Protocol Differences

Even though EXIT10 is a fork of Chicken Bonds, the two protocols can behave quite differently.

Floor Price Increase vs Staking

All fees generated by Chicken Bonds (with the exception of Chicken-In fees) are sent to the Reserve Bucket which causes the redemption price of boosted tokens to increase. In order to realize gains, a boosted token holder must either sell their tokens on the secondary market or burn them through the Smart Contract and redeem the underlying.

EXIT10 utilizes a staking mechanism in order to distribute EXIT to base token holders instead. This enables BLP to choose when to realize those gains. It also maintains the redeemability value of base tokens at a 1:1 exchange rate for the Base Asset.

Protocol Acquired Liquidity vs Exit Liquidity

Chicken Bonds exist to enable the acquisition of protocol owned liquidity for Liquity. EXIT10 exists as a way for Open Bakery to raise funds to bootstrap itself in order to continuously ship products on top of the Ethereum ecosystem into the future.

80% of the acquired liquidity by the protocol and 90% of the generated transaction fees is distributed back to protocol participants once ETH reaches 10K, none of it stays locked as protocol owned liquidity. Most of this liquidity is given back to EXIT token holders. To mint EXIT, users must either Chicken-In, provide Exit liquidity to users in the incentivised EXIT/USDC pool or stake BLP tokens. This influences the optimal bonding time and changes the way one would participate in EXIT10 compared to Chicken Bonds.

Chicken-In fee

In order to incentivize liquidity in the LUSD/BLUSD pool, Chicken Bonds apply a 3% fee on the acquired token value of a Chicken-In. EXIT10 does not incentivize base token liquidity.

Stable vs LP Bonds

In Chicken Bonds, users bond LUSD, a stable coin pegged to the Dollar, in order to mint a stable token with intrinsic amplified yield. EXIT10 actually requires users to bond a specific Uniswap V3 position which means that the underlying composition of the bond is constantly changing, sometimes composed of more USD and sometimes ETH. This means that each bond will have different points in time where they are profitable throughout their journey to ETH 10K, with the ultimate goal of 100% profitability once ETH reaches this target.