The Bonds module is a custom Cosmos SDK module that provides universal token bonding curve functions to mint, burn or swap any token in a Cosmos blockchain.
In the future, once the Cosmos Inter-Blockchain Communication (IBC) protocol is available, this should enable cross-network exchanges of tokens at algorithmically-determined prices.
The Bonds module can be deployed through Cosmos Hubs and Zones to deliver applications such as:
Automated market-makers (see Uniswap)
Decentralised exchanges (see Bancor)
Curation markets (see Relevant)
Development Impact Bonds (see ixo alpha-Bonds)
Continuous organisations (see Moloch DAO)
Hayek famously said that "...prices are an instrument of communication and guidance which embody more information than we directly have".
Any Cosmos application chain that implements the Bonds module is able to perform functions such as:
Issue a new token with custom parameters.
Pool liquidity for reserves.
Provide continuous funding.
Automatically mint and burn tokens at deterministic prices.
Swap tokens atomically within the same network.
Exchange tokens across networks, with the IBC protocol.
Batch token transactions to prevent front-running
Launch a decentralised autonomous initial coin offerings (DAICO)
...and other DeFiant innovations.
The Bonds module framework supports libraries for all types of pricing algorithms, such as:
Positive initial price
Reserved Supply (Augmented)
Each formula is specified within the module library. This includes:
Derived Mint equation
Derived Burn equation
Updates to the module pricing functions must pass through a network governance process to update the module on all nodes, for changes to be made. This is an important security feature.
Each bond has an initial set of constant state (invariant) parameters that cannot be updated once these have been initialised. Parameters include:
Pricing function (the algorithm that will be used)
Reserve wallet address
Transaction fee rate
Exit tax rate
Fee wallet address
Maximum token supply
Order quantity limits
When a bond transaction (such as buy, sell, swap) is submitted, this includes the variable parameters:
Some of the parameters of the bond may be edited:
Order quantity limits
Note: Requires Go 1.13+
This repository is set up as a Cosmos SDK application and contains the Bonds module under
To build and run the application:
Alternatively, to run with one of the users set up to use Ledger:
To build and run the application with some preset accounts:
To run a demo (requires application to be run using
The demo consists of:
A mix of buys and sells
To run a more specific demo, check out the
Guided tutorials are also provided and can be found in the tutorials folder here!