How to Buy BarnBridge (BOND)

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Contributor, Benzinga
Updated: December 22, 2021

Want to jump straight to the answer? You can buy BOND on Coinbase and Gemini.

BOND is the native token of the BarnBridge protocol. BarnBridge is a decentralized finance (DeFi) risk tokenization protocol whose white paper was drafted in the 2nd quarter of 2019, and the token was launched in Q4 2020. The aim of the protocol is to reduce the various risks associated with the DeFi markets such as market price risk, inflation risk and cash-flow volatility risk. The protocol could be described as a tool used to create tradable tokens that expose users to market volatility. 

By using Barnbridge, investors can choose what kind of risks they wish to take on. The protocol does this by segregating risks of the cryptocurrency markets into various tranches so investors can put their funds into different products and assets in accordance with their risk profile and appetite. The protocol offers its 3 products to achieve this:

  • SMART Yield – Launched March 2021
  • SMART Exposure – Launched June 2021
  • SMART Alpha Products – Launched July 2021

Essentially, BarnBridge is an open-source suite of decentralized applications (DApps) that can be used for managing risk in blockchain-based financial systems. Also, it is one of the only platforms exposing its users to fixed-income products through cryptocurrency markets.

What is BarnBridge (BOND)?

BOND runs on the Ethereum blockchain and thus is based on the ERC-20 compatibility standard. This entails that it can be stored on any cryptocurrency wallet that supports Ethereum, thus allowing easy access to the coin. It’s used for staking on the platform and in governance as well. 

BarnBridge is a unique project that enables its users to tokenize and leverage or hedge market risks depending on their investment goals. Its native token BOND is both its utility and governance token that enables voting and various other uses on the platform. BOND’s unique user proposition and the underlying BarnBridge token could lead to the token becoming more prominent in the near future — especially with the rapid expansion of the DeFi markets.

The token distribution mechanism of BOND is structured in a way to enable decentralization of the protocol to ensure the power doesn’t reside only in a few hands that dictate the governance of the network. As the minting function is disabled for the token, the total supply of BOND tokens that can be created is 10 million tokens. The current circulating supply of BOND is just over 5 million tokens. The distribution schedule is split over 100 weeks and started in October 2020. 

A total of 82,200 BOND tokens are distributed on a weekly basis. The distribution process will take about 2 to 3 years.

The community received 68% of the total supply of the 10 million tokens, the investors received 7.5%, the decentralized autonomous organization (DAO) treasury got 10% and advisors received 2%. The remaining 12.5% is reserved for the core team of the protocol. The 68% going out to the community is further distributed with the below allocation structure:

  • Yield farming, 8%
  • Uniswap LP rewards, ~20%
  • Staking rewards, 4.8%
  • Variable Compensation Pool incentives, 17.5%
  • Community reserve, 17.7%

The decision-making process in the protocol governance is done through a structure known as decentralized autonomous organization. This DAO is made using a series of smart contracts based on the Ethereum network that allows BOND holders to deposit their tokens in order to gain voting power for governance purposes. Each vote can support and execute up to 10 on-chain actions.

In an attempt to provide enough time for DAO participants to stake, vote and discuss proposals, the voting process is divided into 4 stages, each lasting 4 days as shown below:

  • Warm-up
  • Voting
  • Queued for execution
  • Grace period

Brief History of BOND

As the token only launched in late October 2020, it is still in the nascent stages of its lifecycle. However, within this time period, the token has been through several price fluctuations. While the coin debuted at $176.90, it currently is trading for less than 20$ — almost 90% off the all-time high of $185.93 it reached on Oct. 27 shortly after its debut. It reached its all-time low of $14.77 on Jan. 4, 2021, amid the height of the crypto bull run. Heading into 2022, most DeFi tokens are still underperforming the general market. With ETH2 on the horizon, however, there may be newfound interest in DeFi tokens after Ethereum becomes more scalable.

How to Buy BarnBridge (BOND)

To begin investing in BOND, you first need to choose a suitable cryptocurrency exchange for your needs and open an account there that you can use to trade in BOND and other cryptocurrency tokens. There are a few factors you might want to consider before choosing an exchange; some of them are listed below:

  • The range of cryptocurrencies offered by the exchange platform
  • The user interface (UI) of the platform and its ease of use
  • Whether the platform offers any support for traditional financial instruments like equities, bonds, and commodities that could enable you to track larger portions of your portfolio on 1 platform enabling a much more holistic view to support your investment decisions
  • Trading fees structures, account maintenance fees, and commissions charged by the platform
  • Security and authentication features like encryptions and 2-factor authentication (2FA)

  1. Open an online acccount.

    As BOND is not one of the most prominent cryptocurrency tokens in the market like Bitcoin (BTC) and Ethereum (ETH), so it's not available on all cryptocurrency exchanges. Below is the selected list of the cryptocurrency exchanges, both centralized exchanges (CEXs) and decentralized exchanges (DEXs), where you can purchase and trade BOND.

    The first step of adding BOND to your portfolio is opening an account in a cryptocurrency exchange. Based on the criteria mentioned above, you can choose the cryptocurrency exchange on which you would want to make the purchase. Binance, Gemini and Coinbase are the most prominent exchanges that offer trading support for BOND.

  2. Buy a wallet (optional).

    Ownership to cryptocurrencies means owning the private keys for your tokens. Like the saying in the crypto community goes, “Not your keys, not your coins.” Keeping that in mind, you might want to invest in a cryptocurrency wallet to store your keys in a secure manner. Broadly, there are two types of crypto wallets, hot wallets (also known as software wallets) and cold wallets (also known as hardware wallets).

  3. Make your purchase.

    Depending on your investment appetite, you can choose how many funds in fiat currency like USD, EUR, GBP or AUD you would like to invest. Based on this, the platform will give you the number of BOND tokens you would be allocated less the gas fees that exist on the Ethereum blockchain at the time. Before making the purchase on the platform, you need to choose which order type you would like to choose.

    An order type is an instruction that you can set on a brokerage or cryptocurrency trading platform that ensures your order is executed only if a certain set of prerequisites have been fulfilled. Broadly, there are 3 types of orders that are prevalent in the cryptocurrency markets or even the traditional financial markets in general. These types are explained below:

    Market order: This type or order executes for the asset at the market’s best available price to buy or sell the asset in question. Although, this order doesn’t guarantee a specific price at which your order will be executed. These types of orders are usually used by traders who need their trades executed immediately. The price quotation for this asset often includes the highest bid for sellers, the lowest buy or sell for buyers, and the last traded price that is not the current price, especially for assets with lesser liquidity.

    Limit order: This kind of order allows you to buy or sell the token with a restriction in place, based on the maximum price to pay when you are the buyer or the minimum price you would be willing to receive as a seller. In this instance, the execution of the order is never guaranteed. It is only appropriate if you perceive that you can buy at a lower price or sell at a higher price than the prevailing market quote.

    Stop order: This type of order is more of a safety mechanism. Using this order, you can buy or sell your token at the market price based on your prespecified stop price. Your order will be executed once the market price reaches the stop price. This type of order is appropriate for when you want to protect your gains on a token that you have already made gains on or invest into a rising asset with the belief that it will keep rising.

    Once you choose the type of order you want to place based on your trading requirements and risk appetite, you can simply allocate the funds you are willing to invest and place the order on your chosen cryptocurrency exchange. Depending on the type of order selected, your order may or may not get executed based on the conditions you provided in the order execution. When the order is executed, you’ll be able to see the tokens in your exchange’s wallet, which you can trade further or convert into fiat currencies depending on your investment requirements.

Cryptocurrency Exchanges for BOND Token

Here are the most widely used cryptocurrency exchange to invest in BOND tokens. These exchanges are U.S based, and these platforms are regarded as some of the most secure places to buy BOND today. Coinbase is a particularly good option, as the exchange pays its users in cryptocurrency for learning about blockchain technology. Simply make an account and start learning about crypto with Coinbase Learn.

Cryptocurrency Wallets for BOND Tokens

Trezor
Best For
  • Crypto enthusiasts
securely through Trezor's website

Best Hardware Wallet: Trezor

Trezor has two hardware wallet offerings, Trezor One and Trezor Model T. Trezor One is the cheapest crypto cold wallet available of the highest reputation. Model T is the more sophisticated model with a full-color touchscreen for ease of direct device use; it also offers the option of Micro SD storage. Trezor uses open-source software which hasn’t been hacked yet. Trezor One supports over 1,000 cryptocurrencies, while Trezor T provides support for even more cryptocurrencies, officially being the wallet that supports the most crypto assets.

Best Software Wallet: Coinbase Exchange Wallet

One of the best software wallets out there is one offered by the oldest and most trusted cryptocurrency exchange, Coinbase. The Coinbase wallet allows you to store all your crypto and NFTs in one place. You can even trade the supported 500 cryptocurrencies on DEXs and even earn interest. To use the wallet, it is not essential to have an account with the Coinbase exchange. Your crypto keys are protected with Secure Enclave, biometric authentication and optional cloud backups.

BZ

Consider This:

Barnbridge issues over 80,000 tokens on a weekly basis. Although there is a limit on the amount of BOND that can be minted, BOND will suffer from high inflation over the next couple years. If new users don’t adopt the platform, the token’s price will almost certainly depreciate.

Trade, Sell or Convert BOND

First, you need to decide if you want to sell your bond to cash in on your position or you want to trade it in for another cryptocurrency. The main difference between selling and trading the token would be that once you decide to sell the coins, you would receive fiat currencies in exchange while if you trade it, you will be purchasing another cryptocurrency of equal worth.

You can cash out or trade your BOND on the same exchange you purchased it from if you have stored the tokens on the software wallet of the exchange. If you have stored your tokens on a hardware wallet like Trezor, you can choose amongst the cryptocurrency exchanges that support this token and then either trade it for another altcoin or convert it into your local fiat currency which can then be transferred into your bank account.

Pros and Cons of BarnBridge (BOND)

ProsCons
Fixed-income products are often low-risk.Not risk-free, they are subject to inflation and the failure of governments, corporations and central banks.
Aggregation of fixed-income yields could increase the efficiency of the system.Low liquidity and yield from external integrated platforms could impact users of BarnBridge.
The growth of the protocol has been organic and not inflated artificially.BOND’s performance has been weak compared to its debut price.
BOND provides ease of access to liquidity mining.Staking BARN is not an option thus reducing the incentive for holding it.

Current Crypto Prices

Cryptocurrencies are volatile investments, and, unlike the stock market, the crypto markets never close. Because of this, it's a good idea to use a cryptocurrency portfolio tracker to manage your portfolio from wherever you may be. If you're interested in using a portfolio tracking mobile app, we recommend Crypto Pro –– it's totally free. For the most up to date cryptocurrency prices, check out our table below.

Is BOND a Good Investment?

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BarnBridge is a unique project that enables its users to tokenize and leverage or hedge market risks depending on their investment goals. Its native token BOND, both its utility and governance token, enables voting and various other uses on the platform. BOND’s unique user proposition and the underlying BarnBridge token could lead to the token to become more prominent in the near future — especially with the rapid expansion of the DeFi markets. However, the token suffers from a high inflation rate, and investors are looking toward other investments outside the DeFi space, namely in the metaverse and NFTs. While BOND offers a great opportunity for high returns, there is certainly a high amount of risk associated with investing in the protocol.

Frequently Asked Questions

Q
What is SMART Yield?
A

SMART Yield is one of the popular products of BarnBridge protocol. As a tool, SMART Yield offers BarnBridge users a fixed or leveraged yield on their stablecoin deposits using integrated lending markets like Compound and Aave. Users’ deposits are accumulated into the markets of these platforms, and BarnBridge allocates the yield based on the generated yield from the different risk profile subsets, namely Junior Pools and Senior Pools. The former has a higher risk profile compensated by levered variable rate rewards, and the latter has a lower risk profile resulting from the fixed-rate rewards. Each of these pools has assets like Senior Bonds and Junior tokens attached to them.

Considering historical performance, SMART Yield’s total value locked (TVL) has reached highs of more than $290 million, and there have not been security lapses, hacks or vulnerabilities since the product launch. BarnBridge also has been audited for security by industry-leading firms like OpenZeppelin and Hacken CyberSecurity Services.

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