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Introduction to Bonded Finance

UTC by Andy Watson · 4 min read
Introduction to Bonded Finance
Photo: Bonded Finance / Medium

As Bonded continues its development, new assets will be available for borrowing and lending, alongside new products including index protocols, synthetic assets and the release of the bToken, Bonded’s hybrid algorithmic stablecoin.

DeFi or Decentralized Finance has emerged as the sanctum sanctorum of cryptocurrencies on the whole. Many long-time proponents of the Ethereum network felt that the gaming industry would be revolutionized long before traditional finance but alas, decentralized financial instruments on the blockchain have taken root—and have the locked value to prove it. The total amount of funds locked in DeFi contracts as of February this year was roughly forty billion USD; up more than one hundredfold from the year prior. As DeFi continues to evolve and dollars continue to pour in, investors are looking for new ways to maximize returns via these innovative products.

Basic borrowing and lending services for larger-cap cryptos are leading the charge while the more savvy are placing their cryptos in vaults that mine for the top yields. Automated market makers have provided scores of opportunities for arbitrageurs while vaults offer liquidity mining and yield aggregation i.e. the ability to scour the blockchain for the best yields and continually move the capital to optimize gains. These risk-on products hold considerable sums of capital in their smart contracts as do the more basic products designed for the more risk-averse, less proactive user. There are numerous products coming to the fore and we are witnessing a return to what would be tantamount to interest-bearing checking accounts with cryptos replacing fiat in these virtual banks.

What does Bonded Finance Do?

With nearly 7000 cryptocurrencies and some 700 exchanges through which people trade, real liquidity and earning power among cryptos is still hard to come by. To date, it has remained largely in the realm of a select few. Bonded Finance saw a massive opportunity in this. With crypto maturing as an asset class, there are scores of projects that are well funded, have made demonstrable progress, have solid volume and price histories, yet, they have not been afforded the opportunity to partake in the decentralized financial services movement. The space is of course still young and quite volatile with newer, “on the run” tokens gaining favor over established projects. Bonded has identified some fifty billion USD in untapped liquidity in the clearly underserved altcoin market and is building a network of value by aggregating these tokens under their banner to provide DeFi protocols through their algorithm-driven “smart instruments.” Bonded’s aim is to bridge the gap between established and nascent altcoin projects and DeFi products.

Bonded’s Debut Product

Though Bonded recently released a “stacking rewards program,” beginning in May, which grants Bonded liquidity providers tokens from sought-after IDOs, their oft-talked about product is an  Accelerated Crypto Loan (ACL), the first of four financial products in development. The ACL allows for borrowing and lending markets with dynamic interest rates for some of the aforementioned altcoins that have been overlooked. This allows borrowers and lenders to interact through a solitary protocol. More than this, it allows communities exposure to the Bond community, helps remove tokens from circulation and goes a long way in securing the hold of longer horizoned investors. The borrowing and lending rates are determined by supply and demand and will vary based on the availability of assets. To interact with Bonded, Lenders connect their Metamask wallet and directly deposit assets into a liquidity pool if a direct market is not available. As Bonded continues its development, new assets will be available for borrowing and lending, alongside new products including index protocols, synthetic assets and the release of the bToken, Bonded’s hybrid algorithmic stable coin.

Team behind Bonded

Bonded Finance is run by a team of developers who have considerable experience in cryptocurrency and financial services. At the helm is CEO Paul Mak who boasts 17 years of investment and management experience across south-east Asia/pacific markets along with Lorena Valencia, an executive that delivers expert foresight and operational efficiency to Crypto companies. While in transition to fully autonomous smart contracts, Peter Aiken, a senior partner with over 20 years of experience in the investment sector is bridging the gap between traditional finance and crypto. Other members include Sameep Singhani, a smart contract developer who worked on Uniswap and other market-leading DeFi platforms, along with Cyber Unit Tech, who have worked with national banks and a number of leading cryptocurrency projects.

Altcoin News, Blockchain News, Cryptocurrency news, News
Andy Watson
Author Andy Watson

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