Phoenix Bonds

Phoenix Bonds operates a treasury consisting of three parts: Pending Bucket, Reserve Bucket and Permanent Bucket. Users bond $NEAR to the Pending Bucket to create a bond. The bonded $NEAR is then staked in LiNEAR protocol to generate staking rewards. The yield earned by the Pending Bucket flows to the Reserve Bucket. Users accumulate balance of $pNEAR over time. $pNEAR represents the ownership of Reserve Bucket shares. The floor price of $pNEAR will continue to appreciate against $NEAR. All $NEAR in the three buckets will be deposited into LiNEAR protocol to generate staking rewards.

In Phoenix Bonds, there are three main actions:

1. Cancel – Users can withdraw the bonded amount of $NEAR anytime before they choose to claim $pNEAR.
2. Claim – Users can claim the accumulated $pNEAR, while their bonded $NEAR (now staked as $LiNEAR) enters the Reserve Bucket and the Permanent Bucket.
3. Redeem – Users can redeem $pNEAR proportionally for $NEAR from the Reserve Bucket any time.

Yield amplification for $pNEAR holders comes from the fact that yields from all three buckets (Pending, Reserve, Permanent) flow to the Reserve Bucket. Since $pNEAR can always be redeemed proportionally for $NEAR in the Reserve Bucket, the $pNEAR token captures extra rewards generated by $NEAR that’s outside the Reserve, creating an amplified yield.

With a steady stream of users choosing to bond $NEAR in the Pending Bucket, together with the protocol-owned $pNEAR in the Permanent Bucket that guarantees additional yields, the rate of return for holding $pNEAR is set to be higher than that of ordinary $NEAR staking. The earlier you participate, the higher the rate of return you could potentially earn.