What is LP Bonding?
LP Bonding is an exciting new offering from the BOMB Money team that incentivizes users to sell the protocol their LPs in return for discounted B2SHARE tokens. These LPs will support us in building protocol-owned liquidity. Having a large protocol-owned liquidity pool is integral for the success of any DeFi protocol, which is why in addition to many other already-running processes, we are introducing LP Bonding.
Bonding is the process of selling your LP shares to the protocol and receiving discounted B2SHARE tokens after a short vesting period. The LP shares you sell will be locked up by the protocol greatly increasing the health and long-term sustainability of the protocol. In return, you will receive B2SHARE tokens worth more than the value of the LP you locked.
For example, if you had 1 BOMB-BTCB-LP valued at $90 and used LP Bonding to sell that LP to the BOMB Money protocol, as a reward you could receive 1 B2SHARE. In this example, B2SHARE tokens are valued at $100, you are receiving a $10 discount (10%). After the vesting period, you can collect your discounted B2SHARE!
It’s important to note that though the numbers used in the above example are for demonstration purposes only. Actual discounts can fluctuate depending on supply and demand. However, you can always see the % discount being offered before you supply your LP.
LP Bonding is an amazing way for you to earn extra money from your LP tokens AND help the protocol by increasing its owned liquidity!
So how do you get started?
The easiest way to get started is by creating your LP position and then using our simple bonding page. Let’s walk through the few steps.
Since bonding is more of an advanced product, we will assume you have some DeFi knowledge already. If you don’t know how to get a DeFi wallet or purchase crypto, watch the 3 easy-to-follow videos here first and get started in minutes.
- Using the liquidity tab on the BOMB Swap page, add an equivalent amount of BTCB and BOMB then click “Confirm Adding Liquidity”.
- Confirm the transaction on your DeFi wallet and it will now hold the LP.
- Go to the BOMB Money Bonding page and click “Deposit”. A window will pop up and ask how many LP tokens you want to deposit while also showing how many B2SHAREs you will receive. Enter your desired amount and hit “Confirm”.
That’s it! You will now see your Bonding positions on this page along with the remaining vesting period. You can return to the Bonding page at the end of the vesting period and claim your B2SHARE. Note that you can create additional Bonding positions and it will not reset the time of your previous positions.
