⚡Bond To Earn
Earn ALX & ETHx Rewards, Ether.fi & EigenLayer Points, and More!
Whether you're aiming to maximise ETHx yields, acquire ALX, earn points, or explore flexible ALX strategies, Bond To Earn offers a dynamic and multi-faceted approach to earning. Both bond types offer ETHx rewards backed by eETH from Ether.fi, but with unique twists that set them apart.
ETH bonds create a dual earning opportunity with ETHx rewards and entry into the ALX daily auction. This means bonding ETH becomes one of the exclusive ways to acquire ALX, alongside direct purchases from the liquidity pool.
ALX bonds, while not granting auction entry, offers a flexible strategy for ALX holders. You can leverage your ALX holdings to earn ETHx and potentially reclaim your full bonded ALX amount upon maturity if you don't snipe any ETHx rewards.
For ETH bondholders, your earning potential extends further. You'll accumulate Ether.fi and EigenLayer points based on your trigger power, which is influenced by your bond's earning power and the timing of your bond purchase within the fortnightly cycle. Furthermore, if you have the highest trigger power in a cycle, you can activate the ALX Buyback. This gives you the opportunity to earn additional ETH!
⚡️ Types of Bonds
ETH Bonds offer a multi-faceted earning strategy, balancing ETHx accumulation, ALX acquisition, and point earning opportunities:
Earn up to 200% in ETHx rewards, fully backed by eETH from Ether.fi
Participate in the daily ALX auction for a chance to acquire ALX tokens
Accumulate Ether.fi and EigenLayer points based on your trigger power
Potentially earn additional ETH through the trigger incentive mechanism
You can purchase an ETH bond using ETH, eETH, or ETHx, with the potential to earn up to 200% in ETHx rewards. The bond duration is flexible, ranging from 30 to 365 days, with longer terms increasing both your earning power and maximum payout potential. Your earning power will grow as more bonds are purchased, through the distribution of bonus power. This unique feature will accelerate your progress towards your maximum payout.
When you purchase an ETH Bond, your ETH is converted and held in eETH. The protocol then mints an equivalent amount of ETHx, allocating it across various channels:
70% is distributed as rewards among ETH bondholders.
5% is distributed as rewards among ALX liquid stakers.
5% is distributed as rewards among ETH liquid stakers.
5% is allocated and routed towards the ALX Buyback & Earn.
15% is split between the Buyback & Earn Incentive (10%) and the Team Address (5%).
Your "trigger power," determined by your earning power and bond timing, influences your share of valuable Ether.fi and EigenLayer points. The bondholder with the highest trigger power each day earns the privilege of initiating the ALX Buyback, providing an opportunity for additional ETH earnings.
Additionally, purchasing an ETH Bond also grants you entry into the daily ALX auction. However, there's an important consideration: ALX rewards can only be claimed at the end of your bond's maturity. As you accumulate ETHx rewards, your potential ALX rewards decrease proportionally. This creates a unique dynamic where reaching your ETHx maximum payout before maturity will result in forfeiting your ALX rewards.
ALX bonds offer a flexible strategy for ALX holders, allowing potential reclamation of bonded ALX if no ETHx rewards are sniped. This burn-and-remint mechanism provides a unique approach to leveraging ALX holdings:
Receive an ETHx maximum payout of up to 200%
Potential to have your ALX fully reminted at maturity
Opportunity to snipe ETHx rewards from ETH bondholders and stakers
You can purchase an ALX bond using ALX, which is immediately burned. Unlike ETH bonds, purchasing an ALX bond does not grant you entry into the ALX daily auction or provide earning power. However, you have the opportunity to have the full amount of ALX you bonded reminted upon maturity, provided you have not sniped any ETHx rewards.
Upon bonding, you will receive an ETHx maximum payout of up to 200%. Bonding for a longer duration, between 30 and 365 days, offers a higher ETHx maximum payout. To reach your ETHx maximum payout, you will need to snipe rewards. Note that as you snipe, it will reduce the amount of ALX that can be reminted upon maturity.
⚡️ Bonding Process
⚡️ Earning Power Bonus
The bonus mechanism activates when the second ETH bond is created. From that point onward, each new ETH bond generates a bonus equal to its earning power. This bonus is distributed among all existing ETH bondholders in proportion to their earning power, excluding the new bondholder. As more ETH bonds are purchased, the collective earning power of all ETH bondholders increases, allowing them to reach their maximum ETHx payout more quickly.
Therefore, the protocol rewards early participants and encourages continued participation by increasing each bond's earning power and accelerating progress toward the ETHx maximum payout.
⚡️ ETHx Claim Process
When it comes to claiming your ETHx rewards, an additional 25% on top of the claimed rewards will be distributed by the protocol, depending on who is doing the claiming. Let’s break it down!
ETHx rewards were Sniped
When someone else snipes your ETHx rewards, 20% of the claim distribution is given to the ALX bondholder (sniper) as a reward for their action. Additionally, 5% of the claim distribution is allocated to the ALX Buyback & Burn.
ETHx rewards were Self-Claimed
When you self-claim your ETHx rewards, 25% of the claim distribution is allocated to the ALX Buyback & Burn.
⚡️ Bonding FAQs
What's The Cost?
The base cost is 0.01 ETH / eETH / ETHx per bond. There’s no need to worry about price fluctuations due to the 1:1 ratio between ETH, eETH, and ETHx.
What Do I Earn?
As an ETH bondholder, your earning power is determined by the amount of ETH you bond and the maturity period of your bond, ranging from 30 to 365 days. The longer the maturity period, the greater your earning power and the higher the maximum ETHx payout.
By purchasing a bond, you gain entry into the ALX daily auction and become eligible for an ETHx maximum payout. You earn ETHx rewards as more ETH bonds are purchased. Your maximum payout is capped at 200% when bonding for the maximum duration. As you accumulate more ETHx rewards, your potential ALX payout from the auction decreases.
This occurs because each new bond not only enhances your ability to earn rewards faster due to earning power bonuses but also impacts your eligibility for ALX. Essentially, the more ETHx rewards you earn, the less ALX you can claim at the maturity of your bond.
How Much Do I Earn?
When you purchase a bond, you receive earning power based on the amount of eETH acquired through your bond purchase. This earning power determines your share of the ETHx rewards from ETH bond purchases. If you maintain the bond for a full year (365 days), you have the potential to earn up to twice the amount of your initial purchase in ETHx rewards.
If you do not reach your maximum payout during this period, you can unbond the ALX earned during the auction after the bond matures. The amount of ALX you can unbond is limited to the proportion of your remaining ETHx maximum payout minus the initial ETH bond purchase value.
For example, if you bonded 1 ETH for 365 days with a maximum payout of 2 ETHx and you have only earned 1 ETHx, you will be able to unbond 50% of the ALX. However, if you earned the full 2 ETHx, you cannot unbond into ALX as you have reached your ETHx maximum payout.
Can I Reactivate My Bonds?
Yes, you can reactivate your ETH bond once it reaches its maximum payout to preserve your earning power. To do this, you'll need to pay the previous maximum payout. Reactivating your bond effectively doubles your initial maximum payout, allowing you to earn additional ETHx rewards. It’s important to note that when you reactivate your bond, 100% of your new earning power is distributed proportionally among other active ETH bondholders as part of the earning power bonus.
Do I Earn Points from Ether.fi and EigenLayer?
Yes, the more ETH you bond, and the earlier you bond in each fortnightly cycle, the more points you earn from Ether.fi and EigenLayer. The amount of points you earn is based on your trigger power during the cycle—the greater your trigger power, the larger the share of points you can earn. These points are based on the total eETH held by the protocol.
Do I Get Penalised If I Don't Claim My ETHx Rewards?
Yes, there are penalties if you don't claim your ETHx rewards after reaching your bonding maturity and maximum payout, and it has been more than 7 days since your bond matured. For example, if your bond period has ended, you have reached your ETHx maximum payout, and it has been over 7 days since your bond expired, any unclaimed ETHx rewards can be penalised when sniped. If sniped, the penalties will distribute 50% of the unclaimed ETHx rewards to the sniper and 50% to the ETHx Reserve.
What's The Cost?
The base cost is the equivalent of 0.01 ETH in ALX per bond.
What Do I Earn?
As an ALX bondholder, your ETHx maximum payout is determined by the amount of ALX you bond and the maturity period, ranging from 30 to 365 days. The longer the maturity period, the greater your maximum ETHx payout. You can purchase an ALX bond using ALX, which is immediately burned. To earn ETHx rewards, you'll need to snipe and help claim rewards on behalf of other users.
Unlike ETH bonds, purchasing an ALX bond does not grant you entry into the ALX daily auction or provide earning power. However, you have the opportunity to have the full amount of ALX you bonded reminted upon maturity, provided you have not sniped any ETHx rewards.
How Much Do I Earn?
Upon bonding, you can receive an ETHx maximum payout of up to 200%. Longer bonding durations offer a higher ETHx maximum payout. To achieve your ETHx maximum payout, you'll need to snipe rewards from ETH bondholders and both ALX and ETH stakers. However, sniping rewards will reduce the amount of ALX that can be reminted upon maturity.
For example, if you bond 1000 ALX for 365 days with a maximum payout of 2 ETHx and snipe 1 ETHx, you will be able to unbond 50% of the ALX once the bond matures. If you snipe the full 2 ETHx, you cannot unbond into ALX, as you will have reached your ETHx maximum payout.
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