Dilemmas Faced by DeFi 1.0

LP liquidity mining and POW mining have the same shortcomings: mining output is a permanent expenditure with no ongoing benefits. LP liquidity mining is equivalent to leasing. In the initial stage, the rental fee is high (large output * high currency price ), and the protocol can quickly obtain liquidity. However, as the rental fee decreases (lower output * lower currency price), the protocol lease liquidity gets more complicated and more complex, and then the protocol temporarily has less and less liquidity. Correct thinking should always guide and accumulate long-term controllable value rather than paying high interest for hired capital because high interest can never last.

Bonds change everything; through the bond mechanism, the protocol itself can exchange its native tokens in exchange for

assets. Instead of leasing liquidity to a third party, it purchases liquidity directly. Once the bond is established, the agreement

Just own these assets and allocate a new Token supply.