⚫Black Hole - Liquidity Marketplace
Powering Cross Protocol Liquidity for Arbitrum
Protocol Owned Liquidity Marketplace (POL marketplace)
Black Hole by Parallax is a marketplace for bonded assets that are interesting-bearing with flywheel mechanisms.
Our partnering protocols can leverage Black Hole to build up their warchest of liquidity. Through Black Hole, users can earn predictable yields on their favorite flywheel assets. One use case involves Black Hole creating a marketplace that enables any protocol to create bonds for its own tokens. This helps protocols accumulate sticky liquidity for their tokens.
Black Hole’s bond creation is permissionless, composable, and modular, allowing anyone to sell and trade. Buyers receive tokenized Bond Tokens representing their positions, which facilitates the creation of secondary markets. The system’s unified contract architecture enables flexible creation of new bond assets and auction interfaces.
What are the benefits of Bonding?
Bonding allows a protocol to bootstrap and deepen liquidity:
Depth in POL helps protocols ensure their users that liquidity is sufficient, regardless of market conditions.
Liquidity that is locked in the protocol’s treasury provides a constant source of revenue from transaction fees, creating a new revenue stream.
Type of Bonds
There are two types of bonds, fixed term and fixed expiry bonds.
Fixed term bonds will vest for a period of time following the purchase.
Fixed expiry bonds on the other hand, vests with a specific time stamp.
Use case for Protocol looking to rent liquidity
Protocols can leverage our marketplace for liquidity in the following ways:
1. Bootstrapping liquidity
Launch a liquidity bootstrapping event (LBE)
Acquire their own liquidity by using the price data from our marketplace and create their bond market
2. Existing protocols
Deepen current liquidity by redirecting incentives to bond market
Monitor POL tokens acquired and can decide to turn off boost incentives anytime
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