Project Name: Bond
Project Track: Builder
Team Name: USTX Team
Team Member(s): 3, Sirluke, Benna, Aska
Devpost Project Link: tbd
Project Goal: Create a bond emission - redemption mechanism for the USTX ecosystem to strengthen the project and provide a safety net for users.
Project Value: USTX Bond fits into the ecosystem that is growing since the start in 2021. Decentralization is a defining value for all the products and Bond is no different. Tron blockchain is a robust and safe architecture to host Bond smart contracts. Emission and redemption is all handled on-chain, for maximum security and best user experience. The UI has the same look and feel of all other USTX dApps to improve user acceptance.
Project Info:
PitchDeckGH6.pdf (486.8 KB)
Project Website: USTX BOND
Project Test Instructions:
Prerequisites:
- USTX and USDT test tokens (DM to get some)
- Tronlink account with some test TRX on it
Unlock Tronlink, select Nile network and go to USTX BOND
The user will show all possibile actions.
- Emit new bond. Select desired USTX amount and click “EMIT”. A popup will require confirmation before proceeding. Sign TX on Tronlink: first to approve USTX spending and then the actual creation if the bond. After you’ll see you bond position in the user section in the lower part of the window.
- Redeem an existing bond. Select the desired USTX amount and click on “REDEEM” or “REDEEM&BURN”. You will be asked the confirmation with a popup. Sign TX on Tronlink: first to approve USDT spending and then the actual operation. The bond emitter will receive USDT (- 5% in fees) and the user will receive the USTX claimed. WARNING: if you select “REDEEM&BURN” you’ll get nothing, because the USTX will go the blackhole address
- Withdrawing a bond. If a user changes his mind, it’s possible to recall an already emitted bond, limited to the amount that has not been redeemed yet.
Project Details:
Intro
The USTX ecosysten has been generating rewards for its users since 2021 through the several dApps developed over the years, like Staking, WARP, T-Boost and Ergon, but this has not meant a corresponding reflection on USTX token price. With Bond the aim is to create a safety net for all users by decreasing the sell pressure on the token and giving more confidence about the long term resiliency of the project.
Bond emission
- Every user can emit a new bond by committing a certain amount of USTX to the Bond dApp.
- The price is set automatically at 0.01USD (USTX launch price)
- An emitted bond can be withdrawn at any time by the user, without any penalty.
Bond redemption
- Every user can redeem a bond, by purchasing the underlying USTX at 0.01USD value
- A tax of 5% will be applied to the bond emitter. So when a 10000 USTX bond is redeemed, the emitter will get 95USD and 5USD will be taken as fee.
- When there are pending bond emissions, 80% of USTX protocol rewards will be routed to bond redemption. Additional resources will be allocated by the team depending on pending amount
- When the bonds are redeemed by the team, the underlying USTX will be BURNED
- The bonds are redeemed based on time of emission, in FIFO order
Risks
As always, we want informed users, so here’s our risk assessment for Bond:
- smart contract risk: we carefully designed and tested the contracts on Nile and mainnet, but human error can never be excluded 100%;
- the time in which the bond are redeemed depends on the amount of resources available.
- This is not financial advice, DYOR.
Key points
- Innovation: Protecting user investment value is not common in the crypto industry, expecially for small projects like USTX. The team effort are currently oriented to preserve user confidence and value.
- Tech details: Bond works base on a smart contract deployed on Tron network. 100% decentralized.
- Business Model: The bond system kicks in only when needed, if USTX price fells below launch price. At that point arbitrage opportunities arise and users can gain from the market price difference. Whenever there are outstanding bonds, the team is obliged to divert 80% of the protocol revenue to bond buyback and burn of collected USTX.
- User Experience: UI has been kept as simple as possible and shares the basic design with all other USTX ecosystem dApps, so that existing users can quickly learn how to use it.
- Use Case: Users are seeking active protection of the invested value. Bond aims to increase user confidence and put a solid support line on USTX price at launch level.
- Contribution to the ecosystem: We believe that ensuring a safe access to DeFi is one of the key to success of the crypto industry as a whole. Bond increases the resiliency of USTX ecosystem towards long term sustainability and profitability.
Smart Contract links:
Bond Proxy (Nile)
Bond Logic (Nile)
Project Milestones:
- May 7th, deploy smart contracts on Nile and open dApp to users for testing
- June 14th, deploy smart contracts to Mainnet
- June 28th, integration is complete and Bond is operational for users