Bonding | HEDGE FINANCE
What is Bonding?
Bonding is an automated contract between you and Hedge finance. It allows Hedge to accept a singular token, in this case, HEDGE, BNB, or BUSD and mint the available supply of the new token to be distributed to holders.
Bonding as a mechanism is done to ensure that everyone gets a fair, and equal price of the upcoming token and to ensure that at no time does anyone receive a different ratio of price to anyone else, regardless of the time of bonding.
Why are we doing bonding in the first place?
We want to be fair to you and to everyone who has made Hedge what it is today. In order to do this, and maintain a completely “fair launch” this will effectively allow us to remove approximately 85% of Hedge off the market and completely stabilize the price.
This does a few things, but most importantly, gives us a baseline to value Hedge as a whole knowing that a majority of the market is now protocol owned in order to derive a correct valuation of the new token.
Why should I bond in BUSD or BNB?
As a new protocol, we are allocating a percentage of the total supply to people who want to stake BNB or BUSD into the protocol and receive the new token as well.
The reasoning behind this, it that it gives the protocol instant liquidity. This will allow us to do multiple things and in the next article when we discuss the liquidity pools, suicide compounding, and rewards this will make a whole lot more sense.
There will be a cap on the amount of BNB and/or BUSD the protocol will accept as a whole as well. Once that limit is reached, you will no longer be able to bond using anything besides Hedge.
How long is the Bonding period?
There will be 4 phases to the bonding mechanism Hedge will be launching. They are detailed below.
- Phase 1: Day 1 of Bonding will start at a specific date and time. We are WELL aware that we have users from all over the world and some of you may be sleeping. Phase one of the bonding mechanism will offer a few things and will be capped at 50% of the supply available. Once this 50% has been filled, the contract will not allow any more bonds for the day until the next phase opens.
- In phase 1, a 20% (Twenty Percent) discount/bonus will be given for your vesting period of 72 hours.
- Phase 2: Day 2 of bonding will start exactly 24 hours after Phase 1 has started regardless of if the Phase 1 bond has been completely filled or not. Phase 2 of the bonding mechanism will be capped at 25% of the supply available. Once this 25% has been filled, the contract will not allow any more bonds for the day until the next phase opens.
- In phase 2, a 15% (Fifteen Percent) discount/bonus will be given for your vesting period of 48 hours.
- Phase 3: Day 3 of bonding will start exactly 24 hours after Phase 2 has started regardless of if the Phase 2 bond has been completely filled or not. Phase 3 of the bonding mechanism will be capped at 25% of the supply available. Once this 25% has been filled, the contract will not allow any more bonds for the day until the next phase opens.
- In phase 3, a 10% (Ten Percent) discount/bonus will be given for your vesting period of 24 hours.
- Phase 4: Day 4 of bonding will start exactly 24 hours after Phase 3 has started regardless of if the Phase 3 bond has been completely filled or not. Phase 4 of the bonding mechanism will not be capped at any supply level until all remaining reserved tokens have been bonded.
- In phase 4, a 5% (Five Percent) discount/bonus will be given. During this phase, there will be a 24-hour lockup of your tokens until the entire bond has been bought.
How will actual bonding work?
The bonding process itself is very simple. It’s very similar to how you stake and un-stake Hedge currently. If you currently have your Hedge staked, there is nothing you need to do in the short term. 24 hours before we open the bonding mechanism, we will remove the tax in order to allow people to un-stake without incurring a 2% fee that is currently there.
Once those tokens are back in your wallet, you will head over to the new Hedge bonding page and you will see three options. Those will be to Bond Hedge, BNB, or BUSD. You will go ahead and click on the correct token you want to bond with, supply the number of tokens, and click bond.
That’s it. It’s literally that simple. What will then happen is your tokens will be sent to the contract and we will be in a waiting phase.
72 hours after the launch of the bonding mechanism bonding will close. In the rare case, we do not fill all bonds, it will remain open with a 5% discount until all bonds have been filled.
What if the bonding opens at a time that I simply can’t manage to make work?
Well, we have an amazing solution for that, and it’s something we’ve built right here at Hedge. As you know we have a sniper bot that is available to anyone who holds 100k tokens. If you are unable to make the time, you can use the sniper bot to snipe the bonding contract (cool as fuck honestly) to make sure you get in as early as physically possible. While you’re only going to be able to snipe the BNB Bond, it's a clear option and something that will work perfectly.