Bond
Fixed income by lending assets to a protocol treasury. The asset loaned need not be the protocol token and is determined through treasury governance. Similarly, interest payments are not limited to just the protocol tokens.
Principles
Smart contracts are utilised for storing tokens within the treasury as well as implementing rules based on governance votes. Token bonds are unlocked and claimed when matured.
Benefits
- Incentivises protocol-owned liquidity which leads to improved trust in the protocol token
- Treasury reserves can be allocated based on DAO governance
Protocols
- Olympus