Shade Bonds are a privacy-preserving DeFi instrument where users can purchase SHD or other protocol owned assets at a fixed spot price, without incurring slippage, from the ShadeDAO. Shade Bonds empower you to safely lock their crypto-assets into one of the SHD bonds smart contracts for a specified lock-up period, and earn yield from the ShadeDAO. The optimal outcome for users who purchase Shade Bonds is that the price of SHD remains the same or increases during the lock-up period.
ShadeBonds are a powerful and efficient DeFi primitive that will help bootstrap, scale, and grow the ShadeDAO, and if balanced properly, can be the protocol’s primary tool for gathering protocol owned liquidity, yield, and stability for Silk and other key primitives. In the future, bond issuance could use other uncorrelated assets from the treasury to rebalance and modify the existing portfolio composition of the ShadeDAO. Shade Bonds also provide another revenue stream for the ShadeDAO, as certain assets such as LP tokens and staking derivatives generate income, which ultimately gets distributed to SHD stakers.