Bond by USTX Team - Enabling USTX long term sustainability

Project Name: Bond
Project Track: Builder
Team Name: USTX Team
Team Member(s): 3, Sirluke, Benna, Aska
Devpost Project Link: https://devpost.com/software/ustx-bond
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 [DONE]
  • June 14th, deploy smart contracts to Mainnet
  • June 28th, integration is complete and Bond is operational for users
28 Likes

Welcome to hackatron season 6, the USTX Bond Team. We look forward to knowing more about Bond when more details is added.

4 Likes

Hi can you give a easy intro to the projec please?

1 Like

OG, welcome
Wishing you all the best

3 Likes

I easily noticed the pattern of bond as in James Bond 007, welcome to Hackathon Season 6.

How will the team incentivize users to participate in the bond emission and redemption process?

2 Likes

In a few words Bond is a safety net to protect USTX price from falling below launch price. We want our long term user to be able to look ahead with confidence. The bond emission-redemption mechanism will put a lower limit to USTX price, allowing for arbitration with market prices if the USTX price will ever go below launch price.
A user emitting a bond will commit a certain amount of USTX waiting for it to be redeemed at 0.01USDT per USTX.
The team will redeem the bonds using 80% of the protocol revenue and burn the USTX claimed.

3 Likes

Hi Manfred, thanks for the question. If the price of USTX on the market goes below 0.01, arbitrage allows to make profit on price difference (between market and bond).

3 Likes

Welcome back to hackaTRON team ! Bond is interesting concept to keep the ustx price at and above 0.01. How does this work? How is bond ensuring that USTX price will not fall below launch price?

3 Likes

Any user can emit a bond at fixed price of 0.01USDT. Over time that bond will be redeemed and the user will get the corresponding USDT amount (deducted the 5% fee).
This means that market DEXs will be arbitraged against bonds that have a fixed 0.01USDT price. If market price goes below 0.01, buying on market and emitting a bond will generate a profit for the user. This mechanism will keep the price anchored close to 0.01.

5 Likes

Welcome team Bond to grand hackathon season 6.
Is there any possibility of users emitting multiple bonds simultaneously or is there a limit to how many bonds one user can emit at a time

2 Likes

Okay and the 5% fee will be revenue for the platform? If you win a prize money in this hackaTRON how do you plan to utilize the prize money?

3 Likes

There are no limits. All bonds emitted by a user will be compounded into one.

2 Likes

Half of the prize money will go to a bonds redemption fund, the rest will be used to increase the ecosystem revenue and pay expenses.

3 Likes

Good to know ! Can’t wait test out the Bond. Good luck to USTX team !

4 Likes

Welcome to Season 6 of the Hackathon, your project resemble James Bond, how would you boost community engagement, thank you

1 Like

Welcome buddy to hackathon season 6, without doubt USTX is taking a bold step to address token price stability and boost user confidence with the introduction of Bonds.

2 Likes

Hi, thanks for your reply.
The observation of an arbitrage opportunity arising when the market price of USTX falls below the bond redemption price of 0.01 USD is noteworthy.

How will the team monitor and manage arbitrage opportunities to prevent market manipulation and ensure the Bond mechanism’s effectiveness?

2 Likes

Welcome!! I will get information.

The team will not “manage” the arbitrage opportunities, we believe in free market. Every user can do arbitrage. We don’t see risks of market manipulation associated with bonds, since the price is fixed.

2 Likes

We are in this space since 2021, we have a loyal community of users following our moves on X, TG and this forum, plus many friends. I believe that the Bond proposition will be known to all interested users.

3 Likes