Introduction

Lumio - The bonding protocol for Solana DAOs

What is Lumio ?

Lumio is a permissionless bonding protocol, allowing DAOs and entities to create fixed income products in DeFi.

Bonds are issued by protocols looking to accrue tokens or capital, by offering a yield opportunity to bond purchasers.

More efficient inflation

Bonds allow projects to purchase liquidity for their protocol, instead of renting it through inflation.

As opposed to paying yield farmers to supply assets in a market or liquidity pool, the protocol can purchase this liquidity by selling its own tokens at a discount. This allows any project to build up Protocol Owned Liquidity (POL).

With this mechanism, protocols introduce more stability into their projects through long term liquidity without sacrificing their tokenomics.