How SuperBonds Unlock Fixed DeFi Income

  • What fixed income is
  • What bonds are
  • Why fixed income products are rare in DeFi
  • How SuperBonds changes the DeFi bond game

What is Fixed Income?

What are Bonds?

  • They have predictable returns and provide information about the health of a government’s / company’s finances.
  • They provide a stable flow of income because bonds with a maturity date longer than one year have yearly interest payments.
  • They are a way of preserving capital: investing in the bonds of a stable government is the safest investment available. (Of course, there are also risky bonds, so-called junk bonds).
  • Bond markets are massive, and the main way for institutional investors like pension funds to invest their capital. A country’s pension fund cannot simply invest in an asset like Bitcoin — the market is too small (and too risky), so the fund invests a good chunk in bonds.

Why DeFi Lacks Bonds & Fixed Income Products

How SuperBonds Unlocks a DeFi Bond Market

  • Bond trader Joe is a retail investor that wants to try fixed income. He buys a 30-day bond for 10K USDC at an 8% APY (annual percentage yield). On a one-month investment, he will thus receive about 0.67% on his principal.
  • Bond trader Jamie is a big institutional fish looking for a DeFi bond market. He cops a 90-day bond for 1M USDC at a 14% APY. On a three-month investment, he will thus receive 3.5% on his principal.
  • A group of liquidity providers (LPs) is happy to provide liquidity because they expect to make a higher return through deploying their capital to SuperBonds. They provide the capital to pay out Joe and Jamie.
  • The SuperBonds platform utilizes the provided liquidity and deploys it through Wormhole to farm yield in various protocols.

Conclusion

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SuperStable

SuperStable

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DeFi’s first on-chain fixed-yield market: Guaranteed Yield. Self-Custody. Built on Solana