Phase 2 Transition. Detailed Outlook

Published in

BondAppetit

3 min readJun 16, 2021

BondAppetit is gradually making the transition to the second launch phase. In the next few weeks, the first batch of bonds will be bought and collateralized.

How exactly will the transition take place?

🔓 On June 23rd, at block 12,689,919, withdrawals from the USDC / USDap pool will be unblocked.

🏪 In the period from June 25th to June 30th, all USDap holders will be able to exchange their USDap for USDC at an exchange ratio of 1:1. During this period, pool members will be able to decide whether to withdraw their USDC or leave them in the protocol for the purchase of bonds. The exchange of USDap for USDC will be executed through a smart contract (0x38fDc8C3E8409527F960Df83Cf0Be5274040d9fC), which was audited by HashEx.

Those who choose the first option will be able to redeem their USDC from June 25th to June 30th. Please note that all USDap converted to USDC will be burned to maintain the balance in the protocol. As a result, the issuance of USDap will decrease. Holders will not be able to return to the USDC / USDap pool and continue receiving rewards. After the conversion, USDC can be sold on Uniswap at a market price.

Those who choose the second option will continue to participate in the operation of the protocol and will receive BAG tokens as rewards. A new BAG / USDap pool will be made available, as well as a USDC / USDap pool, where the distribution of the remaining 2 million tokens will continue until August of 2021.

💃 During the first month of its operation, the new BAG / USDap pool will distribute 1 million BAG tokens. This pool is critical for the protocol. That is why the rewards will be so generous during this transition period. The given pool will be used to give a choice to current USDap holders to stay with USDap or exit using USDC. It is important for the protocol to have as many participants as possible. This will increase the volume of USDap for the ensuing purchases of bonds. We would also like to remind all participants that the USDap stablecoin is the main asset of the protocol and the success of BondAppetit and the interest received by BAG token holders depend directly on the volume of USDap emissions.

🤝 The next step will come into effect on June 30th, when all remaining USDC will be granted via voting to a borrower for the purpose of purchasing bonds. The voting for the transfer of USDC will end around July 5th.

📄 By July 10 to 15, the borrower will convert the allocated USDC into fiat and will start buying the first bonds in batches of $500,000. The purchase of the bonds in batches and the significant time lag are explained by the fact that certain legal procedures are required when interacting with the fiat system. Starting from that point on, the USDap stablecoin will be backed by real-world assets.

💰 During the investment round, we raised 61,000 USDC on the investment contract at 0xaa1018F90ff82F058b1Ec7aa3D72A243F66300Bd. These funds will be used for buying bonds to offset the cost of converting cryptocurrency assets into fiat and vice versa.

🗳 It is necessary to carry out several management proposals for the transition to the second phase to take effect:

— Proposal to launch a BAG / USDap pool with the issuance of 1,000,000 tokens in 28 days: https://bondappetit.io/governance/proposals/12. The pool will be launched on June 20th.

— Proposal to launch a smart contract to exchange USDC for USDap at a 1:1 ratio and transfer the accumulated USDC to this contract. Voting will be opened on June 20th.

— Proposal to approve DigiRepresent as the first borrower. This is the company which will purchase the first batch of bonds. The 1,000,000 BAG held by DigiRepresent will be blocked as collateral. This proposal will be launched on July 5th to fully launch the protocol in the second phase by July 10.