Why delete bond

Why Discard Traditional Bonds?

We abandoned the traditional bond concept and adopted the Bonstake model because Bonstake better integrates the advantages of staking and bonding while addressing key issues found in traditional bonds.

Enhanced Liquidity and Collateral:

• Sustainable Returns: Unlike traditional bonds that focus on token acquisition, Novai Finance allocates 20% of funds to liquidity pools and another 20% to purchase a basket of ETF assets as collateral. This dual approach strengthens platform stability and liquidity, ensuring a solid financial foundation for the ecosystem.

Structured APY Model with Referral Incentives:

• Bonstake Innovation: Unlike traditional bonds, Bonstake doesn’t promise extremely high APY. Instead, it offers a structured return model with up to 264% base APY. This model is sustainable and incentivizing, allowing users to increase their returns dynamically by inviting others to participate.

• High Potential Returns: Bonstake may not initially offer the highest APY, but its structure allows users to dynamically grow their earnings. By actively participating and referring others, users can rapidly grow their staked assets, potentially doubling their investment in a short time. The more users they bring, the higher their APY.

Simplified User Experience:

• Integrated Operations: Bonstake merges the bond and stake operations into one, simplifying the user process. Users can enjoy staking rewards while supporting the token price in a single action. This integrated approach is more intuitive and lowers the participation barrier compared to traditional bonds.

Creating a Sustainable Ecosystem:

• Inflation Control: The Bonstake mechanism allows Novai Finance to better control token supply, preventing unchecked inflation. This helps maintain the long-term value of the token, whereas traditional bonds risk unlimited token supply expansion.

In summary, the Bonstake model not only optimizes the user experience and enhances token demand and price support but also creates a more sustainable economic model, driving the long-term development of Novai Finance.