Bond

What is bonding?

Crypstarter DAB's secondary value accrual mechanism is bonding. Crypstarter can obtain its own liquidity and other reserve assets, such as UST, by selling CST at a discount in exchange for these assets. The protocol quotes the bonder on conditions such as the bond price, the number of CST tokens the bonder is entitled to, and the vesting duration. The bonder can collect portion of the incentives (CST tokens) as they vest, and the whole amount will be claimable at the conclusion of the vesting term.

Bonding is a active, short-term strategy. Bond discounts are more or less unexpected due to the secondary bond market's price discovery mechanism. As a result, bonding is seen as a more active investing method that must be regularly watched in order to be more lucrative than staking.

Crypstarter may amass its own liquidity through bonding. We refer to our own liquidity as POL. More POL guarantees that our trading pools always have locked exit liquidity to assist market operations and safeguard token holders. Since Crypstarter has become its own market, in addition to providing extra confidence for CST investors, the protocol has accrued an increasing amount of income via LP awards, reinforcing our treasury.