on both the Web App and within the Metamask Wallet.)
- Complete the transaction by selecting the amount of DAI or ABI/DAI to contribute, confirming the transaction in the Metamask Wallet.
After purchasing a bond, the tokens are ‘locked’ and vested over a period of five days. With each passing second, a small percentage of the bonded tokens will become available to be claimed. This trickle of tokens will continue at a steady rate, until the five-day period is complete. To maximize rewards, it is recommended that tokens be claimed and staked before each rebase.
Why is bonding good for the investor?
Bonding allows investors to acquire ABI at rates below current market value, which increases their overall return on investment percentage.
Why is bonding good for Abachi?
Bonding deposits valuable assets directly into the treasury. Instead of purchasing ABI from a DEX, bonding skips the ‘middleman’ and supplies Abachi’s treasury with assets that appreciate over time, or that can be mobilized to gain yield and in turn, grow the treasury.
If you are new to bonding, be sure to stay tuned to the Abachi Academy website. We will be producing a variety of content in regards to this topic, from purchasing LP tokens to ensuring that you maximize your earning potential, you won’t want to miss what we have in store.
For further review, please see all of our previous lessons from this unit using the links below.
Staking – Lesson 1: What is a rebase?
Staking – Lesson 2: What are ABI, sABI and gABI?
