SW DAO’s Bonds Program

Sell SWX Tokens for a Fixed Yield Over 2 Years

Sun Invest
6 min readAug 19, 2022

The SW DAO ecosystem just got a lot more interesting! We’ve just launched our Bonds Program; with these fixed yield assets, you can now sell your SWX tokens back to the DAO for a fixed and guaranteed yield over two years, paid in SWD Tokens.

Our current rate is a two-year bond trading at 10% interest which is paid linearly over the term. There is no initial lock up or minimum; your initial capital plus yield earned will be updated and can be claimed every block.

So if you’re looking for stability and a steady return on investment, bonds are the way to go!

SW DAO Bonds

SW DAO Bonds are the perfect investment for consistent, reliable income. By locking up and selling your SW Index (SWX) tokens to the DAO, you can earn a yield on your investment for two years. With SW DAO Bonds, you’ll have peace of mind knowing that your money is consistently earning a fixed income.

So why invest in SW DAO Bonds? First, they offer a guaranteed return on your investment. You’ll know exactly how much money you’ll earn throughout the bond so that you can plan accordingly. Secondly, they’re incredibly easy to set up and manage. All you need to do is purchase some SWX tokens, deposit your SWX on our dApp, and then let our smart contract do the rest.

How SW Bonds Work

SW DAO bonds offer a simple and transparent way to earn a yield on your crypto investments.

By connecting your Polygon wallet to our dApp and purchasing the SW Index (SWX) token, you can sell back (deposit) your SWX tokens to the DAO in exchange for your initial capital plus a fixed yield paid linearly in SWD token over a horizon of 2 years.

How to Purchase Bonds

Purchasing bonds through the SW DAO platform is a simple and efficient process. First, you will need to purchase SWX Tokens through the dApp. This can be done in the traditional conversion format.

Once you have the SWX tokens in your wallet, you can head to the bonds page and select how much you want to deposit. After permitting wallet access, you will need to confirm your deposit. The final step is to sit back and watch your “available to withdraw” yield grow block after block.

This secure and efficient process provides users a straightforward way to invest in our bonds.

Step 1 — Head to the Bonds Page.

The current bond page modal.

Step 2 — Click “Deposit SWX” and enter your desired amount.

The current deposit modal.

Step 3— Permit to access your SWX.

Metamask SWX access permission.

Step 4— Confirm the deposit transaction.

Metamask transaction confirmation.

Step 5 — Sit back and enjoy the yield!

Successful bonds deposit confirmation.

Claiming Your Yield

The process of claiming your yield on SWD is straightforward. To begin, just click the “Claim SWD” button. Then, confirm the withdrawal in your wallet, and finally, sit back and wait for the smart contracts to process your withdrawal. You will see the transaction confirmation first, followed by an updated “available to withdrawal” panel once the balance update has been reflected on-chain.

That’s it! You can easily claim your yield on SWD with just a few clicks. So what are you waiting for? Get started today!

Step 1 — Click on “Claim SWD”.

SWD Bond Issuer modal.

Step 2— Confirm the withdrawal transaction.

Withdraw yield confirmation in Metamask.

Step 3— Wait until the transaction is reflected on-chain ( < 30 seconds), and then check your wallet for the new SWD deposit.

Yield claimed successfully.

Where is the yield coming from?

The interest earned on SW DAO bonds comes from the 6% of our tokenomics initially dedicated to Liquidity Mining. These 60,000 SWD tokens are being refashioned for their original purpose, just with a new name.

All of the tokens included in this program have already been set aside, and when current stakers claim all future tokens, the bond pool cannot be entered by new participants. The maximum yield earned from these bonds is 40%, as set by SWIP-07. However, the actual yield will depend on market demand.

Who are SW Bonds right for?

If you are looking for a dependable way to earn a yield on your capital outlay, then SW DAO bonds are perfect. With guaranteed capital outlay and a fixed yield, these bonds offer a great way to earn SWD tokens without purchasing them directly on the open market.

With a preallocated SWD token outlay, we are only issuing bonds that can be satisfied, meaning that the yield you see on deposit day is guaranteed over the term. This makes SW DAO bonds an excellent choice for investors looking for a safe and reliable way to earn a return on their investment.

Why are we issuing bonds?

Bond issuance offers a reliable way for SW DAO to deepen liquidity depth on DEXs. The idea behind bond issuance is that participants are incentivized to provide liquidity for a more extended period, with less market selling expected to occur as soon as the liquidity mining program ends. This model also enables SW DAO to increase product TVL simultaneously.

The bond issuance model was inspired by OHMs liquidity buyback model, which we initially sought to adopt instead of the traditional liquidity mining model. Bond issuance provides a more sustainable and effective way to incentivize liquidity providers. We hope this will create deeper liquidity pools on DEXs, leading to increased product TVL and a more efficient market overall.

About SW Index

SW Index is a tokenized index built on the Balancer protocol that holds SWD, USDC, Quantum Momentum Ethereum, and SW Yield Fund. The SWX token is the core asset used for liquidity provisions of the SWD token and is the asset used in bond sales. This token provides the best products that SW DAO has to offer, all wrapped up in a single product.

Current Constituents:

  • 50% SWD Token
  • 20% USDC
  • 15% Quantum Momentum Ethereum
  • 15% SW Yield Fund

Upcoming Design Modifications

The next four weeks are going to be big for our bond page. We're redesigning the whole thing from top to bottom, and when we’re done, you’ll be able to do things like swap any asset into bonds, view your estimated yield earnings on an interactive calculator, and see the yield and recent transactions in an easy-to-understand format.

The current wireframe of the new bond page.

The bond program is a vital part of our long-term plans to offer dependable and fixed yield and funding for our DAO’s exchange liquidity; with these modifications to the design page, we hope to educate current community members about the advantages of this program and attract new viewers at the same time. Thanks for your patience as we make these improvements!

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