Bound Finance: Cashback Cards Through Crypto-Backed High Yields

In a world where financial systems constantly evolve, Bound Finance emerges as a pioneering force reshaping traditional spending avenues. Offering an unparalleled 12% cashback on purchases made with Visa, Mastercard, or Amex cards, Bound Finance transforms these standard cards into high-yield cashback platforms. This distinctive feature, driven by the LSDFi Cashback feature via the Plaid API, unites Ethereum-backed loan providers in crypto with cashback users, resulting in exceptional cashback rates.

Innovative Transactions

An L1 network comprises three key participants: Developers, Users, and Block Proposers. Each of these entities plays a crucial role in the advancement and preservation of value within the network. However, it is noteworthy that numerous L1 networks have encountered challenges in achieving an equitable distribution of sustainable value among these participants. Block Proposers tend to amass a significant portion of the network shares, leaving Users and Developers, who are often the most engaged contributors, with comparatively fewer shares.

The backbone of Bound Finance's unique offering lies in leveraging ETH collateral from loans to gain validator rewards. This innovative approach funds remarkable cashback rates without necessitating hefty crypto stakes or subscription plans. The revolutionary LSDFi Cashback feature democratizes crypto benefits, breaking down barriers to entry and welcoming entry into cryptocurrency for those wary of volatility, all while ensuring unmatched cashback returns.

A portion equivalent to 10% of returns produced through eUSD collateral will be allocated for the purpose of reimbursing users via the Cashback application. Anywhere from 10% to 30% of generated yields will be directed towards the BCK savings account—an unfiltered, on-chain savings platform for both Crypto and Cashback participants within the Bound Finances ecosystem. Aditioanlly, participants are encouraged to create BCK and place it in the BCK savings account to accrue returns in eUSD.

Bound Finance is not merely a spending platform; it's a financial revolution fostering crypto accessibility, rewarding users, and driving mainstream adoption. The platform's mechanics allow users to deposit ETH and receive BCK, which is pegged 1:1 to ETH. Subsequently, users can mint and borrow BCK interest-free, either earning APY or using BCK in various DeFi protocols. The objective of the network is to ensure that the overwhelming majority of tokens are owned and governed by individuals other than the core team.

The Synergy Between Crypto and Cashback Sides

A portion of 40% from the recently issued tokens is designated to reward active validators and their delegators in proportion to the quantity of Evmos tokens staked. Validators impose a commission rate on the staking rewards earned by their delegators, with each validator having the flexibility to set their own commission rate. However, it is essential to note that there exists a network-wide prescribed minimum commission rate of 5%.

The symbiotic relationship between the crypto and cashback sides of Bound Finance creates a self-fueling cycle. The daily USDC going into the BCK savings account fuels the total cashback allowance, prompting additional USDC injections from protocol profits. This process disrupts equilibrium APY for the savings account, amplifying rewards and enlarging cashback allowances continually.

The brilliance behind Bound Finance is driven by a team of accomplished individuals such as Shuayb Ahmed, the Technical Lead with a BSc in Mathematics, Finance & Economics, Arsalan Toor, the Finance Lead holding a BSc in Economics and Finance, and Oskar Wilkie, the Marketing Lead with a BA in International Business and Marketing.

Several frequently asked questions elucidate the intricate workings of Bound Finance. Explaining how BCK maintains its 1:1 peg with USD through a market-driven mechanism and how users earn interest on their stablecoins by depositing BCK into the savings account.

Bound Finance acknowledges potential bottlenecks in onboarding new validators, promising strategies to streamline the process and mitigate any adverse impact on the APY. The team is dedicated to overcoming challenges to ensure a seamless experience for users.

The Present to an Innovative Future

The vision of Bound Finance extends into the future, aiming to onboard a significant number of validators and prevent potential centralization issues. The team's forward-thinking approach emphasizes a healthy distribution across multiple protocols for decentralization and customer benefits.

Bound Finance's journey unfolds on August 18th with the launch of the crypto side of the project, paving the way for users to deposit BCKETH and earn yields via a private beta of the cashback app. The platform's expansion hinges on the establishment of sufficient validators, seeking VC funding to accelerate the process.