Bonding

Bond utilization is one of the core changes we are very excited about as it dramatically benefits platform investors. Here, users can sell multiple liquidity pairs to the platform and, in return, receive dynamically discounted platform tokens throughout a 7-day vesting period.

The tokens from this emission allocation will be locked until the subsequent bonds are purchased — rather than minted during the purchase cycle.

Given the finite distribution for this section, this will promote significant and rapid TVL growth, which subsequently allows for stable long-term developments. In addition, this POL model (Protocol Owned Liquidity) will help create a price floor for the platform-specific token that will add additional stability mechanisms to our stable coin and help mitigate wild price swings. This bonding process will also increase volume through our swap, which will incur the 0.1% fee, thus generating additional revenue for the platform, further backing the Unigate Token UGT and the Unigate Platform.

Different from traditional methods where liquidity providers can stop supplying liquidity at any time, the new platform’s working mechanics will create Protocol Owned Liquidity by tying LP tokens or single assets into the protocol’s Treasury in the form of bonds to maintain constant liquidity and maintaining and increase the backing price of our native token.