FAQ

FAQ

General

Q: Why do we need RWA yields instead of DeFi yields?

A: Traditional lending offers one-size-fits-all risk-return profiles, failing different investor needs. Bondify's structured products serve three distinct profiles: conservative SLF providers want stable protected yields with first-loss buffers, sophisticated Loopers want leveraged returns accepting first-loss risk, and speculators want extreme leverage with capped downside. One quality RWA now serves multiple risk appetites with deeper liquidity through risk tranching - impossible with simple lending protocols.

Q: Why improve RWA utility in DeFi instead of just holding RWAs directly?

A: The real opportunity isn't just idle RWA assets - it's creating structured capital efficiency that serves multiple risk appetites simultaneously:

Foundation: High-quality RWAs with defined duration and quantifiable yields enable accurate risk modeling for tranching.

Market Segmentation: Three tranches attract different capital pools - conservative (SLF), leveraged (Looper), speculative (YT) - multiplying total addressable market.

Capital Structure Benefits: Junior Tranche first-loss capital protects Senior Tranche, enabling lower-risk investors to access RWA yields with institutional-grade protection.

Growth Loop: Quality cleared assets attract diverse tranches → deep SLF liquidity enables higher leverage → more strategies attract more RWA projects → network effects strengthen entire ecosystem.

Result: Structured products create organic capital efficiency where each tranche strengthens the others, driving self-sustaining growth beyond simple tokenization.

Q: How does Bondify solve RWA liquidity fragmentation?

A: Traditional approach requires each RWA project to bootstrap individual liquidity pools, leading to:

• Massive capital requirements for deep liquidity per asset

• Isolated asset ecosystems with no cross-collateral benefits

• No structured products - just single-layer lending

• Difficulty serving different risk appetites

Bondify's CCR clearing enables shared infrastructure. Projects access shared SLF pools instead of bootstrapping isolated liquidity for each asset, significantly reducing capital requirements while CCR standardization creates network effects where every new cleared asset strengthens the entire system's liquidity depth.

Q: Why not just use existing lending protocols for RWA leverage?

A: Generic lending protocols like Aave or Morpho weren't designed for RWA characteristics:

• No Risk Tranching: Single risk layer fails to serve conservative capital wanting protection or speculators wanting extreme leverage

• Oracle & Liquidity Gaps: Most protocols lack reliable RWA oracles that can reflect true unstaking costs and critical price deviations; instead they rely on volatile market prices, triggering premature liquidations during temporary price swings

• Market-Rate Inefficiency: Interest rates set by general market supply/demand rather than optimized allocation based on each RWA's demand

• Slippage Costs: Every leverage loop requires DEX trades with significant price impact

• Complex Manual Operations: Users must manage multi-step processes across multiple protocols

• Limited RWA Support: Most protocols don't accept RWA collateral due to liquidity concerns and lack of reliable oracles

Bondify's specialized infrastructure eliminates these friction points through dedicated capital pools, zero-slippage execution, and automated strategy management.

Q: How is Bondify different from Pendle?

A: Bondify offers fundamental structural advantages:

• Vertical vs Horizontal Split: Pendle separates PT/YT horizontally (principal vs yield). Bondify creates vertical risk tranching (Senior/Junior/Yield) with first-loss capital protecting senior positions - true structured product vs simple yield stripping.

• Additional Liquidity from Loopers: Bondify's YT strategies benefit from existing Looper positions willing to sell their future yield rights at attractive rates to lock in profits. YT buyers access this additional supply beyond traditional PT buyers, while no borrow caps on YT positions enable unlimited scaling - creating deeper liquidity that Pendle's isolated PT/YT markets cannot match.

Q: Why not just stake directly in RWA projects?

A: SLF offers superior risk-return as Senior Tranche vs direct staking:

• First-Loss Protection: Junior Tranche (Loopers) provides equity buffer absorbing initial losses before affecting your capital

• Predictable & Sustainable Yields: Earn stable returns from leverage demand across diversified strategies, with structural protection superior to unstructured direct exposure

• Diversification: Exposure to multiple CCR-cleared RWA assets vs single-asset concentration risk

• Professional Clearing: Benefit from four-dimension risk assessment ensuring only quality assets enter system

• Instant Liquidity: USDC redemption from liquidity reserves vs extended RWA unstaking periods

SLF essentially functions as a protected Senior Tranche in a professionally-managed RWA structured product with DeFi-native liquidity.

Q: How does CCR maintain shared liquidity?

A: The hub-and-spoke model enables shared liquidity through standardization. All CCR-cleared RWAs connect to the same SLF pool rather than requiring isolated pairs. When combined with Staple DEX's time-sharing liquidity design, this creates deep network effects where each new cleared asset strengthens the entire system's borrowing capacity and execution quality.

Technical

Q: What assets can be used as collateral? A: Currently accepted assets include institutional-grade RWAs with proven track records, regulatory compliance, and adequate liquidity infrastructure. Each asset undergoes comprehensive risk assessment before integration.

Q: How are liquidations handled? A: Bondify uses a tiered liquidation system. Standard Market Liquidations: Public CBR positions with CCR debt can be liquidated by anyone when LTV thresholds are exceeded. Liquidators receive bonuses and the market handles price discovery.

Specialized Internal Management: YT/Looper positions require sophisticated unwinding due to their complex leverage structures and fixed maturities, so authorized liquidators handle these positions to optimize recovery value.

Treasury Insurance Backstop: A protocol treasury serves as insurance to avoid SLF stakers from suffering principal losses from liquidation events. This backstop protects SLF depositors by absorbing any shortfalls, maintaining the safety of the liquidity provision system.

Additional Safeguards: The system includes early warning mechanisms and partial liquidation options to help users avoid full liquidations, prioritizing position health maintenance over forced closures.

Q: What chains does Bondify support? A: Launching on Ethereum in November 2025, with Pharos, Plasma, Plume and more following in Q4 2025. Cross-chain CCR liquidity on Staple Exchange on end of 2025.