Danogo Staking Bond

What is Danogo Staking Bond?

A Danogo Staking Bond is a loan agreement for non-custodial lending of staking rights to Borrowers. A smart contract locks lender’s ADA and allows a borrower to attach their stake key for a specified duration as long as conditions are met (interest paid)

What is a borrow request?

A Borrow Request is a Borrow Offer that is still waiting for lenders to provide liquidity

A Borrow Request is the set of conditions (duration, volume, and interest rate) for a loan that the borrower agrees to when issuing a bond.

What are Danogo Staking Bond Tokens?

Danogo Bond Tokens are tokens representing a lender’s fractional position in a bond loan. At maturity, they can be swapped for the original ADA plus all accrued interest. Each bond token is worth 100 ADA.

What are Danogo Bond Borrower Tokens?

Danogo Bond Borrower Tokens are tokens representing a borrower’s fractional position of a bond loan. They can be used to change stake key attached to the loan

When are Danogo Bond Tokens issued?

Danogo Bond tokens are issued instantly upon liquidity provision by lenders, even for partial matches, eliminating the need to wait for loans to be fully filled

Why do the borrower have to pay a premium when creating a borrow request?

Premium is the initial interest amount , min ADA and processing fee for seeking available liquidity, paid when a borrow request is issued.

This upfront interest is intended to ensure that when the loan request is provided liquidity, the created bond will have enough interest to stay above the Interest Buffer minimum threshold

Can I change the borrow request?

A Borrow Request can be canceled anytime after it has been created and the borrow volume has not been fully disbursed. Only borrower can cancel their borrow request

Borrower also can change stake key attach to the borrow request

Can I repay interest in installments?

Yes. For bonds with durations greater than 10 epochs, borrowers may repay a minimum initial interest payment of 10 epochs, while the remaining interest can be paid later. However, the borrower must maintain a minimum interest buffer of 6 epochs. If not, the bond will incur a penalty

Is there a penalty for a bond closing before maturity?

When the bond fails to maintain the Interest Buffer above the minimum threshold, it can be closed immediately.

At redemption, the lender may receive additional interest for up to 6 epochs of Interest Buffer and regain the original ADA immediately

What is an Interest Buffer (or Minimum Interest Buffer)?

Minimum Interest Buffer is the minimum amount of interest that must be kept in the bond at all times. If the interest buffer is not maintained, the ADA in the smart contract is no longer locked and the lender can redeem it, at which point the borrower loses the ability to attach their stake key

When can a bond be canceled/closed?

An Active bond can be closed if the borrower does not fulfill the bond's terms by failing to provide adequate interest to maintain the Interest Buffer above the minimum threshold (6 epochs).

An active bond can also be closed once it reaches maturity.

Detailed instructions to redeem closable bonds: link

How do I exchange Bond Tokens for underlying ADA plus interest at maturity?

You redeem ADA by clicking the gift icon button on bond info at “Danogo.io -> My Account -> My Bond” . This icon is only visible when bond is closable