Assent Protocol

Bonding (1,1)

What is Bonding?

Bonding is one of the value accrual strategies of Assent Protocol. It allows Assent to acquire its own liquidity and other reserve assets such as stablecoins (USDC at launch on Fantom) and bluechips (BTC, ETH, BNB) by selling $ASNT at a discount in exchange for these assets. The protocol provides the bonder with a quote, which includes terms such as: the bond price, the amount of $ASNT tokens entitled to the bonder, and the vesting term. The bonder is allowed to claim some of the rewards ($ASNT) as they vest, and at the end of the vesting term, the full amount will be claimable.
Bonding is considered a more active investment strategy and thus should be monitored constantly in order to be more profitable as compared to staking.
Bonding provides the Assent Protocol with a perfect opportunity to acquire more liquidity. We call this POL (Protocol Owned Liquidity). More POL ensures investors with more exit liquidity and less price impact on buy and sell orders.
Finally, Bonding is also the way Assent Protocol acquires its treasury. All stablecoins and bluechips assets used to buy bonds go into the protocol treasury contract. This treasury is mainly used to backup $ASNT floor price and to keep an ever increasing floor price.