Crypto Bonds: The New Non-Fungible Token Based on SYNC Network

Project Reviews / 16.10.2020

Focus on the DeFi space is shifting immensely following the invention of numerous digital assets and other crypto-related projects. Both new and expert traders come onboard the DeFi community with high hopes of earning a good income. 

However, most of these protocols are usually fungible. In simple terms, fungible assets can be exchanged with another user as long as both assets are similar. Crypto Bonds, on the other hand, are non-fungible tokens that run on SYNC Network. Before looking into the functionalities of Crypto Bonds, we have to understand what non-fungible assets are to get the bigger picture.

A Brief Description of Non-Fungible Tokens

Unlike fungible assets, non-fungible assets (NFT) eliminate the exchange of any token or cryptocurrency. NFTs mostly contain some information indicated on their smart contracts, making them very different from each other. Therefore, no single token can represent the NFT. Among the identifiable information contained in the smart contracts include stuff like secure file links and even the owner’s identity. 

Revealing identities may seem far-fetched, but in the end, it plays a significant role in the proof of ownership. The gaming industry is an excellent example of an area that utilizes NFT. Items available on the gaming site represent non-fungible tokens, so the rightful token owner must purchase the items. Other use cases for NFTs may evolve around issuing documents such as software licenses or birth certificates. 

The Birth of Crypto Bonds on SYNC Network

The dawn of a new asset is here with SYNC Network launching its own Crypto Bond. SYNC Network requires users to add 50% SYNC Tokens to every Crypto Bond. This measure ensures the maintenance of the tokens’ status as well as improving their liquidity pools. SYNC is set to be paired with over 150 different liquidity pairs. SYNC’s bonding to other crypto assets strengthens SYNC while supporting its assets bonded to via liquidity pools. Since Crypto Bonds fall under the NFT bracket, anyone can develop a bond for themselves. There’s no need for a middle man. Generally, SYNC Network empowers the crypto space’s growth through blockchain adoption, safeguarding users’ wallets, and integrating research markets.

Features of Crypto Bonds

A unique ERC-721 contract drives Crypto Bonds. So when formulating a new NFT bond, one has to seal an adequate amount of SYNC tokens and liquidity tokens from Uniswap. The lock duration entirely depends on the decision of an investor. Crypto Bond durations range from 90 days to 3 years. Choose between quarterly dividend payouts or earn higher interest with a term Crypto Bond. Dividends are paid out in the form of SYNC tokens.

Token distribution of SYNC is divided into various sections whereby 48.7% goes to the public users, 25% is meant to sustain the Crypto Bond Market, partnership and marketing funds consume 16%, the developing team gets 7%. Private sale amounts to 2.5% of the total tokens. That being said, Crypto Bonds enable a couple of distinguishing features, including:

Improves Longevity

SYNC Tokens are scraped off the cumulative supply after the creation of a Crypto Bond. This action alone ensures SYNC Tokens remain scarce and highly valid to the crypto market. After that, a re-minting procedure of the SYNC Token and interests gained starts once the Crypto Bond maturity lapses.

Adjustable Interest

Crypto Bond’s interest rates keep changing daily to keep up with the demand for SYNC Tokens’ current supply.

Effective Trading

Users can trade their Crypto Bonds on the automated bond market maker or through auctions. Utilizing bot technology for trading purposes saves an investor’s most important resources, time, and funds.

Easiness of Transfer

The SYNC network facilitates an easy mechanism of sending Crypto Bonds to other wallets

Liquidity Maintenance

Crypto Bonds boost the liquidity structures of every pool that associates with it. Liquidity withdrawal is possible only after the maturity period comes to an end. 

Why You Should Choose SYNC Network

SYNC Network is undoubtedly one of the modernized DeFi projects in the market today. It increases the liquidity power of specific pools through the Crypto Bonds. It also deploys a strategy meant to elevate the SYNC token in conjunction with their respective pools. 

SYNC Network also allows users to design the Crypto Bonds according to their individual preferences. The network’s automated bond market maker executes the bond’s immediate sale on behalf of a user. 

Assets with higher chances of gaining more interests are traded together, thanks to the Crypto Bond marketplace. Whether or not you decide to trade on a different market is also your choice; however, it won’t interfere with an asset’s price linked with Crypto Bonds.

Conclusion

SYNC Network seemingly carries the massive potential to serve its users comfortably. It isn’t possible to trade all day even though the crypto market operates full time. Nonetheless, merging Crypto Bonds with DeFi allows for a robust secondary market that aims to support the crypto market as a whole. The direct effect of crypto bonds being created is larger, stronger, and more liquid markets. 

Moreover, it will be difficult for SYNC tokens to lose its value considering the effective strategies to ensure its stability. The network also enables REN protocol procedures, which facilitate the transfer of assets across other chains. SYNC Network is consistent with its plans, which is why, moving forward, it plans to establish a decentralized Crypto Bond trading platform. 

Adam is an outgoing young lad who likes adventures and discovering new things. Despite his boring life, he loves writing about cryptocurrencies and exploring what blockchain technology can do for the coming digital world where all adventures will be virtual.