Bonding
What is Bonding?
Bonding is the act of locking your token in the Lottery Set Dollar DAO. You lock your tokens in the DAO in order to gain benefits such as voting or rewards.
What is Staging?
When entering the DAO, your tokens must pass through a staging phase. This state is used to control the deposit and withdrawal of tokens when your tokens are "fluid". See below to understand what "Frozen and Fluid" mean.
How do I bond LSD tokens?
Bonding tokens requires a user follow these steps:
Connect their wallet to
From the app, click on DAO. Your balance should appear.
Deposit the tokens you wish to bond into the staged area and click the plus sign, and agree to the transaction. When those coins are staged they will be available to bond.
Enter tokens that you wish to bond, and again agree to the transaction. Those coins will be bonded and they will require a 14 cycle exit lockup in order to go back to a frozen state.
Why do some cycles grant rewards and some cycles do not?
If there is excess demand for LSD, then the price will go above $1 on the Pancakeswap pool, and that signals the protocol to mint additional token supply. Conversely, if the demand shrinks, excess selling on Pancakeswap will push the price below $1, which triggers the protocol to generate debt (via lottery ticket sales) and incentivise token holders to burn LSD to shrink the token supply.
If the money supply needs to be shrunk, no supply expansion will be made that cycle. If the money supply was shrunk in the past, those debts will either remain on the protocol, or get bought by users in the form of coupons. Both debt in the form of ticket sales will be paid off in the future ahead of new rewards, so it is possible to receive no new rewards in a money supply expansion epoch if there are historical debts to be repaid first.
What do frozen and fluid states mean?
The best way to visualize this is with the flow below:
Deposit/Withdraw ←→ Staged ←→ Bond/Unbond.
Any time, you use Bond or Unbond once, you go into a fluid state in that epoch
Upon the next epoch, you will go back into the frozen state
In fluid state:
You will not be able to withdraw or deposit
You will be able to bond/unbond any number of times.
In Frozen state:
You will be able to deposit and withdraw.
This means when you are bonded and want to withdraw, you will first unbond, spend the rest of the cycle in fluid state and upon next cycle when state changes to frozen, you will be able to withdraw.
For Deposit, you will be able to deposit and bond in the same cycle as when you deposit and stage you will still be in a frozen state, but as soon as you bond, you will be in a fluid state, so you cannot deposit again in that epoch, or withdraw.
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