MetaBonds & Conquest
Hello explorers welcome to MetaLords DAO
In this article you will find all the information about how bonds work, why you will want to create bonds and how the revenue of bonds will be distributed in order to achieve our metaverse conquest.
Intro to bonds
By now you probably already know how bonds work so we will only summarize it briefly before getting into how they’ll boost our treasury and MetaFund. If you would like to know more about bonds check Olympus DAO’s medium article “A Primer of Bonding”.
So, basically the protocol offers MLORD with a discounted price in exchange of LP shares or stable coins. When you create a Bond you are trading your LP shares or stable coins for more MLORD tokens than you would be able to get on the market. These bonds will have a vesting period that will vest linearly meaning you will be able to claim a portion of your bond rewards at any time or the full rewards once the vesting period is reached.
We’ll give you an example to make things clearer:
- $MLORD Market price: $500
- $MLORD Bond price: $400
- Vesting period: 5 days
- 5 day ROI: 25%
Let’s say you have $1,000 to invest and want to purchase MLORD. If you purchased MLORD from the market you would be able to get 2 $MLORD tokens at $500 each. But instead, you create a bond and purchase 2.5 $MLORD at $400 each. Since bonds have a 5 day vesting period, your $MLORD will be set as pending rewards.
Redeeming bonds
A day after you created the bond you will be able to claim 20% of the bond or 0.5 MLORD. The other 80% or 2 $MLORD will stay as pending rewards. You can decide to claim every hour, every 2 days or wait until the vesting period ends. Note that if the price of the MLORD token stays at 500 you will have a 25% ROI after 5 days.
After you claim your rewards, you can do whatever you decide but we suggest either to stake them or bond them again to earn more $MLORD which will help you increase your profit shares from the MetaFund.
Bonding to Conquest
So now that you have an overview of how bonds work, let’s talk about how bonding will help the protocol and how the funds are going to be used.
Bonds are the sales mechanism by which the protocol boosts its treasury. As a metaverse real estate investment DAO, a portion of the revenues generated from the creation of bonds will be used to purchase and invest into metaverse opportunities. The revenue distribution will be as follows:
40% of the bond sales will go to the protocols reserve treasury for:
- Maintaining the backed and risk free value of the $MLORD token.
- Permanently locking significant amounts of liquidity
- Increase protocol profits from LP shares and using them to burn $MLORD
- Increase staker rewards
- Achieving stability of the protocol
50% will go to the MetaFund which is the main driver of our metaverse conquest. The funds will be used and invested in:
- Long term stable investments to create a stable backup value for the $MLORD token while at the same time having the growth potential to increase its value on the long term.
- Yield generators to generate passive income that will be used to increase our treasury and do buybacks therefore increasing the Risk-Free Value and the backup price of the $MLORD token.
- Early-stage projects with high ROI potential.
- Check out our MetaFund medium article to learn about the investment strategy and how profits will be distributed.
The other 10% of the bond’s sales will go to the team for continued development of the protocol.
The following information is extracted out of our MetaLords LBE Event medium article.
The team will not recieve any $MLORD token allocation.
After studying Olympus DAO model and most of the forks that have emerged from it, we believe that one of the main drivers of price decrease is the sell of the team’s token allocation. Since the team needs to sell its own tokens to generate income and continue developing the protocol they create a sell pressure to their own token which becomes detrimental to their own protocol. Instead the MetaLords DAO team has decided to generate income based on the protocol success. Therefore the team will get a small percentage whenever the MetaFund generates profits and from bonds created, always receiving shares in other tokens rather than $MLORD. This way, the team will never have to put a sell pressure on the $MLORD token to generate income.
We believe this creates a strong incentive for the team to work towards an everlasting success of MetaLords DAO, with an aligned interest with token holders of increasing the $MLORD token price and achieving the stability of the protocol. This at the same time incentivizes the creation of more bonds therefore increasing the MetaFund capital which enables the protocol to make more metaverse real estate investments and generate more profits for everyone involved, including tokenholders, the team and the protocol itself.
Contact
Twitter: https://twitter.com/MetaLordsDao
Discord: discord.gg/URp8JAU8mj
Website: https://www.metalordsdao.finance/
