Optim Finance

ISO Bonds

What are ISO Bonds?

ISO (Initial Stake Offering) Bonds are intended as a tool to enable anyone who wishes to leverage their participation in an ISO to borrow ADA delegation to do so. Anyone can borrow ADA to stake to an ISO pool and receive associated governance tokens from a project for their participation.

How do ISO Bonds work?

Borrowers can issue bonds offering any terms for a lender’s ADA staking rights. Many bond parameters can be adjusted and offered to lenders. Some examples include: interest rate, maximum bond duration, initial interest paid into the bond (guaranteed t0 lender), and minimum interest buffer (minimum amount of incremental interest that must be paid into/ kept in the bond at all times).

Last modified 1yr ago