Bonding is the secondary value accrual strategy of HunnyDAO. It allows HunnyDAO to acquire its own liquidity and other reserve assets such as BUSD by selling LOVE at a discount in exchange for these assets. The protocol quotes the bonder with terms such as the bond price, the amount of LOVE entitled to the bonder, and the vesting period. The bonder can claim some of the rewards (in LOVE) as they vest, and at the end of the vesting period, the full amount will be claimable.
Bonding is an active, short-term strategy. The price discovery mechanism of the secondary bond market renders bond discounts more or less unpredictable. Therefore bonding is considered a more active investment strategy that has to be monitored constantly in order to be more profitable as compared to staking.
Bonding allows HunnyDAO to accumulate its own liquidity. We call our own liquidity Protocol Owned Liquidity (POL). More POL ensures there is always locked exit liquidity in our trading pools to facilitate market operations and protect token holders. Since HunnyDAO becomes its own market, on top of additional certainty for HunnyDAO investors, the protocol accrues more and more revenue from LP rewards bolstering our treasury.