Understanding SuperBonds (A walkthrough of Devnet)
A bond is a loan between the issuer of the bond (borrower) and the investor for the bond (lender). In this ‘arrangement’, the investor receives fixed income earnings in the form of interest payments and the return of principal upon the maturity of the bond.
A zero-instalment bond shows the interest that’s payable by carrying a discount to its terminal value. Zero-instalment bonds are issued in the form of Non-Fungible Tokens on the SuperBonds platform. Upon maturity, the buyer will get an amount minus the fees that equals the difference between what the buyer paid for the bond and the price value of the bond at maturity.
Non-Fungible Tokens (NFTs) are unique digital assets that are non-interchangeable. While a fungible token (Bitcoin for example), can be swapped with another without any difference, an NFT cannot be swapped for another NFT. The scarcity of an NFT because of its uniqueness is extendable to the concept of ownership in the digital space where financial assets are represented with demonstrable ownership. In this context, NFTs can be termed as Financial NFTs.
Both Bonds and Financial NFTs are some of the ways to get started on the SuperBonds platform and in this article, we talk about them — and others — and a walkthrough of the entire devnet.
Claiming TestNet SOL, SB & USDC
An easy way to get started on the SuperBonds platform is claiming free test tokens that you can use on the platform. To do this, you first have to:
- Visit the SuperBonds platform and set the network to devnet, both in your wallet and on the platform.
- Then you select your SPL wallet from the menu
- After doing the above, you can then click on the Get Free SOL button to claim your test tokens
- For Free SB/Free USDC, you have to approve the transactions and pay the transaction fee to receive your test tokens
Buying your First SuperB NFTs
If you’re not looking at claiming free tokens to help you get onboard the SuperBonds platform, you can start your journey on SuperBonds by buying a SuperB NFT. To do this, you have to:
- Select trade from the menus listed on the homepage screen. From the drop-down menu in the upper right corner, you can then select your wallet
- The next thing you should do is check in settings and make sure the network is on devnet
- Next you check your USDC Balance and enter the par units. The minimum allowed amount for a trade is 5 USDC
- Click on trade after confirming the fees.
- To complete the trade, you have to approve the transaction in your SPL Wallet
- Check that you get a successful trade notification at the bottom left corner of your screen
- Finally, you can then check the just-completed trade under the ‘My Trades’
Becoming a Liquidity Provider
Becoming a liquidity provider (LP) is another way to get started on the SuperBonds mainnet. To be an LP, you have to first:
- Go to the Liquidity page from the menus listed on the homepage screen and select the wallet you wish to use from the drop-down menu.
- After doing the above, you enter the amount of USDC you want to add as liquidity and click on ADD.
- Next you approve the transaction to complete the process.
- Check that you get a successful trade notification at the bottom left corner of your screen to show that you’ve successfully added liquidity. You should also check your LP token balance.
Claiming your NFT
You can transfer and receive NFTs from/to your SuperBonds account. All that is required to do this is a valid SPL address for receiving the NFT and payment of the gas fees for the transaction. There’s a need for the receiver of an NFT to claim any NFT transferred to them because any SB rewards that are associated with the Bond NFT will continue accruing to the sender’s account till the new owner claims the transferred NFT.
It is important to note that any unclaimed rewards by the original NFT owner will stay put in the rewards pool once the transfer has been completed. Once claimed, the Bond NFT will be displayed under the new user’s NFT collection on the SuperBonds platform. Below are some steps you can follow to claim your received NFTs.
- Go to the ‘My Account’ section listed in the menus on the homepage and check for NFTs that you have in your SPL wallet but don’t show under My Bond NFTs. These are Bond NFTs you have received but have not claimed yet.
- You can then copy the NFT address and paste it in the input bar for ‘Claim Transferred NFT’
- After doing the above, you should click on the CHECK button to see the details of the NFT you’ve received
- Click on claim and then approve the transaction
- Finally, click on the ‘Show my Bond NFTs’ button. Your NFT will now be listed there.
About SuperBonds
SuperBonds is a platform that employs financial NFTs to facilitate DeFi’s first bond market. With SuperBonds, traders can buy fixed yield bonds in the form of financial NFTs that are redeemable anytime. These bonds can be self-custodied and can be utilised as collateral elsewhere.
Liquidity Providers who underwrite the bonds, have access to multiple revenue streams via the SuperBonds platform to incentivise the creation of yield-bearing NFTs with a definitive Yield-To-Maturity (YTM). All of these are powered by the SB token, which is the gas that is paid for every transaction on the SuperBonds platform.
