Treasury Bonds
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NOTE: There is No Direct Access to Compound Staking: Please Read
There is no direct method to stake in the compound staking pool as of March 2022. Users must use Treasury Bonds or Programs to be able to Claim and Stake their PRXY rewards. Claim and Stake is a one click function that opens the access to the compound staking.
Treasury Bonds are the secondary value accrual strategy of Proxy. It allows BTC Proxy to acquire its own liquidity and other reserve assets such as USDC or BTCpx by selling PRXY at a discount in exchange for these assets. The protocol quotes the bonder with terms such as the bond price, the amount of PRXY tokens entitled to the bonder, and the vesting term. The bonder can claim some of the rewards (PRXY tokens) as they vest, and at the end of the vesting term, the full amount will be claimable.
Bonding is an active, short-term strategy. The price discovery mechanism of the secondary bond market renders bond discounts more or less unpredictable. Therefore bonding is considered a more active investment strategy that has to be monitored constantly in order to be more profitable as compared to staking.
Bonding allows BTC Proxy to accumulate its own liquidity. More protocol owned liquidity ensures there is always locked exit liquidity in our trading pools to facilitate market operations and protect token holders. Since BTC Proxy becomes its own market, on top of additional certainty for PRXY investors, the protocol accrues more and more revenue from LP rewards bolstering our treasury.
