We are excited to announce that we are co-leading Bond Protocol’s Seed Round alongside our friends at IDEO. We will be working very closely with the founding team, alongside a strong group of investors and friends at Alchemy Ventures, Hypersphere, and strategic angels.
The Evolution of DAOs and DeFi Tokens
DAOs have changed the way in which communities participate in public goods, but token issuances and preservation mechanisms are nowhere near from perfect.
Liquidity mining was one of the first examples to incentivize on-chain liquidity for native governance tokens but began to show its faults as markets matured. Due to a lack of direction and fast-paced inflation models, DAOs have given up large allocations of their treasuries with no clear path to sustainability.
The DeFi ecosystem has been looking for a solution to the liquidity crisis that many DAOs face. Bond Protocol is in the process of launching a bond marketplace where protocols can issue fixed-term (ERC-1155) or fixed-expiry bonds (ERC-20) that aim to be fully composable within the broader ecosystem.
While macroeconomic conditions have certainly applied pressure to both new and existing DeFi protocols, Bond Protocol is positioned to be the support layer for DAOs that are eager to raise capital on-chain and fully take control of their liquidity in the most decentralized way possible.
The Bond Protocol success thesis has been proven over this last year through Olympus DAO’s initial implementation which saw consistent usage even throughout the high volatility periods.
DAOs are consistently managing a stream of priorities all at once and managing a large pool of capital can become unsustainable. Yet, managing a treasury properly can be one of the most important factors in DeFi as the community funds have the ability to incentive and power the future growth.
Olympus Dao’s Innovation to Help DAOs Backstop Their Token Supply
“The moment liquidity incentives dry up, the token becomes more resistant.” The game was changed in September 2021 when Zeus, the founder of Olympus DAO, released the whitepaper for Olympus Pro, a mechanism to provide bonding to token projects in exchange for protocol-owned liquidity.
OlympusDAO's bonds-as-a-service platform, Olympus Pro, serviced 50+ partners and processed $150M in total bond volume across 7 chains in less than one year of adoption. The adoption and traction were impressive.
Meet Bond Protocol: “Bonding-As-A-Service”
Bond Protocol is improving on-chain capital raises to solve broader market challenges of token issuance, treasury diversification, and capital inefficiencies from renting Pool2 liquidity.
Bond Protocol’s improvements to Olympus Pro have the ability to represent a larger opportunity to activate $7.5B in idle treasury assets, as well as open new verticals for vested governance tokens.
Bond issuers launching via Bond Protocol’s permissionless architecture have immediate access to create, configure, and launch bond markets that allow community members to purchase governance tokens at a discount.
As protocols acquire their liquidity and diversify treasury holdings, their success is less dependent on inflationary liquidity rental programs and the price action of their native tokens.
How does Bond work today?
Bond Protocol is in the process of launching their “Beta” version this week with two close launch partners: ShapeShift DAO and Olympus DAO. ShapeShift and Olympus will soon be operating their bonds directly through Bond Protocol and are on their way to diversifying their treasury in a non-custodial manner.
Bond Protocol has extensive plans to hyper-scale with new bond types, auction mechanisms, blockchain deployments, and platform integrations. “Bonding-As-A-Service” will be the architecture that DAOs rely on moving forward for token liquidity management.
Chapter One Partners with Bond Protocol
At Chapter One, we believe in decreasing the barriers to accessing crypto and also empowering communities with the power of decentralized finance. We could not be more excited to back Bond Protocol and its team.
We are very fortunate to be working closely with the founding team at Bond Protocol given their strong & powerful previous backgrounds as core contributors at Olympus DAO. While at Olympus, they constructed the initial MVP and were extremely successful with adoption across the broader landscape.
At Chapter One, we believe that for Olympus DAO to scale, it was necessary for Bond Protocol to fulfill Its spinoff and we could not be more excited to support the team and community on product, hiring, community growth, relationship building, and so much more.
Bond Protocol is becoming its own DeFi primitive that DAOs will rely on for their on-chain treasury needs. Given Bond Protocol’s customizable approach and fully permissionless environment, the opportunities are endless.
Time to Get Started
Over the next several weeks, Bond Protocol will be opening up the protocol to more launch partners such as OlympusDAO and others, along with a packed roadmap that includes permissionless bond issuances and various bond types.
Do you represent a DAO that may be interested in using Bond Protocol? Join the Discord to get started here.
How To Get Involved
To contribute, reach out in the Discord! Bond Protocol will post new roles on the site as they open up.
For prospective Partners, please reach out in Discord or to email@example.com
For press inquiries, please contact PR@bondprotocol.finance