🔥Phoenix Bonds

A novel bonding game built on LiNEAR protocol

What is Phoenix Bonds?

Phoenix Bonds is a principal-protected bonding platform that help protocols with liquidity-bootstrapping and provide perpetually-boosted yield to users. Phoenix Bonds can work with all yield bearing assets. The first version will be launched for $LiNEAR, the staking derivative token of LiNEAR Protocol.

How does LiNEAR Phoenix Bonds work?

Core mechanism


Users bond $NEAR, which goes into the Pending Bucket, and accumulates balance of $pNEAR over time. All $NEAR in the Pending Bucket will be deposited into LiNEAR protocol to generate staking rewards.

A=tt+acap(1c)A= \frac{t}{t+a}*cap*(1-c)

A: the amount of claimable $pNEAR

t: time lapse after bonding

a: see Alpha controller

cap: upper limit of $pNEAR amount one can receive,cap=Bonded amount / Redemption price

c: commission fee, c=3%

If you are a $LiNEAR holder and want to bond $NEAR without unstaking, you could choose to bond by depositing $LiNEAR. Please note that principal protection of Phoenix Bonds is defined in terms of value in $NEAR. This means you may receive less $LiNEAR than what you bonded when cancelling the bond, because $LiNEAR price always grows every epoch.


Users can withdraw the bonded amount of $NEAR anytime before they choose to claim $pNEAR.


Users can claim the accumulated $pNEAR anytime after bonding. One bond can only be claimed once. After claiming, users get the accumulated $pNEAR, while their bonded $NEAR (now staked as $LiNEAR) enters the Reserve Bucket and the permanent bucket.

A 3% commission is collected upon claim on every bond, which will be mainly used to incentivize $pNEAR/$NEAR liquidity.


Users can always redeem $pNEAR for $NEAR from the Reserve Bucket. The initial redemption price before the first claim is set at 1.0

Redemption price = Total $NEAR in the Reserve / $pNEAR supply

Redemption amount of $NEAR = Redemption price * Redeemd amount of $pNEAR


Pending Bucket

All bonded $NEAR is held by Pending Bucket until claimed. All staking rewards of $NEAR goes to Reserve Bucket. When users claim $pNEAR, corresponding $NEAR (staked as $LiNEAR) is transferred from Pending Bucket to Reserve Bucket and Permanent Bucket, according to the following formulas:

  • Commission transferred to the treasury = Bonded $NEAR amount * commission fee

  • $NEAR transferred to Reserve Bucket = Accumulated $pNEAR * Redemption price

  • $NEAR transferred to Permanent Bucket = Bonded $NEAR amount - (Commission transferred to the treasury + $NEAR transferred to Reserve Bucket)

Reserve Bucket

Staking rewards from all three buckets go to Reserve Bucket, creating amplified yield for $pNEAR holders.

Permanent Bucket

Protocol-controlled-value (PCV) of Phoenix Bonds. It guarantees boosted yields to $pNEAR even when if Pending Bucket becomes empty.

Alpha controller

The alpha parameter of the accrual function variable implements a feedback controller which adjusts the parameter in one direction.

T_a =(Bond1_amount * t_1 + Bond2_amount * t_2 +...+ BondN_amount * t_N) / Total bonded amount

T_a: the size weighted average age of pending bonds

N: the amount of pending bonds

t_N: time lapse after bonding of bondN

T_target: target average age, T_target=15 days

When T_a <= T_target, alpha remains unchanged

When T_a > T_target, reducing by a 1% for each day

Alpha initial value:4.4 days

Alpha lower limit:0.1 days

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