Intro LUSD Chicken Bonds Testnet Version
September 29, 2022
We want to prepare our users for the LUSD Chicken Bonds launch on October 4th, by giving everyone access to the test-game version.
This instance will be similar to the real version, just sped up to obtain results faster - 1 day in the game will be like 24 days in the real life version (so 1h is 1 day in the game).
The test-net version will be close the final one with a couple exceptions:
- The liquidity management will be done directly on Curve and not a part of the frontend
- The ‘Chad Chicken’ and ‘Runaway Chicken’ NFT’s will be added (test game only displays eggs)
- Parameters of the Chicken Bonds system might change
Also, the game dynamics will change once real money is involved so keep that in mind.
We hope you’ll enjoy the game and come out with a fine-tuned strategy for mainnet next week!
Your Goal & Strategies
Try to find a winning strategy that outperforms your peers and maximizes your yield amplification.
You get bLUSD which gives you access to an amplified yield compared to depositing your funds directly into the Stability Pool
Why is bLUSD valuable?
It can be redeemed against the Reserve which holds most of the bonded LUSD. It receives all the yield from users bonding as well the entire POL
When should you Chicken In?
Once you have reached the break even point - meaning your accrued bLUSD is worth more (at current market prices) than the LUSD which is bonding. Make sure you are still profitable after swapping and then rebond to compound your amplified yield.
Are there other strategies than bonding?
Trade bLUSD: Buy it when it’s close to the redemption price, and sell when there is a high premium
Be an LP: Provide liquidity in the LUSD/bLUSD and maximize profits by providing the asset that is in demand to the pool (Curve rewards you for that)
Be an NFT collector: In our test game the NFTs will be minted randomly - without taking into account on-chain metrics to increase your chances for rare NFTs ;-(
Get some Goerli ETH: you can obtain it from this faucet.
- Head over to: https://devui.liquity.org/next/#/.
- Change your network to Goerli and connect your wallet.
You will be presented with a familiar Liquity frontend but with 2 changes - a new panel and a button.
- Go to the ‘Bonds New’ tab, and claim your free 10k LUSD with which you will play the game
Once you have it, you are ready for the game.
The first action is to create a bond, you can:
- Create one big bond
- Create several small ones
- Leave some LUSD on the side to LP early (earn trading fees)
- Leave some LUSD to arb and/or trade
- Some other strategy…
The minimum amount to create a bond is 100 LUSD.
After clicking on ‘Create bond” you should enter the desired amount and can also use a slider to simulate the return rate based on the bLUSD market price.
Based on the bond’s status it will appear under pending, claimed or canceled.
As your bLUSD accrues you will have to decide if you want to:
- Wait until in profit, claim, sell for LUSD and rebond with a higher principal
- Claim before break even and be an early LP benefiting from trading fees
- Keep LUSD and bLUSD in your wallet, monitor the price to arb/trade and benefit from price fluctuations
When you cancel the bond you get all your LUSD back, in this case 7,777
But at the same time you forfeit all your accrued bLUSD including all the yield
When you claim, you forgo all the originally invested LUSD
But receive all the accrued bLUSD in return
Buying/selling is like on any DEX but we have dedicated buttons for each
You can just enter the sum and confirm.
Be mindful of the slippage and changing swap rate offering trade and arb opportunities.
Add Liquidity (only available on Testnet)
Click ‘Add liquidity’ , and enter the desired sum - you will get LP tokens in return and start earning trade fees.
All of these actions can be done via the buttons at the top
Browse the Egg NFTs on OpenSea ;-)
See testnet Egg NFTs here.
And here are some previews of the Chicken In and Chicken Out NFT visuals: