Bonding

Bonding is the process of trading an LP share to the protocol for NEND.

It allows users to buy NEND at a lower cost basis. It is designed to both incentivize and lock the liquidity so that NEND protocol can acquire its own liquidity and other reserve assets by selling users NEND tokens at a discount.

Users who bond their assets for NEND reap the same benefits as stakers as NEND is automatically staked at the time of a bond purchase. NEND compensates users with more NEND than users would get on the market, but users exposure becomes entirely to NEND and no longer to LP share.