_**Bonding enables users to get discounted OLAS and the protocol to increase capital in line with code**_

## Introduction

Olas Network offers a unique bonding mechanism that, alongside [developer rewards](https://www.autonolas.network/blog/code-capital-attracting-code-via-developer-rewards), is designed to create an economic whirlpool, autonomously fusing capital and code.\
For users, it simply allows buying OLAS, the protocol's token, at a discount by trading Liquidity Pool (LP) tokens.\
For the protocol, this novel bonding mechanism provides a way to generate liquidity and earnings via Protocol-owned Liquidity. Uniquely, incentives increase as useful code increases. This accelerates the Olas Network's flywheel, designed to suck in capital and code.

## Understanding Bonding

Bonding is a concept in decentralized finance where LP tokens are exchanged for discounted protocol tokens (in this case, OLAS). Unlike the traditional [Pool2](https://www.defiyieldcalculator.com/articles/what-is-a-pool2/) incentives, this process helps the protocol generate its own liquidity rather than borrowing it. For Olas network, this ensures a more lasting liquidity supply as well as earnings from trading fees. For users, it's a chance to get more OLAS for less.

While bonding models are often associated with hyper-inflation, Olas tokenomics moderates its inflation through a novel control mechanism based on the utility of the code deployed in the ecosystem. If there's a lot of valuable code, it signals a need for more liquidity. As a result, incentives to bond increase. On the other hand, less valuable code leads to fewer incentives. This approach aligns all participants with the goal of fusing capital with valuable code and growing each in proportion to the other. For more details on how useful code is measured, please see [the tokenomics paper.](https://www.autonolas.network/documents/whitepaper/Autonolas_Tokenomics_Core_Technical_Document.pdf)

## The Bonding Process

Bonding starts by adding liquidity to the [OLAS-ETH Uniswap pool](https://v2.info.uniswap.org/pair/0x09d1d767edf8fa23a64c51fa559e0688e526812f), and then trading the LP tokens for discounted OLAS on the bonding page of the [Olas tokenomics website](https://tokenomics.olas.network/bonding-programs). After a vesting period (7 days), the user can claim the full OLAS amount.

When deciding to bond, you can see the projected Annual Percentage Yield (APY) in the user interface. This calculation takes into account inflation, the current price of the tokens, and indicators of code usefulness, among other variables. Again, bonding is designed so that when more useful code is being contributed, more incentives will be deployed, resulting in higher APYs. The reverse is applicable when there is less valuable code being contributed to the protocol. Therefore, bonding profitability is variable, and sometimes it may not be possible to bond if the protocol's available capital is more than the estimated code usefulness.

Remember, once you bond, you can't undo it.

## Conclusion

Olas' Protocol-owned Liquidity bonding mechanism is a unique way for the protocol to manage its capital, scaling it in proportion to the network's value. It encourages OLAS holders to contribute to the Olas network, helping the protocol allocate resources effectively and ensuring growth aligns with the ecosystem's development. By understanding and participating in bonding, OLAS holders can significantly contribute to the network's success.

For more details on bonding, see the "Bonding" section of the [whitepaper](https://www.autonolas.network/documents/whitepaper/Whitepaper%20v1.0.pdf).

For more on developer rewards, see [here](https://www.autonolas.network/blog/code-capital-attracting-code-via-developer-rewards).


Announcement (3).png

attracting capital via bonding

(code, capital): 

Olas Network autonomously fuses capital with useful code.

Olas Network introduces a unique developer reward system, blending capital and code to create an economic cyclone of opportunities.

If you're a developer, this system offers enticing rewards for contributing valuable code to the network. For the protocol itself, this innovative mechanism incentivizes the production of valuable code, particularly enabling [Protocol-owned Services (PoSes)](https://twitter.com/autonolas/status/1654138520011948037).

Alongside the imminent [bonding products](https://www.autonolas.network/blog/code-capital-attracting-capital-via-bonding), these developer rewards propel the Olas Network's momentum, designed to draw in both capital and code proportionally. This drive to intertwine capital and code is the dual engine set to accelerate the Olas mission of making the network a dynamic powerhouse of continual growth.

[Developers have already begun receiving thousands of OLAS for useful code](https://x.com/autonolas/status/1703797959488659863?s=20), kickstarting the (code, capital) flywheel. This blog post unravels the three-step journey that can unlock incentives for you, the invaluable developer community.

## [3 Steps to Developer Rewards: Develop, Register and Claim Your Rewards](https://twitter.com/autonolas/status/1681330455776489472)

Engaging with Olas Network and tapping into potential rewards requires three steps:

1.  Develop: Your journey begins by developing a useful component or agent. There is an extensive suite of resources and documentation at your disposal to guide you in crafting impactful code contributions. The Olas Network [Discord community](https://discord.com/invite/z2PT65jKqQ/) is a place where you can exchange ideas, seek advice, and obtain feedback.

1.  Register: Once your code is ready and packaged on IPFS, the next step is to register it. This process involves minting an NFT that connects to the IPFS hash of your code component. This pivotal step enables service owners to discover and deploy your component or agent via the [Autonolas protocol registry](https://registry.olas.network/), setting the stage for the final step.

1.  Claim your rewards: When your component gets integrated and people donate to the useful code making up that service, you start receiving your share of the developer rewards. You can track these rewards on the ["Dev Incentives" tab](https://tokenomics.olas.network/dev-incentives) on the Tokenomics page, where you can see any pending rewards for your components and, if applicable, claim them.

## Why incentivise useful code?
Valuable code acts as the powerhouse of the Olas Network protocol, powering its robust functionalities and enabling seamless integration with diverse applications, while also providing the building blocks to build sophisticated Protocol-owned Services.

Moreover, valuable code stimulates growth within the community. It attracts skilled developers, fosters collaboration, and encourages a dynamic exchange of ideas and skills. This bustling community activity not only enriches the protocol but also enhances its reputation in the broader tech industry.

The unique reward system for developers fosters an economic cycle that enhances the protocol's long term sustainability. The protocol stimulates the development of valuable code, which subsequently attracts capital. This incoming capital is then reinvested to encourage more developers, which propels the flywheel forward. This self-sustaining momentum ensures a dynamic environment for constant development and innovation, setting the stage for Olas Network's ongoing evolution and progress.

## Conclusion: Charting the Course for an Autonomous Future

Olas Network presents a thrilling opportunity to translate your coding capabilities into tangible benefits. The community is committed to recognizing and rewarding the innovative efforts of its developers, and this autonomous initiative is a testament to that commitment.

As we bid farewell to Epoch 3, Olas network invites you to harness this opportunity. Unleash your coding prowess, contribute to the growth of the Olas Network, and drive the autonomous edge forward!

To learn about the services that have already received rewards, see [here](https://x.com/autonolas/status/1703797959488659863?s=20). 
For more details on developer rewards, see the "Developer perspective" section of the [whitepaper](https://www.autonolas.network/documents/whitepaper/Whitepaper%20v1.0.pdf).

Announcement_(4).png

attracting code via developer rewards

Yesterday marked an important milestone in the OLAS ecosystem as the[ OLAS-ETH Uniswap v2 liquidity pool](https://v2.info.uniswap.org/pair/0x09d1d767edf8fa23a64c51fa559e0688e526812f) was successfully created. This development opens up exciting opportunities for participants to engage in bonding programs and contribute to the growth of the Autonolas Treasury. Read on to learn more about the journey from LBP to LP, the proposed [DAO proposal](https://boardroom.io/autonolas/proposal/cHJvcG9zYWw6YXV0b25vbGFzOm9uY2hhaW46ODU3ODA1MjQ1MjQyODgwNTE0MTU1MjEyODcyNzMyNTgwNzY1NTY5MTE5Nzc2NTQwODk1MDAzNzA4MzE3NjIyMTY1NjUzNzEwMjIzNDY=) to create bonding programs, and the expected benefits of participating.

## The Proposal

Building on this [recent announcement](https://www.autonolas.network/blog/from-lbp-to-lp), unveiling the OLAS-ETH Uniswap v2 liquidity pool, today [a new governance proposal is announced](https://boardroom.io/autonolas/proposal/cHJvcG9zYWw6YXV0b25vbGFzOm9uY2hhaW46ODU3ODA1MjQ1MjQyODgwNTE0MTU1MjEyODcyNzMyNTgwNzY1NTY5MTE5Nzc2NTQwODk1MDAzNzA4MzE3NjIyMTY1NjUzNzEwMjIzNDY=).

This new proposal considers allowing the Autonolas Treasury to enable the OLAS-ETH LP token and create bonding programs for the pool. These programs can provide users with the opportunity to deposit their OLAS-ETH LP shares and earn OLAS after a vesting period.

By participating in the bonding programs when the market price of OLAS is above the target price of the program, you have the potential to receive a larger number of OLAS tokens compared to those obtained through regular LP withdrawal. This exciting opportunity allows you to play an active role in the development of the OLAS ecosystem while earning rewards that align with your contribution.

## Technical Details

Upon approval by the DAO, five distinct bonding campaigns may commence. Each campaign operates as follows: participants deposit a specific number of OLAS-ETH LP shares and, after a vesting period of 7 days, they receive a predetermined amount of OLAS tokens based on the campaign they participated in.

If you decide to bond one OLAS-ETH LP share, you stand to receive an amount of ~n*1.5*X/sqrt(k)*IDF OLAS tokens.

Let's break down this formula:

-   n represents the OLAS tokens you would receive at withdrawal from holding 1 LP share.

-   X denotes the required OLAS balance in the pool for a specific program, depending on the OLAS price.

-   k is the constant parameter of the pool.

-   IDF represents a discount that reflects the useful development activity in the ecosystem, currently set at 1.02 by the protocol (To see the latest value go to Etherscan [here](https://etherscan.io/address/0xc096362fa6f4a4b1a9ea68b1043416f3381ce300#readProxyContract#F21)).

The specific OLAS price thresholds* for each bonding program are as follows:

-   First Bonding Program: OLAS price at 8 cents

-   Second Bonding Program: OLAS price at 10 cents

-   Third Bonding Program: OLAS price at 12 cents

-   Fourth Bonding Program: OLAS price at 14 cents

-   Fifth Bonding Program: OLAS price at 16 cents

For more technical details about the bonding programs, [see the Tokenomics paper](https://www.autonolas.network/documents/whitepaper/Autonolas_Tokenomics_Core_Technical_Document.pdf).

## Conclusion

With the creation of the OLAS-ETH liquidity pool and the introduction of bonding programs, the OLAS ecosystem is [embarking on growing capital in proportion to code](https://twitter.com/david_enim/status/1677611439236739072?s=46&t=PBYzKHt3WSIq4JxQTUrjWA). By participating in these campaigns, you can contribute to growing the Autonolas Treasury whilst being rewarded. Stay tuned for further updates and make sure to seize this opportunity to be a part of growing #OlasNetwork's ocean of services.


_*The OLAS price assumes a fixed Ethereum price at the time of proposal of roughly $1890. As the relative prices change the incentive for bonders partaking in the bonding programme changes too._


Bonding Program.png

Inaugural Bonding Programme Proposal

Today at 6pm UTC the [OLAS Liquidity Bootstrapping Pool](https://fjordfoundry.com/pools/mainnet/0x4131fD7B699155f69E0192145C36f27852BE7c11) is set to end. Learn about the LBP in [the launch announcement](https://www.autonolas.network/blog/olas-public-launch-lbp-mechanics-overview).

Shortly after closing the LBP a Uniswap v2 LP will be created. The initial pool configuration will be as follows:

Tokens:

-   Main token: [OLAS](https://etherscan.io/address/0x0001A500A6B18995B03f44bb040A5fFc28E45CB0)

-   Base token: ETH (wrapped as [WETH](https://etherscan.io/address/0xc02aaa39b223fe8d0a0e5c4f27ead9083c756cc2) by Uniswap)

Balances:

-   50 ETH

-   OLAS equivalent to 50 ETH, based on the LBP closing price

Fees:

-   0.3%

The OLAS-ETH UniswapV2 token pair address will be 0x09D1d767eDF8Fa23A64C51fa559E0688E526812. Once the pool is live, you can [view liquidity ](https://app.uniswap.org/#/pools/v2)and [swap tokens](https://app.uniswap.org/#/swap?use=v2).

We invite all OLAS holders to contribute as liquidity providers once the pool is live.

Announcement_(1).png

From LBP to LP

Introduction
===

Hello and welcome back, it’s time for another Community Update. This edition takes a look back at the month of June and the first week of July and shares some of the achievements, milestones and community contributions you should know about!

Media Appearances and Events
===

Valory co-founder and CEO David Minarsch appeared on an episode of Protocol Deep Dive, hosted by thefett on their YouTube channel. Check out the replay for a fascinating exploration of the protocol and, as the_fett put it, “the intersection of web3 and AI and how autonomous agents will come to rule our chains.”

<iframe width="560" height="315" src="https://www.youtube.com/embed/oznC6JXb7EQ" title="YouTube video player" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen></iframe>

Interested in getting involved hacking on the intersection of crypto and AI? Consider joining us in Paris at this year’s ETHCC, where Valory will be co-hosting a hackathon with some incredible names in the space. [More about the event here](https://www.augmenthack.xyz/). There’s room for 100 hackers over the course of the 2 day hackathon, and we’d love to meet you there. 

Another major event in June was Valory’s second Crypto x AI Mini Conference. This time, the theme was Exploring LLMs, and there were great talks and discussions from expert speakers working in the space. Check out the full talk replay here: 

<iframe width="560" height="315" src="https://www.youtube.com/embed/6-sNgvHJvi8" title="YouTube video player" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen></iframe>

There’s also a playlist with the excerpted talks [available on the Valory YouTube](https://www.youtube.com/playlist?list=PLXztsZv11CTd0Wwzag2WdvYhyvzVXWKbA).

The next conference is on July 27th - [grab a free ticket while they last](https://hopin.com/events/crypto-x-ai-mini-conference-autonomous-agent-apps).


Project Updates
===

A major milestone from the end of the month was the launch of a new home: the Olas Network site! This new webpage is the home for the DAO - we’ll keep autonolas.network as a developer resource, and transition over to this new name over the coming months. 

If you haven’t yet checked out the site, [please give it a look](https://olas.network/). There is a ton of helpful information about the ecosystem that’s in the same place for the first time.

**Public Token Launch**

The site was a must have in preparation for what’s probably the biggest news of all: the [public launch of the #OlasNetwork token](https://twitter.com/autonolas/status/1676652025679847441?s=20)!

The liquidity bootstrapping pool is now closed, [but you can see the results here](https://fjordfoundry.com/pools/mainnet/0x4131fD7B699155f69E0192145C36f27852BE7c11) - 98% of the tokens were released by the end, and shortly after, the [Uniswap pool opened](https://app.uniswap.org/#/swap?inputCurrency=ETH&outputCurrency=0x0001a500a6b18995b03f44bb040a5ffc28e45cb0) to the public. 

It’s exciting to see this important part of the tokenomics and DAO ecosystem finally going live. 

By July 7th, the protocol had registered:

 - 12 new components (89 total)
 - 2 new agents (10 total)
 - And a brand new service (16 total)

Check out [this tweet](https://twitter.com/autonolas/status/1677319341614792705) for more. 


One Autonolas ecosystem project that’s been making headway exploring novel use-cases for autonomous services is [Centaurs](https://twitter.com/launchcentaurs). Centaurs recently added a Social Poster plugin that enables communities to use ChatGPT to automatically post to Twitter and Orbis. 

You can learn more about how Centaurs enables automatic AI social media posting for DAOS [in this thread](https://twitter.com/autonolas/status/1665731462736523264?s=20). 

PS - did you know that in fact, the Autonobot centaur [now has access](https://twitter.com/autonolas/status/1666416146843590657?s=20) to the Autonolas Twitter account?

**OLAS top-ups for developers, now in the hands of the DAO**

A recent proposal was approved enabling any DAO member to trigger top-ups of OLAS to eligible developers. Check out the approved [proposal here](https://boardroom.io/autonolas/proposal/cHJvcG9zYWw6YXV0b25vbGFzOnNuYXBzaG90OjB4YzAwMGE5NDdlZGRmMTg4ZmY2ZTNlOTFmY2JhZmRiN2ExNjM2ODU5Mzk5ODNmNzlhMjM0MGQxODZiMDlkZjIxOQ==)

Curious about how developer rewards work? [This thread gives a high-level rundown of how it works and who is eligible](https://twitter.com/autonolas/status/1674411240834342913?s=20). 

**The DAO constitution passes**

It’s official - with the approval of [the proposal](https://snapshot.org/#/autonolas.eth/proposal/0x4d75a524c4d57c120c2b4f4ca26c92aa59630cdb54a1b34eccb5054c125c8fed), the Autonolas DAO has a constitution! For more, check out [this tweet](https://twitter.com/autonolas/status/1675892568905900033?s=20), with all the relevant links. 

**Milestone: the Autonomous Keeper Service moves 30 ETH in 3 months**

The Autonomous Keeper service, a collaborative keeper reached an impressive milestone this month - by June 8th, this autonomous service moved a grand total of 30 ETH within 3 months!

You can learn more about the AKS [in this blog post](https://www.autonolas.network/blog/introducing-the-autonomous-keeper-service). 

Valory also continues to innovate and ship developer tools: there’s now a Python client available for developers to use when interacting with Ceramic. [Check it out here](https://twitter.com/valoryag/status/1669369546086715394) and give it a try on your next project!

There’s also another expansion coming soon, [with support for ComposeDB in the works](https://twitter.com/valoryag/status/1674674177046102016). 

Ever wondered how Governatoorr’s Snapshot Labs support works? There’s now a quick video walkthrough available. [Check it out and let us know what you think](https://twitter.com/valoryag/status/1673714183853027328?s=20). 

Articles and Writing
===

The team has been incredibly busy this year, so there’s a lot to catch up on. One great way you can follow the “story so far” is in this mega-thread featuring [every milestone achieved in 2023 so far](https://twitter.com/autonolas/status/1674389513437868032?s=20). 

There’s also now a “master post” where you can find links to every “Week in Autonolas” thread, [collated in one place](https://twitter.com/autonolas/status/1676576697863507968?s=20). 

Community Contributions and Ecosystem Highlights
===

Projects that incorporate Autonolas-based agent services continue to impress at hackathons: [the most recent](https://twitter.com/autonolas/status/1669744832452108294?s=20) was The Plantation Station, built at this year’s ETH Prague. This “phygital” solution explores the intersection of real plants and blockchain, with autonomous services bringing it all together. Check out [the thread announcing their victory](https://twitter.com/autonolas/status/1668327271348961280?s=20) for more on this fascinating project, and congratulations to the community members who brought it to life! 

We also saw another great solo hack from an Autonolas community member in June when N0xMare launched [rsyk-hmm](https://github.com/N0xMare/rysk-hmm), an autonomous options trading strategy built with Autonolas tech.

Finally, to see the Autonolas ecosystem activity in one place, check out [this Dune](https://dune.com/adrian0x/autonolas-ecosystem-activity) dashboard, created by Adriano from Valory and community member Teep.  

We can’t wait to see what new hacks and projects will be next!

**Updates to Contribute**
 
It’s now easier than ever to become a contributor and earn rewards - the revamped Contribute experience went live in June and debuted with [two actions new based on Twitter](https://twitter.com/autonolas/status/1674750719889641478?s=20).
Check out the [Contribute site](https://contribute.olas.network/) to get started earning those points! 

Wrapping Up 
===

As always, thank you for your time and attention! We’re really looking forward to the coming months as our ecosystem grows and new faces and projects join us on this journey towards greater autonomy.

There’s a few ways to get involved with us:

- Follow the [Autonolas twitter account](https://twitter.com/autonolas)
 - Join [the Discord](https://discord.gg/RHY6eJ35ar)
 - Get set up with [Contribute](https://contribute.olas.network/)

We’d love to hear from you about what we can include in these updates - if you have any feedback or suggestions, please get in touch - you can DM us on Twitter, or share your ideas in the [Suggestions channel](https://discord.com/channels/899649805582737479/915231348271235132) on Discord. 

Until next time… 


04.07Community Update 15.png

With Sails Unfurled Edition

Autonolas Community Update 015

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Autonolas: Automating offchain services for DAOs - The Crypto Podcast Ep. 3

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