One thing that is constant in the crypto space is volatility. The market cycles with tokens cannot be avoided, with the DeFi space oscillating the never-ending bullish and bearish sentiment. A cursory glance into the present DeFi space reveals a distinct lack of fixed interest rates or fixed-income products. While the backbone of the traditional financial sector, decentralized financial markets are running on variable rates and not fixed lending or borrowing.
This is where SuperBonds is angling itself as a game changer and having launched on Solana on May 16th, 2022, stands to start a revolution in the DeFi ecosystem by providing fixed yield opportunities. Upon launch, the platform went live offering ~$30 million worth of bonds to users. The DApp can be accessed here: https://superbonds.finance/#/
What is SuperBonds, and how is it leveraging financial NFTs to jumpstart a fixed-yield on-chain market? Let’s dive in.
SuperBonds is a decentralized application built on the Solana blockchain, where users can buy guaranteed fixed-yield financial NFTs. There are several features of the SuperBonds platform that makes it standout in the DeFi space. Unlike existing platforms, SuperBonds offers the following advantages:
Fixed USDC yield
For those new to earning interest on crypto assets, USDC can be a great place to start. These rates are much higher than those of typical savings accounts, giving investors much higher returns. To add to this, investors need not worry about the volatility of crypto tokens.
This yield predictability could quickly turn SuperBonds into a fan-favorite. Offering an initial guaranteed APY of 9% on its 90 Day Bond and 6% on its 30 Day Bond, the platform allows users a risk-free way to earn on their stablecoins. This is all the more pertinent given the change of market dynamics in the last week or so. Moreover, the product is suitable for experienced yield farmers looking to park their extra cash or crypto newbies trying to explore the somewhat esoteric DeFi scene.
Continuous and flexible Issuance.
On SuperBonds, liquidity providers can provide liquidity for the interest(the fixed yield) paid out to buyers on the NFTs that can have different maturities. LPs, also called Bond Underwriters–they underwrite the bond interest as mentioned– earn rewards via multiple revenue streams such as trading fees, staking their LP tokens and from external farming rewards. Moreover, a bond issued today has a different maturity than a bond issued yesterday.
Buyers effectively ‘lock-in’ the interest rate on their purchase. Users can also redeem anytime before, during, or after the maturity date.
What can users do on the mainnet?
Earn a fixed yield
Buyers will be able to buy fixed yield NFTs on the platform. 30-Day and 90-Day maturities will be offered for the bonds that are issued as NFTs and thus can be self-custodied. These will be redeemable at any time the user desires.
To buy or redeem a bond, USDC, $SB token, and some SOL, will be required. Users will have to pay a fee (in USDC and $SB) to buy their bond as well as the associated network fees in SOL.
On top of a fixed yield based on the pool’s duration, buyers will also earn an additional variable bonus in the form of $SB tokens.
The bonds bought will be in the form of NFTs. Users will self-custody these bond NFTs in their SPL wallet and will be free to transfer it to any Solana address.
Become an LP
To issue a fixed yield NFT, capital is required, which can be supplied by anyone looking to earn by providing liquidity, thus making them a Liquidity Provider, or in other terms a Bond Underwriter. Bond Underwriters will be accruing various value streams, which will be far greater than the interest risk on their underwritten liquidity. In particular, LPs will be able to:
- Stake their LP tokens to accrue $SB tokens, which can further be staked in different pools to stack further yields
- Benefit from the yield generating activity of Traders Pool capital(capital collected from sold bonds in the smart contract) deployed for external farming
- Always realise a fee on each trade from the LP pools they deploy their capital into
Using SuperBonds involves the platform’s deflationary gas token $SB. $SB token can be bought on RaydiumDex or MEXC exchange. With the platform live on Solana, DeFi users can see for themselves if amidst a sea of volatility, SuperBonds with its fixed rate bonds can be the deliverance of their portfolios.