Position Exchange
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Position Exchange is a Decentralized Crypto platform with a complete Ecosystem aiming to bridge the gap between people and cryptocurrency and enhance DeFi experience. The protocol is fully owned & governed by its community and offers a wide range of DeFi products for all kinds of users in an open, transparent and trustless system where everything runs on-chain. Position Exchange is creating a complete feature, providing financial solutions to DeFi users, and introducing bonds to the blockchain. Due to decentralization, Position Exchange does not manage and use any of your personal information.

Actions with a bond

Issue a bond

You can issue your own bond to borrow tokens from the community. You can use POSI or NFT available in your wallet (except birthday NFT, staking NFT, and yet to decomposed NFT) as collateral. The condition is that the total POSI or Total NFT Par Value as collateral must be greater or at least equal to a minimum of 10,000 POSI excluding a 1% RFI fee.
Currently, only POSI and NFTs on Position Exchange are allowed as collateral. We are working to facilitate other types of cryptos in the near future.

Purchase a bond

You can purchase a bond when it reaches the on-sale phase or purchase it on Bond Exchange when it’s in the active phase.
When users use face assets to purchase bonds, users will pay at the issued price. Please take note that the maximum quantity of bonds you can buy is equal to the available amount of the bonds.

Manage a bond - For issuers

  1. 1.
    Add collateral
You can add collateral (depending on which types of crypto you use as collateral) after a bond has been created and whenever you want to start from the beginning of the on-sale phase. When the LTV is close to 75%, you must adjust the collateral to ensure it is not liquidated. In contrast, your bond will be liquidated and you will lose all collateral once the LTV reaches 80%.
2. Remove/ withdraw collateral
You can remove collateral after a bond has been created and the bond’s LTV is less than 65%. The decision whether to remove collateral or not is all of yours but it's recommended to remove collateral when the LTV is less than 65%
3. Repay assets
You can repay assets in case: Bonds are in the active or matured phase. The number of bonds sold is greater than 0. Issuers must repay face assets within 7 days before the maturity date. If not, bonds will be liquidated, which means the collateral will be distributed to bondholders.
4. Cancel issuing bond
You can cancel issuing bonds when your bond has to be newly created and in Pending status.
5. Claim assets
You can claim assets when bonds are in the active or matured phase or the number of bonds sold is greater than 0

Claim asset as a bondholder

Bondholders can claim assets when bonds are matured or liquidated.
  • Once the bond reaches its maturity date, issuers repay on schedule. At this point, you can claim back face assets. Claimable Face Asset = Bond unit holding * face value In which: Bond unit holding = total bond units in your wallet
  • A bond is liquidated when underlying assets/Face Assets TWAP reach the liquidation price or the bond issuer does not repay on schedule. At that point, you can claim your collateral according to the ratio of your holding amount to the total sold amount of bonds. Claimable Underlying Asset = [Total Collateral amount / Total bonds sold] * Bond unit holding In which: Bond unit holding = total bond units in your wallet

Liquidation rule

  • The bond will be liquidated when its LTV reaches 80%.
LTV = Loan value (Total sold unit * Issue Price) / Collateral * Collateral TWAP price
  • The bond will be liquidated if the issuers do not repay before the maturity date. You will not be repaid until the maturity date

The effects of liquidation

  • When a bond is liquidated or matured, users can no longer trade it on Bond Exchange.
  • The system will distribute the issuer’s collateral to the holder as a percentage of holding.
Description Index of bond
Index
Description
Collateral amount
Your value for collateral with 10,000 POSI minimum YTM = ([Face value] - [Issue Price]) / Issue Price* 100%
Issue Price
The price at which you want to sell a bond
Face value
The price that the issuer pays for each bond at its maturity date
Supply
Total units supplied for this bond that is set by issuers when issuing
Maturity date:
The time when the bond is matured
Liquidation price
The price at which the bond is liquidated
Contract
Contract address
Issuer
Wallet address of the issuer
Underlying asset
The token that is used as collateral
Face asset
The asset that the issuer pays at the time of maturity
TWAP index price:
TWAP in 3 days calculate by second calculated equal to Underlying asset/Face asset and Face asset
Bond Duration
The lifetime of a bond from active date to maturity date

Bond Status

There are 5 status phases of Position P2P Bond:
  • Pending: Bonds are pending to be approved and set up.
  • On-sale: Bonds are ready to be purchased.
  • Active: Bondholders can now Exchange or Stake your bonds which are available on pools with fixed APR.
  • Matured: Once the Bond reaches its maturity date, the issuer will pay back the investment plus interest. Bondholders can claim back face assets at this point.
  • Liquidated: The bond is liquidated

P2P Bonds Introduction

Bonds are a great financial instrument that has a stable and predictable income stream and big market demand. Bonds follow a similar format but provide higher/stable returns and are targeted for a bigger market. Users can go from individuals to organizations or companies. Bonds also have broader use-cases and purposes, they can be exchanged, used for governance, financing, and much more. It is a highly useful financial instrument and integrating it in the Blockchain can be game-breaking!
Position P2P Bonds can be used as a financial instrument, allowing users to borrow assets from other users by issuing Bonds. They’re also integrated on-chain and powered by smart contracts like Position Bond.
You can issue a bond to borrow tokens I want from the community. You also can purchase bonds and stake them in the Bond Pool with a stable and fixed APR for a determined duration and once the bonds reach maturity, the issuer will pay back the investment plus interest. The bonds will be backed by assets as collateral and will be locked in smart contracts. Payment to investors when bonds reach maturity will be ensured and guaranteed by Position Exchange.
If you have any questions, please refer to our FAQs and contact us on our support page.
Last modified 2mo ago