Ankr has introduced the Avalanche Bond (aAVAXb) for those who missed it, an ERC-20 token-based bond that follows the ETH2 Internet Bonds.
Anyone possessing AVAX tokens on the Avalanche network may use StakeFi to stake their tokens and get the AVAX Internet Bond (aAVAXb).
Avalanche AVAX staking mechanism
The current staking reward rate for Avalanche is 5.11 percent. Initially, Ankr will operate two validator nodes with a 1-month unlock time, and a 2-week delayed beginning point to ensure that customers wishing to redeem their aAVAXb into AVAX 1:1 every two weeks before starting a new 1-month staking period would be able to do so.
Users of StakeFi may stake AVAX in Ankr-hosted Avalanche validator nodes, which StakeFi will stake on their behalf. The minimum delegator cost for Avalanche staking is 2 percent, which is what Ankr will charge as a service fee on the staking payouts.
Avalanche Bond Launchpad functionalities during the initial phase
For example, Avalanche bonds (aETHc and aETHb) will provide liquidity for stakers and link staking rewards to DeFi, just as aETHc and aETHb do.
Avalanche staking rewards will be given out every day in aAVAXb through positive rebased, just like they are in aETHb. In other words, the aAVAXb balances of all holders will rise daily. AAVAXb rewards will be given out the same way as aETHb. Rebase will be used to do this.
DeFi liquidity on the Ethereum network and Binance Smart Chain allows DEX users to invest in aAVAXb instantly.
In the last few days, the Avalanche (AVAX) coin has only been available on the Binance Smart Chain DEXs. The AVAX liquidity is still very low. Ankr anticipates a spike in Binance Smart Chain AVAX token liquidity in the weeks after the aAVAXb launch.
AVAXb can now be traded for AVAX on the StakeFi Internet Bond launchpad, where you can buy and sell bonds. As long as you’re on the launchpad, you can change aAVAXb and AVAX for up to 14 days. Staking incentives will not be given for a period longer than 14 days after the end of the redemption period.
Decentralized Exchange (DEX) Liquidity
Ankr is already in talks with Avalanche token holders and enterprises to ensure liquidity on Uniswap v3.
The Ankr team is excited to see an aAVAXb/AVAX Liquidity Pool (LP) on the Binance Smart Chain. Liquidity providers will also find that LPs with minimal to no temporary losses are a highly appealing option.
New features coming to Avalanche Bond Launchpad soon
To redeem aAVAXb for 1 AVAX, you must first earn aAVAXb and wait up to 14 days. aAVAXb comes after the immediate liquidity pool, which will start in a few weeks. 3% of your AVAX tokens will stay in the immediate liquidity pool if you don’t use this new function.
AVAXb holders are accountable for 3 percent of staking rewards lost due to the immediate liquidity pool’s fees.
As a result, aAVAX investors will lose 2% in service fees and 3% in AVAX stakes, totaling 4.94%.
The third feature, aAVAXb redemption, and Avalanche futures claims will be available soon. It will have the same expiration date as the Avalanche StakeFi validator node.
After expiry, aAVAXf holders may buy aAVAXf at a discount and claim the fair value on StakeFi. Bounce Finance will charge a 0.25 percent fee for people who purchase aAVAXf tokens. In order to get AVAX tokens, aAVAXf sellers will have access to short-term liquidity.
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