Bonding With Brokkr
Bonding is a mechanism that allows users to buy $BRO tokens for a discounted price. It uses a portion of the $BRO inflation from the Rewards Pool. After bonding, the tokens are locked for 5 days (5 epochs), so they can’t be immediately sold on the market.
It will be possible to bond towards both parts of the Brokkr Treasury — Protocol Owned Capital & Protocol Owned Liquidity.
Protocol Owned Capital (POC)
POC is the most important part of the treasury that unlocks Borkkr ‘s main functions:
- Secures $BRO Floor Price
Part of the POC is used to guarantee the $BRO token price, creating a Floor price. After bootstrapping period, stakers will have the option to exchange their $bBRO & $BRO tokens for their backing price in $UST.
- Brings an endless stream of revenue for the protocol
The POC is invested in Brokkr Portfolios & Strategies to constantly generate new revenue for the protocol. This part of the protocol can’t be withdrawn by anyone and grows the treasury “forever”.
Protocol Owned Liquidity (POL)
POL is the liquidity that Brokkr owns ($BRO/UST), and can’t be withdrawn by anyone.
- It ensures there is enough liquidity for trading at any moment
- LP trading fees generate an additional stream of revenue for Brokkr
Brokkr enables bonding towards POC and POL. Both bondings have the same mechanics, they differ only in which tokens are being used.
• 5% discount on BRO tokens
• New tokens are accessible after 5 days
• 125k new tokens are available for bonding each epoch (approx. 1 day)
Treasury Bootstrap is a special type of bonding to quickly bootstrap the Treasury and POC. It provides a higher discount than the regular type of bonding, but the tokens are locked for much longer.
It’s a part of the Bootstrapping phase that will last for 1 year. During the Bootstrapping phase, all generated revenue is compounded and reinvested.
• 1,5% Tokens (from the Community pool)
• Higher discount on BRO tokens
• New tokens are staked & locked for 2 years
• Bonding with $UST
• Starts in Q2
During the lockup, the newly bought $BRO tokens will be staked and locked, generating staking rewards in $BRO & $bBRO. As the tokens are locked for 2 years, the rewards are increased to the maximum, giving users more $bBRO.
• Untradable loyalty token received for staking
• Grants access to the Brokkr Treasury
→ More bBRO = Higher share on the Treasury
• Grants access to the Floor Price
→ More bBRO = More BRO tokens can be sold for the FP
Why is it so important?
Having the funds in the Treasury and POC is crucial — in the first year, the funds are autocompounding to generate more revenue for the protocol. And the compounding effect only gets stronger with time.
This means the share of the Treasury accessible with bBRO will have a higher value. It also means the Floor Price can increase as there will be more funds that can cover it.