# Announcing YeetBonds

By [Yeet 🏆](https://paragraph.com/@yeetit) · 2024-08-19

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Proof of Liquidity on Berachain is a gamechanger. Protocol Owned Liquidity is extremely important. When combined with each other? Wow, [big amazing](https://mirror.xyz/yeetit.eth/Q1LL6MhkY9HFKnOOHoBhfgXPjGv2OFy-GwXdkPfFP1E).

As Yeetards, we firmly believe in the importance of these benefits. That is why we are launching **YeetBonds**, the best way for Berachain protocols to build **Protocol Owned Liquidity (POL)**, on the **Proof of Liquidity chain (POL)**, to harness what we call **POL²**.

What are YeetBonds?
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*   The YeetBonds marketplace is where protocols and users can exchange tokens in a discounted, slippage-free, and permissionless way
    
    *   Protocols issue a YeetBond of their token, which buyers can purchase
        
    *   YeetBond sales are slippage-free because they are peer-2-peer, and do not use an AMM
        
    *   A YeetBond is a sale of tokens at a discount to market price, with a short lock-up period (typically 2-7 days)
        
*   Protocols can use YeetBonds to acquire any ERC-20 token: it could be stablecoins, LP tokens, or other strategic asset
    
*   Community members and buyers can use YeetBonds to acquire protocol tokens at a discounted price, and benefit ecosystem protocols. Win-win, and furthermore Yeet.
    

Who cares?
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*   Our main partner for YeetBonds: [Bond Protocol](https://x.com/Bond_Protocol)
    
*   Our main bonding partners, who work with us to bring these benefits to the Bera ecosystem: [Infrared](https://x.com/InfraredFinance), [Kodiak](https://x.com/KodiakFi), and [Ramen Finance](https://x.com/ramen_finance)
    
*   The protocols that plan to issue bonds: [Beraborrow](https://x.com/beraborrow), [Ramen](https://x.com/ramen_finance), [Vase Finance](https://x.com/VaseFinance), [IVX](https://x.com/ivx_fi), [Goldilocks](https://x.com/goldilocksmoney), [Burrbear](https://x.com/moneygoesburr), among others
    

Why is this important?
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![POL²](https://storage.googleapis.com/papyrus_images/c757c9e4e2c98015a924eaaef077a4b598218859792ff247f20a7480700a0160.png)

POL²

*   Bonding in LP tokens means protocols can own their own liquidity. Owning your own liquidity means:
    
    *   You can pay less bribes and liquidity mining incentives to yield farmers to maintain your pool liquidity, as you own it yourself
        
    *   This means you can reduce token inflation in the medium/long term
        
    *   Improve liquidity health
        
    *   Farm $BGT (or liquid versions) as a treasury (instead of this going to external LPs)
        
*   The benefits protocols gain by having Protocol Owned Liquidity, are further turbocharged on Berachain as protocols can farm $BGT: the non-transferrable native governance token
    
    *   Liquid versions such as Infrared’s $iBGT may also be farmed instead
        
    *   These benefits are what we refer to as [POL²](https://mirror.xyz/yeetit.eth/Q1LL6MhkY9HFKnOOHoBhfgXPjGv2OFy-GwXdkPfFP1E)
        
*   You can raise more cash or acquire strategic assets after your token launch by issuing YeetBonds
    
    *   This is like selling tokens OTC, which does not affect the price on DEX/CEX as it would if the protocol was selling there
        
*   It allows buyers to acquire Berachain ecosystem tokens **at a discount**
    

Practical Guidelines
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*   Healthy liquidity for a token is usually when pool TVL is 10-20% of token FDV
    
*   A good target for Protocol Owned Liquidity, is 60-80% of pool TVL
    
    *   This is not attainable in one bond, but rather with a prolonged bonding program
        
*   Runway: protocols should aim to have 6-12 months of runway in stablecoins in the treasury
    

Who can use this?
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*   Any protocol on Berachain
    
    *   This can be used to build more Protocol Owned Liquidity by bonding in LP tokens
        
    *   Bonds can be used to raise more money by bonding in stablecoins
        
    *   Bonds can also be used to diversify treasuries and accumulate strategic assets, such as $iRED and $oBERO
        
*   Any large holder of a token that wishes to exit without large slippage, and access a larger number of buyers than a normal OTC trade
    
*   Any Yeetard in the ecosystem that wants to buy tokens for cheaper than market price
    

Yeetardio
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We just Yeet.

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*Originally published on [Yeet 🏆](https://paragraph.com/@yeetit/announcing-yeetbonds)*
