Magpie Bonds Concept

Hi All,

It’s been awhile since my last proposal. Here I present a “Real Yield” concept for Magpie, so called “Magpie Bonds”.

Firstly, will need Magpie team to use treasury fund to buyback some MGP from the market and reserve them as Bonds resources.

Bonding, refers to the process of locking up a certain amount of tokens in order to receive additional rewards or benefits. Magpie Bonds allow Magpie to acquire liquidity and assets by selling discounted MGP from Bonds resources.

For initial launch, Magpie could accept BNB & WOM as payment to buy MGP at discount price. The MGP Bonding price to be determined by vest schedule chosen by buyer (the longer the cheaper), current market price, market cap and backing. For sure we will need a formula for this bonding price.

The buyer won’t get their MGP until the vesting done, it could be 1 ~ 6 months, depends on buyer selection. However, buyer could receive a certain amount of bMGP as return which certified they are also MGP holder and allow to “Stake” in MGP pool for stake rewards (while waiting for vesting completion), but not allow to “Lock” and no benefit from Bribe system.

Alright, that’s how Bonds market works, but how’s the Bonding mechanism works? and how will it benefit to Magpie and others?

For the Team:

  1. The use of bonds as a financing tool allows Magpie to raise capital and increase its financial flexibility, enabling it to pursue new opportunities and drive growth.
  2. The team can utilize the acquired BNB & WOM as liquid staking assets. For example, convert BNB into BNBx and stake in Wombat pool, then sharing all the revenue to the vlMGP holder.
  3. Also, the team can convert WOM into mWOM and stake in Wombat pool and share revenue to vlMGP holder. Doing so also helping maintaining a healthier peg against WOM.
  4. The team can also convert WOM into wmxWOM & qWOM in the situation that it helps generate more revenue compared to mwom pool in that particular time and without hurting the peg. The collected wmx & quoll can also be dump in the market and share revenue to vlMGP holder, strategy move to dump competitor’s token.
  5. 10% of bond sales to be allocated to vlMGP holder in the form of WOM & BNB directly.
  6. Some revenue to be used to buyback MGP from market and allocated as Bonds resources for continuous bond sales event.
  7. No more WomUP for free MGP. MGP must be the precious TOKEN!
  8. Create arbitrage opportunity of MGP in the market! MGP price is too boring! It needs to MOVE!
  9. Bonds price is kinda giving the market a guide/base price for MGP token, and most likely to be follow WOM as one of the payment method. We can always display everywhere 1 WOM = ??? MGP, we need to tie MGP price to WOM !!!

For Buyer:

  1. Purchase MGP at discount price and yet can stake to earn rewards while waiting for vesting completion.
  2. Perfect arbitrage opportunity if sell the MGP at right price.

For vlMGP holder

  1. More Real Yield sharing in the form of WOM & BNB.
  2. Higher APR
  3. More reason to keep holding!
  4. Buyback from TEAM !

Great idea, @ksl! Real Yield is definitely the way to go. This is a good post, and it would be cool to explore the possibilities of implementing it. Thanks for your support.

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