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When we talk about Bondly we refer to a project aimed at being the next generation of payment infrastructure designed for the sale of digital assets on the Polkadot network.
Bondly’s goal is to make DeFi (Decentralized Finance) more accessible to users through payments deposited in decentralized collateral. It is basically a decentralized exchange protocol.
Among the main characteristics of the project are reliability, transparency and portability. Its creation was based on the idea of turning a user into a marketplace.
History of Bondly
This project was launched in Polkadot in September 2020. Brandon Smith founded Bondly Finance. He also holds the position of CEO currently at the company. Brandon Smith had a background prior to creating Bondly as a managing partner at Shuttle Capital and vice president at Shieldpay. He also held the position of director of digital strategy and risk at PricewaterhouseCoopers and also held the position of analytics team leader at General Electric.
How does Bondly work?
Bondly currently offers a system of fully decentralized products including BondSwap or BSWAP. These decentralized products allow any user to make digital peer-to-peer payments. This project can also communicate via any messaging service or social networking platform.
BondSwap is a core Bondly product that allows users to send cryptocurrencies from one chain to another via atomic exchange. In addition, BondSwap offers over-the-counter (OTC) trustless wallet-to-wallet trades which it executes by signing a smart contract.
In addition, it supports “portable” smart links that can be sent via messaging applications or social networks. BondSwap supports all ERC-20 tokens.
Another of BondSwap’s great contributions is to allow users to sell large amounts of tokens with low liquidity without the risk of slippage. We can buy assets with both credit and debit cards through an external partner.
Another of Bondly’s products is Bond Protect or BPROTECT. This is a decentralized escrow and buyer protection system for clients in crypto-friendly markets. This system was designed to target the electronic trading market. BPROTECT allows selling assets that users do not yet own through OTC to bet collateral to the Bondly network.
As for these bets, transactions over-the-counter involve minimally two parties and generally require a high level of trust between the participants in the bet. The seller might wager a guarantee and ensure that the buyer will receive the asset on an exact date or in a certain condition. In the event of a breach of the agreement, the collateral is forfeited and passed on to the buyer.
Another feature of the betting is that the sellers themselves can side bet and get rewards for placing their bet. If the vendor does not respect the terms of the sale a BOND guarantee will be provided to the buyers as compensation. All sales made are recorded on the blockchain ensuring transparency.
Bondly has developed its own decentralized exchange called Bond DEX. This exchange proportionately includes the reward token to liquidity providers in addition to the DEX fee.
Bond DEX allows its users to exchange native Polkadot assets on Ethereum with USDC and provides recommendations on the most economical bridging transaction paths.
Liquidity providers bundle transaction fees together with rewards while the pricing engine compares cross-blockchain exchange options allowing to know which is more affordable. Validation takes place within the Web3 browser or in the Polkadot.js-based Native Wallet.
In a few words, Bond Dex enables trading with Polkadot assets on Ethereum with USDC, allows to get the best recommendations on the cheapest bridging transaction paths and also allows its users to create their own token pairs.