💸Bonding

Enhancing Suitzerland’s Treasury for Long-Term Stability

Bonding serves as Suitzerland's secondary value accrual mechanism, enabling the protocol to acquire essential assets like SUI or USDC and its own liquidity by offering $STZ at a discount in exchange for these resources. What is Bonding? Bonding is an active, short-term strategy that allows participants to buy $STZ at a discounted rate. Unlike staking, which is passive, bonding involves monitoring market conditions as bond discounts fluctuate due to price discovery in the secondary bond market. This variability makes bonding’s profitability less predictable compared to staking. Why Bonding Matters? Bonding plays a critical role in strengthening Suitzerland by building Protocol-Owned Liquidity (POL). This ensures: ● Stable liquidity: Locked liquidity in trading pools enhances market operations and smoothens price fluctuations. ● Protection for token holders: POL safeguards the ecosystem from liquidity crises and ensures reliable trading conditions

Key Benefits for Bond Participants The main advantage of bonding lies in price stability and fixed returns:

• Upfront commitment: Bonders lock in their capital and receive a guaranteed return, payable in $STZ at a set future date.

• Profit potential: The profitability of bonding depends on the price of $STZ when the bonded tokens mature. Participants benefit most when $STZ maintains a stable price or appreciates over time.

By combining bonding with staking, Suitzerland ensures a robust, sustainable treasury while offering diverse strategies for participants to maximize their returns.