Koi Bonds

Info

Bonding is the process of trading KOI-ETH LP share to the Koi DAO for KOI. The protocol quotes an amount of KOI and a vesting period for the trade. It is important to know: when you purchase a bond, you are selling your LP share/tokens. The Koi DAO compensates you with more Koi than you’d get on the market, but your exposure becomes entirely to Koi and no longer to KOI-ETH LP.

The purpose of Koi bonds is to increase the amount of Protocol Owned Liquidity via the Koi DAO which increases the revenue towards the treasury and long term liquidity for the protocol. The benefit to bonding allows a user to purchase Koi at a lower cost basis. Bonds are sold at a first come first serve basis. A bond ROI starts at 0% and increases slowly until it is purchased. Once purchased, the cycle is reset with a new bond and Koi is paid out over 7 days via a veKOI lock. Learn more about veKoi mechanics here.

Example

Exchanging $15k worth of KOI/ETH LP with a bond that currently has a 15% ROI. Bonding would sell the $15k KOI/ETH LP tokens to the Koi DAO and in exchange receive Koi tokens with an underlying Koi value of $15k * 1.15 = $17.25k worth at the time the bond was purchased. The Koi is locked for 7 days.