Introduction

What is BondSwap?

When DeFi protocols are looking to scale their operations but have no way of raising funds post-IDO, they can hold a large amount of their own governance tokens in their treasury and offer them for sale using an NFT bond via BondSwap. The contract is created on BondSwap and new NFTs (bonds) can be minted. Once minted, the NFTs will emit the tokens over a selected period of time at a predetermined yield.

But BondSwap is not limited to only DeFi platforms. Anyone can create their own bonds with any token they want. Once someone creates a bond, others can mint the bond using either Ethereum or an ERC-20 token that the creator wants to accumulate. Once the bond (NFT) is minted, the emission schedule for the tokens tied to the NFT will begin. The frequency and amount of yield will be determined by the creator when creating the bond.

The emissions for bonds will be pre-determined by the creator offering the bond. At the time of creation, the creator will set the maturity date. If a bondholder wishes to sell their bond before it reaches maturity, they can do so like any other NFT. If someone were to purchase that bond, they would receive the remaining yield within the bond until it reaches maturity.