Mint Lendr (1, 1)
What is minting and how to mint.
Last updated
What is minting and how to mint.
Last updated
Minting is the secondary value accrual strategy of Lendr. It allows Lendr to acquire its own liquidity and other reserve assets such as LUSD by selling Lendr at a discount in exchange for these assets. The protocol quotes the minter with terms such as the mint price, the amount of Lendr tokens entitled to the minter, and the vesting term. The bonder can claim some of the rewards (Lendr tokens) as they vest, and at the end of the vesting term, the full amount will be claimable.
Minting is an active, short-term strategy. The price discovery mechanism of the secondary bond market renders bond discounts more or less unpredictable. Therefore minting is considered a more active investment strategy that has to be monitored constantly in order to be more profitable as compared to staking.
Minting allows Lendr to accumulate its own liquidity. We call our own liquidity POL. More POL ensures there is always locked exit liquidity in our trading pools to facilitate market operations and protect token holders. Since Lendr becomes its own market, on top of additional certainty for Lendr investors, the protocol accrues more and more revenue from LP rewards bolstering our treasury.
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Mints allow users to buy Lendr from the protocol at a discount by trading it with: One Liquidity (LP tokens) or two other assets. The former is called liquidity mints and the latter reserve mints.
Mints take roughly 5 days to vest, and Lendr tokens are vested linearly to the user over that period. Liquidity mints help the protocol to accumulate and lock liquidity, while reserve mints allow the protocol to grow its treasury, and thus its RFV faster.
