Bonding
The concept
Crypstarter DAO's secondary value accrual mechanism is bonding. Crypstarter can obtain its own liquidity and other reserve assets, such as BUSD, by selling CST at a discount in exchange for these assets. The protocol quotes the bonder on conditions such as the bond price, the number of CST tokens the bonder is entitled to, and the vesting duration. The bonder can collect portion of the incentives (CST tokens) as they vest, and the whole amount will be claimable at the conclusion of the vesting term.
Bonding is a active, short-term strategy. Bond discounts are more or less unexpected due to the secondary bond market's price discovery mechanism. As a result, bonding is seen as a more active investing method that must be regularly watched in order to be more lucrative than staking.
How It Works?
When someone buys a bond, the money goes to the Crypstarter treasury. A corresponding amount of CST will be minted and allocated to three parties:
Crypstarter may amass its own liquidity through bonding. We refer to our own liquidity as POL. More POL guarantees that our trading pools always have locked exit liquidity to assist market operations and safeguard token holders.
Since Crypstarter has become its own market, in addition to providing extra confidence for CST investors, the protocol has accrued an increasing amount of income via LP awards, reinforcing our treasury.
The Process
1
Connect your Metamask wallet using "Connect Wallet" button. Select the Network corresponding to the asset or LP token.
2
Go to the Crypstarter Finance bonding page here, then select the type of bond you would like to purchase for discounted CST.
3
If this is the first time you are bonding with the single asset or LP token, you will need to approve the transaction. Click on the "Approve" button and sign the transaction.
4
After the transaction is completed, you may enter the amount of Bond that you would like to purchase. If you would like to purchase all your available bonds, you may click on the "Max" button.
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Start Your
Investment now
Become Crypstarter Investor, start bonding now and stake to earn High APY.
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