Introducing 4,4 bonding for Vikings.Finance
We are very happy to announce that our long awaited 4,4 bonds are now live at vikings.finance
The (3,3) concept in the world of reserve backed currencies is one in which market participants working together can achieve optimal outcomes. It was brought to the forefront by the godfather of reserve backed currencies in OHM. As a result by now, most of us know the concepts, bond to mint new tokens, which add value to the protocol treasury and then stake these newly minted tokens to see further value accrual.
(4,4) bonds take traditional reserved backed currency bonding techniques to the next level. Tokens minted through bonding are vested, these vested tokens are paid in the form of unstaked tokens. To optimise APY users need to claim and stake tokens. (4,4) changes this, users are paid in tokens already staked, meaning they are getting optimal APY at all times. If users don’t claim and only claim once at the end of their vesting period (or beyond) they continue to get the best APY.
A bonding discount, best possible APY and a completely automated process, what’s not to like!
(4,4) with Vikings.Finance
Our first (4,4) bonds will be for AVAX. Users will be able to purchase staked $VAL at a discount using AVAX. As per Vikings Improvement Proposal 2 the vesting period for these bonds will be 10 days. An added benefit of this is that when bonding and minting tokens, users experience no price impact!
These AVAX bonds will help build the treasury for Vikings.Finance, growing the backing for the $VAL token. Importantly the AVAX will be able to be used in our upcoming Automated Market Maker Exchange. These tokens will be able to be transferred to yield bearing assets AND LP tokens. Further aiding treasury growth though interest and AMM trading fees.
Protocol Owned Interest Bearing Liquidity and an AMM
As a reserve backed currency, Vikings.Finance is working hard to continue to grow and actively manage our treasury. A growing treasury can occur through bonding, but with bonding comes dilution of existing holders. Without other means to build value can lead to the downfall of some reserve backed currencies.
We have had a number of VIPs as to how to spend our treasury, and have these in place. Additionally these gains are not only compounded back into the treasury itself but (again via community input from a VIP) a portion is also paid to our community in the form of $MIM dividends.
A key piece to our vision of a growing treasury is the development of an AMM. With Vikings.Finance owning its own liquidity on the VAL/MIM pair as well as bonded single assets, we are in a great position. All trading through this AMM will incur fees, that will be captured by the treasury (further building it, with a share paid out as dividends). With our low trading fee, we aim to generate good volume through common pairs within the Avalanche ecosystem.
But it doesn’t stop there. Assets within an LP usually lay dormant, waiting for trading volume to make fees. Our AMM will use a metarouter, to allow our LPs to be interest bearing. Assets within the pair, will be lent out on Eleven.Finance where they accrue interest, when needed for trading these will be withdrawn and swapped. This all happens in the background making the AMM user experience the same as any other on the front-end for individual users, arbitrage bots or DEX aggregators alike.
We’re excited to not only unveil (4,4) bonding today, but what the future will bring!