πΈLiquidity Bonds
FEG has developed a new feature to ensure FEG's liquidity is spread out among multiple holders, thus helping stabilize and secure the liquidity pools.
Liquidity Pool (LP) Bonds will be offered for a limited time on a first-come, first-served basis.
More precisely, you will be offered the possibility to invest BNB and ETH into FEG's liquidity, and in exchange, you will be provided free FEG tokens to pair your BNB/ETH with into the liquidity pool.
This means you invest, for example, 1 BNB, and you will be given, for free, 1 BNB worth of FEG. So, at the end, when you retrieve your funds, you will receive your BNB, plus the FEG given to you, plus your share of the income generated from LP taxes during this time.
Here are some quick key points for the LP bonds:
Maturing Bond Terms - Ratio: 1 to 1, instant 2x leverage - Maturity: 12-month term - Withdrawal: After maturity, you can withdraw your LP and any extra rewards
Bond Minting Process Deposit any amount of BNB/ETH and get matched with an equivalent amount (1:1 BNB/ETH) of FEG in vested LP, instantly doubling your deposit. Example: Deposit 0.1 ETH and receive for free 0.1 ETH worth of FEG to place in LP.
Bond Earning
Earnings are dynamic and related to price. Example: If you mint a 2 ETH bond and the FEG price goes almost 5x in the next 12 months, your bond would be worth 9.2 ETH plus 9.2 ETH worth of FEG, earning 920% vs. 460% if you just held FEG. Income from LP taxes: Those who provide the LP for a token will earn a tax from every trade, so depending on trade volume, you are looking at extra income, even if the price stays the same.
Post-Claim Options - Holding: Retain the LP to collect constant swap fees and generate passive income - Realizing Gains: Remove part or all your LP to capture profits
Availability - Bonds will only be available for a limited time and a limited number
Because your BNB/ETH will be placed in a liquidity pool, your assets could be subject to impermanent loss; please read more on this subject on Binance Academy so that you can make an informed decision.
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