The field of decentralized finance is one that keeps on growing. The appetite for DeFi applications is getting stronger by the day as evidenced by multiple metrics.
Data from the popular resource DeFi Lama reveals that there’s currently almost $190 billion worth of value locked in various decentralized protocols. The leading networks include Ethereum, Fantom, Terra, Solana, BSC, and so forth.
In fact, Solana has been one of the frontrunners in 2021. The network saw exponential growth in terms of both value locked and overall usage.
And while there are a lot of products available, one financial niche that doesn’t seem to get that much attention is bonds. The definition for a bond is a “fixed-income instrument that represents a loan made by an investor to a borrower.” In essence, the owners of the bonds are debtholders or creditors of the issuer. Some of the bond details include:
- When the principal of the loan is due
- Terms for a variable or fixed (most commonly) interest payments to be made by the borrower
And while bonds are so commonly discussed within the traditional financial system, they aren’t as popular in the field of DeFi. This is what SuperBonds Finance aims to tackle.
What is SuperBonds Finance?
SuperBonds represents a DeFi bond market that’s built on the Solana network. Its purpose is to enable users to buy or sell and also to take custody of yield-generating bonds. In essence, it’s a decentralized bonds exchange that provides users with exposure to DeFi markets while also being able to receive an adequate valuation of their bond or non-fungible tokens.
The team aims to become the very first bond market through financial NFTs built on top of the Solana blockchain, promising various opportunities.
SuperBonds and its Features
SuperBonds are created through a yield boost that’s achieved from 25% of the previous day’s fees. These are used to attain a randomized period of offering on the following day. This mechanism is designed to enable users to lock in yields higher than normal bonds.
The yield for a specific bond is programmed to be fixed in order to bring a minimum return in stablecoin. The issuance is also continuous while the variable yield-to-maturity is variable and connected to every issuance to increase the return rate.
Traders are able to provide USDC so they are able to take custody of a bond. Moreover, a live value-check of their bond can be accessed at any time within their convenience. They can also redeem it prior to its maturity, at it, or after the maturity.
Speaking of self-custody, this is also an important point. Taking custody of assets is critical in the world of decentralized finance and SuperBonds Finance allows for it. Users don’t have to pay custody fees or rely on third parties.
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