Lumio - The bonding protocol for Solana DAOs
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.
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.