Koifinance
Koifinance bonds exchange KOI-ETH pool shares for KOI with a seven-day lock
Koifinance bonds exchange KOI-ETH liquidity provider (LP) tokens for KOI that enters a seven-day veKOI lock. Buying a bond transfers the LP share to the Koi DAO and changes the holder's exposure from pooled KOI and ETH to KOI alone. The quoted discount concerns the exchange value at purchase, while the token price can change during the lock. This makes bonding different from keeping a pool position or acquiring unlocked KOI through a swap. The decision combines the acquisition cost, access to the underlying tokens, and the assets that the holder wants to own.
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The bond's quoted ROI uses LP input value as its base, so it differs from a discount measured against KOI market value.
Ownership of the submitted pool share
LP tokens represent a liquidity provider's share of a pool, and a bond transfers that share to the DAO. The seller gives up the corresponding pool claim and the opportunity to earn future trading fees from that transferred share.
Protocol-owned liquidity describes the DAO's side of this exchange. The acquired pool share can contribute revenue to the treasury and support trading liquidity. The seller receives the quoted KOI position, rather than retaining a personal claim on both sides of the submitted liquidity. This distinction matters when the original reason for holding the pool position included ETH exposure.
What does the bond's quoted ROI measure?
The bond's quoted ROI measures the purchase-time value uplift over the KOI-ETH LP value that the buyer contributes. It describes the exchange terms, not an annual percentage yield.
The relationship is
quoted ROI = (quoted KOI market value / contributed LP value) - 1
. Both valuations need the same unit and observation time. ROI uses the LP input as its base. A discount measured against the KOI market value uses a different denominator. For the same quote,
market-price discount = ROI / (1 + ROI)
, with ROI expressed as a decimal.
A positive quoted ROI values the KOI above the surrendered LP input at purchase. Subsequent KOI price changes determine whether that initial advantage survives. A falling price can outweigh the discount before redemption becomes available.
The acquisition cost per KOI comes from dividing the LP value surrendered by the quoted KOI amount. Additional transaction costs increase that cost. Comparing only the token quantities would overlook both the value of the pool share and those expenses.
What does the seven-day lock prevent?
The lock prevents redemption of the underlying KOI until the veKOI position reaches its expiry. The documented bond uses a seven-day veKOI lock.
veKOI is an NFT that records the underlying KOI amount, voting weight, and expiry date. The token amount identifies the KOI available for eventual redemption; the voting weight determines its influence within the DAO.
A veKOI NFT can change ownership through a transfer or sale while its underlying KOI remains locked. Transferring the NFT does not redeem those tokens. Permission to transfer also does not establish that someone will buy the position at an acceptable price.
After expiry, the holder can redeem and burn the NFT for its underlying KOI. Redemption does not reverse the earlier LP sale or convert the proceeds into ETH, and the market value can differ from the purchase-time valuation.
First-come offers and changing quotes
The documented offering cycle starts at 0% ROI and increases the quote until someone purchases the bond. That purchase resets the cycle for a new offering. First-come availability creates a trade-off between waiting for better terms and another buyer taking the offer. An earlier displayed percentage therefore cannot establish a later purchase price. The KOI amount and vesting terms need to belong to the same available offer.
Should I reconsider a bond after its quote changes?
A changed quote requires a fresh comparison of the KOI amount, contributed LP value, and associated costs.
Suppose the displayed ROI falls after an earlier offer looked attractive. Another purchase can reset the offering, so the previous percentage no longer establishes the exchange terms. Re-reading the available quote changes no holdings and tests whether the earlier cost assumption still holds.
- Match the intended payment to the KOI-ETH LP asset that the offering accepts.
- Compare the new KOI amount with the current value of the LP tokens surrendered.
- Include the network fee and any costs of obtaining the accepted LP tokens.
- Confirm that the underlying KOI can remain locked for the required seven days.
- Decide whether replacing the pool share with KOI still matches the intended asset exposure.
If the replacement offer fails a required condition, the earlier decision no longer applies. A higher percentage cannot resolve a mismatch in the payment asset or the need to redeem before expiry.
Costs beyond the LP value
The total acquisition cost includes the surrendered pool value and the expenses required to complete the exchange. Existing LP holdings and assets that still need conversion can produce different costs. Include separate fees for obtaining the accepted tokens without counting their asset value twice.
On zkSync Era, network fees reflect computation and data-publication costs. The transaction's work and network pricing influence the expense, so a bond's ROI percentage cannot establish a fixed gas charge. An estimate for the intended transaction is more relevant than a fee copied from a different operation.
Compare the total cost and the eventual KOI sale value in the same unit. Redemption releases the underlying tokens, while a market sale determines what those tokens buy. A purchase-time discount can coexist with a lower eventual sale value; funds needed during the lock remain unavailable through underlying-token redemption.
Answers to common questions
Does leaving an amplifier to fund a bond affect unmatured rewards?
An early withdrawal forfeits remaining unmatured rewards under Koifinance's documented amplifier model. If that withdrawal supplies the LP tokens for a bond, the forfeited rewards belong in the cost comparison. The bond's quoted discount does not automatically compensate for rewards lost when leaving a farming position.
Are a bond's quoted KOI tokens equal to its veKOI vote shares?
The quoted KOI amount and veKOI voting weight measure different things. The quote concerns underlying tokens, while vote shares depend on both the locked amount and lock duration. Counting voting weight as additional redeemable KOI would overstate the bond's token proceeds.
Can a veKOI lock from a bond be extended?
The veKOI protocol supports increasing a position's lock period. Extending the lock delays redemption eligibility and changes the duration used to calculate voting weight. It does not restore the LP share that the bond sold or retroactively increase the original bond's quoted KOI amount.
Is the historical MUTE-to-KOI migration another form of bonding?
The MUTE-to-KOI migration and KOI bonding involve different exchanges. The 2024 rebrand migration converted the old token into KOI. Bonding sells a KOI-ETH LP share for locked KOI. Historical migration ratios and deadlines do not determine a bond's discount or vesting terms.
Do I need to buy a bond before locking KOI that I already hold?
Existing KOI can enter a veKOI lock directly without a bond purchase. Direct locking starts with KOI that the holder already owns. The bond route starts with the accepted LP asset and exchanges it for KOI under the bond's terms; it is a separate acquisition choice.
Can bond-derived veKOI increase an amplifier's rewards?
Vote shares delegated to the farming account can raise its amplifier reward rate when the pool offers an additional boost. The boost depends on the account's vote-share value relative to its deposited LP value and the pool's configured rates. Votes delegated elsewhere do not boost the NFT owner's own farming account, and the bond's KOI quote alone does not establish a farming return.
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