Phase 2 is Incoming. Сhanges in the Pools and Acquisition of the First Bonds for Backing USDap
The launch of the second phase of the protocol is nigh. In June, the funds in the USDap / USDC pool will be unblocked, and the first batch of real-world assets (bonds) will be added as collateral to the protocol. The protocol will be receiving the first coupon yields for subsequent distribution to BAG token holders during the next quarter.
As we had promised earlier, it will be much more difficult to obtain any “free” BAGs during the second phase, since no real economic model can hold out triple-digit returns.
The following changes will thus be implemented in the pool sets and their profitability values:
— The bBAG / BNB pool, which will end on June 7th, will be extended. At the same time, we propose to reduce the distribution of tokens in all farming pools by 10x to ~2,304 tokens per day. The approach will be implemented in the bBAG / BNB pool around June 21st in the BAG / USDT pool, after the end of the distribution of tokens. You can vote for or against the proposal here: https://bondappetit.io/governance/proposals/10
— We do not plan to extend the BAG / USDN pool with BAG token rewards. The pool will end on June 22nd. It was created to attract the audience of the Waves platforms, and this goal has been achieved. We managed to place our token on Swop.fi — an analogue of Uniswap + Curve in the Waves ecosystem. On June 14th, this pool will open to those who will vote next week for the pool weight on Swop.fi (the given users will receive ~300% per annum during the first week). On June 21st, the pool will be opened to everyone else. The BAG / USDN pool on Ethereum is no longer needed. Its closure will reduce the supply of tokens by another ~20,292 per day.
— We plan to launch the new BAG / USDap pool by June 22nd. Its purpose is to motivate people from the USDC / USDap pool (the most risk-free protocol pool) to stay in the USDap pool after the transition period during the second phase, thereby increasing the bond portfolio and coupon yield.
— We understand the need for liquidity regarding the BAG and USDap tokens in their pairs with other stablecoins, so we do not plan to abandon farming altogether. However, since the first phase of the launch is coming to an end, and we need to move towards a real economy, the emission of free tokens should be reduced significantly.
The ultimate goal of all these changes is to reduce the number of BAG tokens that are being distributed as rewards on a daily basis, thereby automatically making the BAG token more valuable. We have achieved all the objectives of the first stage of the protocol’s launch, hence distributing “free” tokens in such volumes is becoming harmful for the protocol.