An IBO or Initial Bond Offering enables any project to issue a bond to borrow delegation, stake wherever they please, and receive all staking rewards from the delegation they borrow. We envision the IBO as a tool that allows projects to run Initial Stakepool Offerings (ISOs) and raise funds without operating and saturating their own stake pools.
A project would issue bonds to borrow a delegation, stake in any pool, and receive all associated ADA staking rewards, BUT offer lenders 0% interest in ADA or stablecoins. In return for borrowing delegation they would either 1) airdrop their governance tokens to bond buyers/lenders at a later date 2) embed their tokens in the bond for redemption after bond term expires
A project that decides to operate their own stake pools for an ISO would benefit from issuing an IBO Bond to borrow ADA to use as pledge, thereby increasing the ROA in their pool(s).