Fundrs Deep Dive — Getting To Know Bonq’s Decentralized Liquidity Platform and Their Upcoming Listing on Fundrs
With DUA Token’s first fundraising round already underway on Fundrs, AllianceBlock formally introduces Bonq as the second project launching through Fundrs. Bonq is a decentralized liquidity platform that helps projects create deep, protocol-owned liquidity for their native token.
In August, AllianceBlock launched Fundrs, a fully-decentralized peer-to-peer funding platform based on reputation and merit intending to build an inclusive, transparent and decentralized platform. Fundrs brings together Seekers (startups seeking to raise capital) and Funders (capital providers, professionals, knowledge experts, etc.) to cultivate a sustainable model for building community and meaningful collaboration.
Recently, DUA Token launched its first capital-raising round on Fundrs and is still underway until the 14th of December — you can find more on this here. Building on this, we are excited to announce today that Bonq, a self-sovereign lending service, will become the second project to feature on Fundrs in the next few weeks of December!
In this article, we’ll be diving deep into Bonq, looking at what the BonqDAO is, the purpose of the BNQ utility token and sharing more information about their launch with Fundrs. Let’s dive in!
What is Bonq?
Bonq is a decentralized liquidity platform helping any Web3 project to create deep, protocol-owned liquidity for their native token, built on a decentralized, non-custodial lending protocol and a formalized, data-driven risk model. The platform is built, operated and governed by the BonqDAO, a non-profit decentralized autonomous organization (DAO).
Bonq solves four critical problems for projects and protocols who have a native token. The platform;
- Allows them to borrow against their own tokens at zero interest;
- Creates a deep liquidity solution without the need to incentivize or pay the other side of the liquidity pool;
- Offers sustainable yields to their community members holding tokens in a safe and secure environment; and
- Allows Treasuries to de-risk and create a smart capital allocation.
Bonq is not just for Web3 projects, it can also be used by a broad community of token holders, who can leverage the platform to borrow against their holdings such as ETH, MATIC, ALBT and other digital assets. Users can also use their USDC and DAI stablecoins to generate low-risk, sustainable yields.
A dedicated team of experts with a wealth of experience runs the BonqDAO. Their CEO Delia Sabau has deep experience in traditional finance, working for many years at Blackrock; their CTO Micah Roon has experience in leadership positions at prominent blockchain project Energy Web, and Michal Bacia is a Token Economics specialist advising many innovative DeFi projects.
The value and role of the BNQ token
BNQ is the native utility and governance token of the Bonq protocol, which provides several interrelated functions. The token can be used in many ways and incentivizes users to hold and stake BNQ:
- The BNQ token provides free or discounted access to the Bonq platform and its different services. Users who stake BNQ will receive cashback which can be used to offset service fees.
- BNQ enables projects and communities to whitelist their native token so that it can be utilized as collateral for loans. Projects have to stake BNQ to participate in this.
- Holders who have taken out loans on Bonq can use BNQ to repay their BEUR using the cashback mechanism automatically.
- Users will receive a share of the redemption fees when BEUR is redeemed against collateral.
- The token will also enable the token holder to participate in the BonqDAO governance process.
In the future, and as Bonq establishes itself, the BNQ token could be available on various centralized and decentralized exchanges. At launch (and after the Fundrs exclusive listing), users can only earn BNQ by depositing BEUR into Bonq Stability Pools and providing liquidity to the selected BEUR liquidity pools.
Overall, BNQ plays a central and essential role in the operation of Bonq, its utility is derived from user demand for the platform and its services. Enabling the exclusive access of Bonq via Fundrs will give the AllianceBlock community first access to this innovative platform and is a continuation of an ongoing and advantageous partnership between AllianceBlock and Bonq.
BEUR — A Euro Stablecoin
Bonq allows users to borrow against their token assets without selling them. Users deposit their tokens (for example, ETH) as collateral to a smart contract called a Trove. They can then mint and withdraw BEUR, a decentralized, permissionless stablecoin backed by the over-collateralized assets of borrowers and soft pegged to the Euro.
Loans are subject to a one-time issuance fee of 0.5%. To keep the BEUR/EUR peg, the issuance fee may fluctuate up to a maximum of 5% to limit the supply of new BEUR. For example, if the value of BEUR is below € 1.00, fees will increase, leading to fewer loans and a tighter monetary supply. BEUR also features other incentive mechanisms and runs arbitrage bots to maintain its soft peg to the Euro and stabilize liquidity across various exchanges.
BEUR holders can deposit the token into a Stability Pool and are then rewarded with a yield generated from the collateral on loans that become liquidated, acting as a BEUR arbitrage. Liquidated borrowers keep their BEUR, and all their collateral is distributed to these Stability Pools. When a liquidation occurs, contributors to this pool will receive BNQ rewards in proportion to their deposit.
The platform’s protocol is governed by the BonqDAO, an inclusive body encompassing its founding members, projects which use Bonq services for their native tokens, and BNQ holders who stake their tokens.
Earn BNQ in exclusive Bonq liquidity mining campaigns through Fundrs and DeFi Terminal
Through Bonq’s listing on Fundrs, users will get exclusive early access to earning BNQ tokens for two weeks. Funders with enough rALBT will be able to participate and provide capital to tier-based liquidity mining campaigns on DeFi Terminal and earn BNQ reward tokens — with up to 3 million BNQ tokens allocated for rewards through these exclusive campaigns.
Upon launch, there will be three token pairs with tier-specific liquidity mining campaigns on DeFi Terminal:
- USDC/BEUR
- DAI/BEUR
Getting access to the campaigns requires spending rALBT. This will be communicated as we get closer to the Bonq listing. Each Fundrs Tier (Platinum, Gold, Silver, Bronze and Member) will have specific liquidity mining campaigns accessible to them. However, Funders on higher tiers can participate in campaigns allocated for the lower tiers — giving them the flexibility to spread their liquidity provision across more pools.
The campaigns will be fully permissionless, so there is no requirement to share verified KYC reports with Bonq. Users only need enough rALBT and the tokens (ALBT, USDC, or DAI; and BEUR) they prefer to provide liquidity with.
Users can only earn BNQ tokens exclusively for the first two weeks by providing liquidity to these campaigns on the DeFi Terminal. After two weeks, users can get BNQ tokens by trading on the DEXes or by staking BEUR on the Bonq platform.
This is another exciting milestone for AllianceBlock’s reputation system through the rALBT token, with DeFi Terminal as the second solution integrating rALBT into the platform, boosting its utility. This integration unlocks more ways for startups to launch their token with Fundrs and set up initial liquidity on decentralized exchanges. Seekers can list on Fundrs to access a community of knowledgeable and engaged Funders. On the other hand, Funders have a new way to contribute and play a key role by providing liquidity for startups’ tokens and participating early in their growth.
And as with liquidity mining campaigns, the barrier of entry for users is minimal. Users can provide liquidity, withdraw it at any time and still receive rewards depending on the time they have participated.
Getting Ready for Bonq’s Listing
In the next few weeks, we will be communicating more about Bonq’s launch, including specifics on the rALBT users need to access per campaign and the BNQ rewards allocated for each. We will also publish a guide on participating in exclusive liquidity mining campaigns through Fundrs and DeFi Terminal.
Users can get ready by staking ALBT on Fundrs and earning reputation points in rALBT. We have published a handy calculator to determine the amount of rALBT users can earn per day, depending on their stake amount. Stakers in AllianceBlock’s #NoMercy 2- and 4- year campaigns have received reputation points for their participation, including a bonus of 5,000 or 10,000 rALBT, depending on the campaign they joined.
Currently, over 43.9M rALBT is staked on Fundrs, with over 80.9M reputation points earned by Funders.
We are excited to be partnering with Bonq for this initiative and are even more excited to have our second Seeker launch announced on Fundrs. To learn more about Bonq, visit their website, read their whitepaper, join their community on Telegram, and follow them on Twitter.
This also marks an important step towards integrating our reputation system into more AllianceBlock solutions and the ongoing work of creating seamless interoperability across our end-to-end infrastructure.
This is an exclusive opportunity for the AllianceBlock community to be part of Bonq’s launch, gain early access to BNQ tokens and, more importantly, be part of their community. Through Fundrs, we continuously strive to unite Seekers and Funders and create a sustainable path for community growth and partnership. And with this step forward with DeFi Terminal, we are unlocking new possibilities for Seekers to launch their projects and for Funders to participate in their growth.
About AllianceBlock
AllianceBlock is building seamless gateways between TradFi and DeFi. We develop an end-to-end infrastructure leveraging decentralized technology to empower individuals, startups and businesses to build decentralized, secure and compliant solutions that accelerates their vision.
We aim to be the industry standard for DeFi development and TradFi adoption through our interoperable and composable suite of solutions and compliant products.
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