💸Liquidity Bonds
FEG has introduced a new feature to ensure liquidity is distributed among multiple holders, stabilizing and securing the liquidity pools. Liquidity Pool (LP) Bonds will be available for a limited time on a first-come, first-served basis.
You will have the opportunity to invest BNB and ETH into FEG's liquidity, and in return, you will receive free FEG tokens to pair with your BNB/ETH in the liquidity pool. For example, if you invest 1 BNB, you will receive an equivalent amount of FEG tokens for free. When you withdraw your funds, you will receive your original BNB, the free FEG tokens, and your share of the income generated from LP taxes during this period.
LP Bonds Overview
Maturing Bond Terms:
Ratio: 1:1, instant 2x leverage
Maturity: 12-month term
Withdrawal: After maturity, withdraw your LP and any extra rewards
Bond Minting Process:
Deposit any amount of BNB/ETH and receive an equivalent amount (1:1 BNB/ETH) of FEG in vested LP, instantly doubling your deposit.
Example: Deposit 0.1 ETH and receive an additional 0.1 ETH worth of FEG for free to place in LP.
Bond Earnings:
Earnings are dynamic and related to price changes.
Example: Mint a 2 ETH bond, and if the FEG price increases nearly 5x over the next 12 months, your bond would be worth 9.2 ETH plus 9.2 ETH worth of FEG, resulting in a 920% gain compared to 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. This provides additional income, depending on trade volume, even if the price remains the same.
Post-Claim Options:
Holding: Retain the LP to collect constant swap fees and generate passive income.
Realizing Gains: Remove part or all of your LP to capture profits.
Availability:
Bonds will be available for a limited time and in a limited quantity.
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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