What is the Bonds feature

The main purpose of bonds is to allow Shade Protocol to acquire more assets (e.g., other cryptocurrencies) for its treasury by offering SHD tokens at a discount rate. This helps increase the backing and value of the SHD token.

For example: Let’s say that Shade wants to reduce the supply of Silk in circulation. You could sell your Silk - release it into this bond, and then receive SHD at a discount in a specified time period (maybe 30 days)

How it works:

A. Users deposit a supported cryptocurrency (e.g., USDC, ETH) into a bond opportunity on the Shade Protocol app.

B. After a vesting period (e.g., 30 days), users can claim the bond rewards, which are SHD tokens received at a discounted rate compared to the market price.

C. The discount rate incentivizes users to participate in bonds, allowing Shade Protocol to accumulate more assets in its treasury.

Key steps:

Purchase a bond: Users select a bond opportunity, specify the amount of input asset (e.g., USDC) they want to deposit, and create a viewing key for the input asset.

Claim bond rewards: After the vesting period, users can claim the SHD token rewards by creating a permit, approving the transaction, and claiming the rewards.

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Information provided in this post is for general informational purposes only and does not constitute formal investment advice. Please read the full disclaimer at shadeprotocol.io/disclaimer before relying on any information herein.