Hundred Finance Bonds Live on Rome DAO
Following our announcement last week of Olympus Pro-backed bonding of HND liquidity tokens on Arbitrum and Fantom, we’re happy to now be able to announce the next stage of our multi-chain bond program, this time carried out in partnership with Rome DAO on Moonriver.
Cryptocurrency users are now able to purchase HND at a discounted rate in exchange by buying bonds minted from Solarbeam’s HND-MOVR liquidity tokens on Moonriver. Participation in this program not only allows the public to acquire a stake in the Hundred Finance protocol at a cheaper-than-market rate, it also assists the project in overcoming some of the issues that impact DeFi bootstrapping programs more broadly. These include:
- Sell Pressure: Protocol-owned liquidity reduces the impact of mercenary liquidity providers carrying out short-term farming practices. No longer competing solely with other LPs, the sell pressure of these actors is reduced and the ability of a protocol to expand organically increased.
- Impermanent Loss (IL): The success of a protocol inevitably causes price appreciation in its native token, potentially leading to significant impermanent loss for liquidity providers. Protocol-held liquidity shifts IL to the largest holder of the native token, the protocol itself.
- Goal Misalignment between the Protocol and Hodlers: As the protocol acquires more permanently locked liquidity, the liquidity pools can support larger trades and achieve greater price stability when large sells occur. This better incentivizes hodlers as they no longer need to fear the removal of their ability to reduce or exit a position. This better aligns hodlers with the long-term vision of the project, encouraging them to participate in the community and contribute to its growth.
- Lack of Revenue Streams: Every swap transaction in a pool contributes a fee to the liquidity providers. As liquidity is permanently locked in the project treasury, these fees provide a constant source of revenue for the protocol. Furthermore, project-owned liquidity could hypothetically be used to farm in and of itself, generating further income.
Rome DAO: An Introduction
Rome DAO is an “official” fork of Olympus DAO, the project behind the issuers of our Arbitrum and Fantom bonds. Similar to OHM, its mission is to become the reserve currency of the Kusama and Polkadot networks. As such, it is deployed on Moonriver, the EVM-compatible layer-one blockchain of Polkadot. At the same time as Rome DAO offers the protocol-owned liquidity mechanism of Olympus, it also emphasizes a gamification of the process under the theme of military campaigns conducted during the Roman era. Stakers commit “soldiers” (capital) to earn the “spoils” (NFTs) of war, while “houses” (community groups) have been set up that focus on particular tasks. This adds a community-focused edge to the project that has allowed it to quickly establish itself as a big player in the DeFi ecosystem of Moonriver.
Hundred Finance x Rome DAO Bond Program
In co-creating its Rome DAO bonding program, Hundred Finance has requested a bonding period of 5 days and is allocating 100,000 HND tokens to the program, with the expectation of it running for a minimum of 4 weeks. We will adjust the allocated rewards and length of the program as needed going forward. The liquidity tokens used in the program are as follows:
Solarbeam’s HND-MOVR SLP — Connect to the Moonriver network and add liquidity here.
How to Bond
Step 1
Proceed to Rome DAO and select “Launchpad” on the left-hand side of the UI to go to the HND-MOVR LP and choose HND bonds:
Step 2
After choosing HND-MOVR LP and ensuring you are connected to the correct network, you will then be greeted with the bond page where you can approve the contract:
Step 3
If you don’t have the required LP token, it is at this point that you will need to move to Solarbeam in order to acquire them:
Step 4
Back in the Rome interface, enter the amount of LP tokens that you would like to bond. You will be quoted an equivalent amount of the HND token in the “You Will Get” field:
Step 6
Once the Bond transaction is confirmed, you successfully purchased a bond!
Step 7
Your dashboard will now show you your currently vesting bond, as well as those that have fully vested
Step 8
Once the 5-day vesting period is complete, click the “Claim” button to claim the bond rewards and send your HND tokens to your wallet!
For further information on Rome’s bonding programs, consider taking a look at their dedicated docs on their website.
Conclusion
The partnership between Hundred Finance and Rome DAO is a valuable addition to our bond program, better allowing us to establish sustained liquidity and manage it in a capital efficient and community-friendly manner. It is yet another major step in our ongoing establishment of a robust treasury of protocol-held assets that will allow us to drive Hundred Finance forward and continue our mission to become the preeminent lending platform in a multi-chain cryptocurrency ecosystem.
