FAQ
FAQ
General
Q: How is Bondify different from Pendle? A: While Pendle provides excellent YT trading tools, Bondify provides a complete infrastructure solution. Bondify connects your RWA to a shared liquidity network, offers capital-efficient YT generation, and includes institutional-grade risk management. Projects integrate once and access the entire ecosystem.
Q: Why not just stake directly in RWA projects? A: SLF provides diversified exposure across multiple vetted RWAs without single-asset concentration risk. You get professional risk management, instant liquidity, and USDC-denominated returns without individual project lockup periods.
Q: How does SLB maintain its peg? A: The Standing Lending Facility provides arbitrage opportunities when SLB deviates from $1. Additionally, stability fees adjust dynamically - when SLB trades below peg, borrowing becomes extremely expensive, reducing sell pressure.
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 SLB 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 SLB liquidity on Staple Exchange on end of 2025.
Last updated
Was this helpful?