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 BOMB 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 BOMB tokens after a short vesting period. The LP shares you sell will be locked up by the protocol forever greatly increasing the health and long-term sustainability of the protocol. In return, you will receive BOMB tokens worth more than the value of the LP you locked.
For example, if you had 1 BOMB-BTCB-LP valued at $200 and used LP Bonding to sell that LP to the BOMB Money protocol, as a reward you would receive approximately 400 BOMB Tokens. Since BOMB tokens are currently valued at $0.54, you are actually receiving $216 back after the 14-day vesting period for an 8% profit in just 2 weeks.
It’s important to note that though the numbers used in the above example are accurate at the time of writing, they 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 BOMB 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 BOMB. Note that you can create additional Bonding positions and it will not reset the time of your previous positions.
