Paladin DAO


What is minting?

Minting is the secondary value accrual strategy of Paladin DAO. When users mint Pal tokens, they are actually selling their assets in order to buy a bond from the protocol. Minting Actions are a cross between a fixed income product, a futures contract, and an option. The protocol quotes the minter with terms for a trade at a future date. These terms include a predefined amount of Pal the minter will mint and the time when vesting is complete. The bond becomes redeemable as it vests. I.e. in a 5-day term, after 2 days into the term 40% of the rewards can be claimed.
Minting is an active, short-term strategy. The price discovery mechanism of the secondary bond market renders mints 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.
Allowing users to purchases bonds thorugh Minting allows Paladin DAO 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 Paladin DAO becomes its own market, on top of additional certainty for PD investors, the protocol accrues more and more revenue from LP rewards bolstering our treasury.

Why is it Minting and not Bonding?

Here at Paladin DAO we believe that minting better describes the action that users are taking, when purchasing Pal with different assets. If you go to the "Mint" page of the website, you will be able to mint Pal tokens, effectively selling your assets for discounted Pal tokens. Despite the name difference, a Minting Action is exactly the same as a Bond Purchase on Olympus DAO! You can find the mintings options for Paladin DAO in the Mint Page!