> For the complete documentation index, see [llms.txt](https://o2dao.gitbook.io/o2-dao-documentation/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://o2dao.gitbook.io/o2-dao-documentation/mechanisms/bonding.md). # Bonding ## How does bonding works? Bonding allows you to buy OTWO at a lower cost basis. In return for selling your asset-pair (LP), the protocol will sell you OTWO at a discount. The idea here is that bonds will give you some amount more OTWO than you would have received if you had bought on the market and then staked. The amount of “how much more” will be determined by how many bonds there are already available. As opposed to staking, bonding is more an active, short-term strategy. The bonding market can be seen as a parallel market to $OTWO, more unpredictable and risky. Therefore bonding requires users to manage their investment actively and monitor the bonding rates constantly in order to be as profitable as someone using staking. With OTWO, the process of purchasing bonds has been simplified to a one-step process. Instead of having to purchase the LP tokens then trading them for Bonds, users only need to have the asset-pair (wsOHM + OTWO) in their wallet to purchase the bonds directly. Bonds are vested for 5 days and are paid out per block height. For example, if you were to purchase a bond, after the first day you would have received 20% of the vested amount, then 40% after the second day, until 100%. To sum up, the following assets will be used as bonds. * OTWO-wsOHM * wsOHM ## --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter: ``` GET https://o2dao.gitbook.io/o2-dao-documentation/mechanisms/bonding.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.