Bonding

Bonding allows users to purchase SLOHM at a discount by providing assets to the treasury. It's how the protocol grows its treasury and acquires liquidity.

How It Works

1. Choose an asset — MOTO, PILL, or LP tokens
2. Bond at discount — 5-25% below market price
3. Tokens vest — Linear unlock over ~5 days (720 blocks)
4. Claim vested SLOHM — As it unlocks

Why Bond?

• Discount: Get SLOHM cheaper than market
• Predictable: Know exactly how much you'll receive
• Support the protocol: Your assets strengthen the treasury

Bond Pricing

For Single Assets (MOTO, PILL)

Valued at current MotoSwap pool price:

value = amount × poolPrice

For LP Tokens

Uses Risk-Free Value (RFV) to avoid circular backing:

RFV = 2 × sqrt(reserve0 × reserve1) × (lpAmount / totalLP)

Bond Price Formula

bondPrice = marketPrice × (1 - discount)
discount = baseDiscount - (debtRatio × BCV)

Higher protocol debt = lower discount. This balances supply/demand.

Vesting Schedule

Parameter	Value
Vesting Period	720 blocks (~5 days)
Unlock Type	Linear
Claim	Anytime for vested portion

Discount Tiers

Asset Type	Base Discount
Single asset (MOTO, PILL)	5-15%
LP tokens	15-25%

LP tokens receive higher discounts to incentivize Protocol Owned Liquidity.

Example

You want to bond 1000 MOTO when:

• MOTO price: 0.001 BTC
• SLOHM price: 0.01 BTC
• Current discount: 10%

Calculation:

1. MOTO value = 1000 × 0.001 = 1 BTC
2. SLOHM at market = 1 / 0.01 = 100 SLOHM
3. With 10% discount = 100 / 0.9 = 111 SLOHM
4. Vests over 5 days

Best Practices

When to Bond

• Discount is attractive (>10%)
• You can wait 5 days for vesting
• You're bullish on SLOHM long-term

When NOT to Bond

• Very low discount (under 5%)
• You need immediate liquidity
• High protocol debt (watch the dashboard)

How to Bond

1. Navigate to the Bond page
2. Select the asset you want to bond
3. Enter amount
4. Review the discount and payout
5. Set max price (slippage protection)
6. Confirm transaction
7. Wait for vesting, claim as it unlocks