#020: 📈 Now you can trade Bonds on Cardano

PLUS: Is Muesli Swap best DEX for trading Bonds?

Author

Laura & Sooraj
January 06, 2023

Welcome to This Week In Cardano

Read time: 5 minutes

If you want to:

  • Quickly gain fundamental blockchain knowledge

  • Use a metric-base assessment framework to make informed decisions

  • Have example assessments of major Layer1s already bring you way ahead of 95% of the people in the space

Then this eBook is for you👇

A 3-Step Metrics-Based Assessment Framework for Layer1 Blockchains (eBook) (ENG)

🏆 The First Book in Crypto that provides a metric-based Assessment Framework to evaluate Layer1 Blockchains based on the dimensions of the Blockchain Trilemma. It's an easy-to-understand and accessible Assessment Framework for blockchain evaluation based on the 3 dimensions of the Blockchain Trilemma indicating the degree of decentralization, scalability, and security.❓Maybe you know some or all of this: ❌ You are new to the crypto space and you feel lost in all the diverse and opposing information❌ You don't know where to look for trustworthy information❌ You have no time to do endless hours of research❌ You have been in the crypto space for a while and you are tired of all the hype and coin pumps.❌ You want to build your profound understanding of different blockchain projects❌ You want to understand the differences between projects from a fundamental, metrics-based perspectiveBut don't worry. We have been there, too. This is why we wrote this book!When it comes to classical stock evaluation, standardized frameworks, metrics, and procedures exist.What is already common sense in this asset class is a green field in the crypto market. Here, many bases their investment decisions due to complexity and information asymmetries on following the hype on Twitter or the narrative of influencers who might just want to dump a coin.This eBook sheds some light on the currently unstructured, distributed, and inconsistently crypto asset market.🤔 How is this possible, you might ask?The ebook provides you with a go-to framework for a Layer1 Proof of Stake Blockchain Assessment.......so that you will be able to understand:✅ What is the difference between stock evaluation and crypto assessments?✅ Why is a metric-based Assessment Framework essential to evaluate Layer1 blockchain projects?✅ What is the Blockchain Trilemma and why is the Assessment Framework based on it?✅ What metrics does each dimension of the Blockchain Trilemma contain?✅ How to apply the Assessment Framework - A simple guide.✅ Example assessments that show you step-by-step how to apply the Assessment Framework✅ A list of resources to research the metrics and to conduct your own assessment of Layer1 blockchains. 💎 How you benefit from the book:💎 You gain fundamental blockchain knowledge you would need weeks or months to collect the information from websites, Youtube and Twitter💎 You have a go-to framework that provides an understanding and gives an indication of the status quo of Layer1 Proof of Stake Blockchains, regarding their degree of decentralization, scalability, and security 💎 You have guiding principles and fundamental metrics at hand that helps you when it comes to making investment decisions. (because conducting such a quantitative assessment before making an investment decision should be a prerequisite for everyone in crypto for the long-term game.)💎 The provided example assessments of major Layer1s already bring you way ahead of 95% of the people in the space who just follow the next best Crypto influencer when it comes to their investment decisions.📖 What you will get - A sneak peek into the outline of the bookIn chapter 1 we will dive into the crypto assessment and shed light on why a metrics-based assessment framework is important.Chapter 2 deconstructs the development of the L1 Proof-of-Stake Blockchain Assessment Framework based on the Blockchain Trilemma and provides a detailed step-by-step guide and explanation of what metrics the Assessment Framework comprises.Chapter 3 provides example assessments of major Layer 1 Blackchins and demonstrates the practical application of the developed framework. Finally, Chapter 4 provides you with the most basic resource links to apply the Assessment Framework to conduct your own assessmentThis Assessment Framework has been deliberately designed to be as simple and accessible as possible so that also crypto beginners can work with it. I hope it will help you to start analyzing the fundamentals of existing or upcoming blockchain projects and to make more informed decisions.🎁 After you buyAfter you purchase the eBook, the download link will take a few minutes to come to your email inbox due to PDF stamping. Make sure you enter the correct email address at checkout. It can take up to 10-15 minutes before you receive the link. Be patient :)What if you haven't received the link?If you don't get the email with the link within 30 minutes reach out to us and we'll send it manually as soon as we can! Gumroad can act up sometimes :( ⚠️ Important noticeThis is a PDF download. No physical product will be mailed to you.We don't accept returns of the eBook - for obvious reasons. Make sure it's for you before you buy.

https://bit.ly/3PXcPcR

Hi Cardano Community,

Welcome to This Week In Cardano - your daily Newsletter covering the major updates in the Cardano Ecosystem!

This is what we have for you today:

  • 📈 Now you can trade Bonds on Cardano

  • ⁉️ Is Muesli Swap best suited DEX for trading Bonds?

  • 💎 Gem of the Day

This Week In Cardano

Your Daily Newsletter covering all major events happening in the Cardano Ecosystem

Now you can trade Bonds on Cardano

Welcome to today's edition of our daily newsletter on the Cardano DeFi ecosystem. It's an exciting time for decentralized finance on Cardano, with numerous new platforms and products launching on the blockchain.

One of the most exciting new offerings is the introduction of Liquidity Bonds or SPO Bonds by Optim finance, which can now be traded on Cardano. To be specific, you can trade it on Muesli Swap.

In this edition, we'll delve into the details of SPO Bonds and how they are helping to drive innovation in the DeFi space on Cardano. And why can you only trade Bonds on Muesli Swap?

Stay tuned for all the latest updates and developments in the world of Cardano DeFi.

What is a Liquidity Bond?

Liquidity Bonds, also known as SPO Bonds, are financial products designed explicitly for the Cardano staking framework. These financial products allow lenders to loan out their staking rights to Stake Pool Operators (SPOs), who then use the staking rights to earn rewards on their ADA.

As a lender, you can participate in this process by locking your ADA in a smart contract and receiving one OBOND token for each 100 ADA locked. The smart contract then allows a borrower to attach their staking key to the locked ADA as long as they pay interest to the lender.

This allows the borrower to earn rewards on their ADA while you earn interest on your locked ADA. When the loan term is up, you can redeem the interest and locked ADA by holding the OBOND token.

Understanding the use case of the Liquidity Bond

Liquidity Bonds are a useful tool for Stake Pool Operators (SPOs) to increase the amount of ADA delegated to their pools. By using SPO Bonds, SPOs can consistently mint blocks, improve their return on investment, and demonstrate their operational proficiency.

This can help to attract sustainable community delegation, which is essential for long-term success as an SPO. SPO Bonds allow SPOs to boost their ADA delegation and improve their chances of success in the competitive world of staking on Cardano.

What's the purpose of OBOND tokens?

The holder of the OBOND token can redeem the interest and locked ADA that is associated with the Liquidity Bond. As a result, trading OBOND tokens is essentially the same as trading the Liquidity Bonds themselves.

The OBOND tokens represent fractions of the Liquidity Bonds, and holding these tokens gives you the ability to redeem the interest and locked ADA when the loan term is up. So, if you are interested in trading Liquidity Bonds, you can do so by buying and selling OBOND tokens on the market.

But what's the value of an OBOND token?

It's essential to understand how the value of these tokens is determined before you interact with them. Of course, there are many factors that can influence the value of OBOND tokens, but one thing is certain: at the end of the lending period, an OBOND token can be redeemed for at least 100 ADA from the smart contract.

In addition to this guaranteed value, OBOND token holders can also expect to earn interest on their tokens. The exact amount of interest will depend on a variety of factors, including the interest rate of the borrowing pool, the duration of the lending period, and other information that can be accessed through the Optim dashboard.

So what makes Muesli Swap the right platform to trade OBOND tokens?

MuesliSwap is an order book mode DEX, which makes it an ideal place to trade Liquidity Bonds (OBOND tokens). These bonds are difficult to trade through automated market makers (AMMs) due to their indivisible nature and AMMs are fundamentally inefficient compared to order books.

This is where MuesliSwap's order book comes in handy, as it allows for the seamless and efficient buying and selling of OBOND tokens. The platform's efficient order book, which is made possible by the E-UTxO ledger model of Cardano, makes it a prime choice for trading OBOND tokens and other assets.

Conclusion:

Liquidity Bonds, also known as SPO Bonds, are financial products designed specifically for the Cardano staking framework. They allow lenders to loan out their staking rights to Stake Pool Operators (SPOs) in exchange for interest and the ability to redeem their locked ADA at the end of the loan term.

SPOs can use Liquidity Bonds to increase their ADA delegation and improve their chances of success in the competitive world of staking on Cardano.

OBOND tokens represent fractions of the Liquidity Bonds and can be traded on platforms like MuesliSwap. The value of the OBOND token is influenced by factors such as the interest rate of the borrowing pool and the duration of the lending period.

That's it for the first week of 2023 of This Week In Cardano.

We hope you enjoy the new format, and we will be back next week with the major updates from the Cardano ecosystem as well as the L1 comparisons.

Interested in sponsoring this Newsletter?

💎 Gem of the Day 🧵

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