# Announcing YeetBonds

**Published by:** [Yeet 🏆](https://paragraph.com/@yeetit/)
**Published on:** 2024-08-19
**URL:** https://paragraph.com/@yeetit/announcing-yeetbonds

## Content

Proof of Liquidity on Berachain is a gamechanger. Protocol Owned Liquidity is extremely important. When combined with each other? Wow, big amazing. 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?The YeetBonds marketplace is where protocols and users can exchange tokens in a discounted, slippage-free, and permissionless wayProtocols issue a YeetBond of their token, which buyers can purchaseYeetBond sales are slippage-free because they are peer-2-peer, and do not use an AMMA 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 assetCommunity 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?Our main partner for YeetBonds: Bond ProtocolOur main bonding partners, who work with us to bring these benefits to the Bera ecosystem: Infrared, Kodiak, and Ramen FinanceThe protocols that plan to issue bonds: Beraborrow, Ramen, Vase Finance, IVX, Goldilocks, Burrbear, among othersWhy is this important?POL²Bonding 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 yourselfThis means you can reduce token inflation in the medium/long termImprove liquidity healthFarm $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 tokenLiquid versions such as Infrared’s $iBGT may also be farmed insteadThese benefits are what we refer to as POL²You can raise more cash or acquire strategic assets after your token launch by issuing YeetBondsThis is like selling tokens OTC, which does not affect the price on DEX/CEX as it would if the protocol was selling thereIt allows buyers to acquire Berachain ecosystem tokens at a discountPractical GuidelinesHealthy liquidity for a token is usually when pool TVL is 10-20% of token FDVA good target for Protocol Owned Liquidity, is 60-80% of pool TVLThis is not attainable in one bond, but rather with a prolonged bonding programRunway: protocols should aim to have 6-12 months of runway in stablecoins in the treasuryWho can use this?Any protocol on BerachainThis can be used to build more Protocol Owned Liquidity by bonding in LP tokensBonds can be used to raise more money by bonding in stablecoinsBonds can also be used to diversify treasuries and accumulate strategic assets, such as $iRED and $oBEROAny large holder of a token that wishes to exit without large slippage, and access a larger number of buyers than a normal OTC tradeAny Yeetard in the ecosystem that wants to buy tokens for cheaper than market priceYeetardioWe just Yeet.

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