tl;dr: auto-staking and flexible vesting
We are proud to announce the release of V2 bonds coming to our dApp with two major upgrades — auto-staking and flexible vesting. These updates provide improvements compared to V1 bonds and allow for a more accessible bonding experience with less cost and greater flexibility for all Ohmies.
What is a Bond?
First, let’s explain what bonds represent in the Olympus ecosystem and how they are profitable to bonders and the treasury. By buying a bond from the Olympus Treasury, you as the purchasing party are essentially paying a discounted price to receive more $OHM at the end of your vesting period.
Let’s say hypothetically you had $1,000 USD in ETH and wanted to buy a 4% OHM-ETH 5-day bond when the price of 1 $OHM token was also equal to $1,000. You would purchase the bond for $960 dollars in ETH and receive $1,000 dollars in $OHM when your vesting period was through. The positive number “discount” is the percent discount you get when you bond tokens into the protocol.
V2 Bonding Upgrades
Let’s expand a bit on some of the upgrades that are being made to our bonding mechanism. There are some we have touched on already, but other factors have yet to be discussed which carry extra perks.
- Auto-staking. Bonds now auto-stake fully and your balance is locked for the duration of the bond. This means that the bonds no longer vest linearly and you will earn the discount and the rebase rewards for the full duration of the bond with one click. This will save you time, gas, and increase accessibility for Ohmies who may have been priced out due to higher ROI on staking or high gas fees.
- Flexible Vesting. V2 will introduce Fixed-Term and Fixed-Expiration Bonds and have multiple different vesting terms as opposed to V1, which were all held for 5 days. Further, you will be able to hold multiple types of bonds for the same assets in V2 (for example, you can now hold a 3-day and 60-day DAI bond).
In our pursuit to remain at the forefront of innovation, we’re excited that the DAO has continued to build on the foundation of Olympus and will be integrating this upgrade on Olympus Pro very soon.
Olympus is a decentralized financial reserve protocol that provides sustainable compounding interest through its community-owned and protected treasury.