I’m not asking you to take any risk. There’s zero risk with Position Exchange bond. Although there’s volatility with Cryptocurrency investment, but this is one of a kind crypto passive income. And I will be explaining it more clearly in this post.
You may have heard a lot about BONDs. But before I even go into clarify what bond is, let me give you some brief overview and what to expect from Position Exchange bond – in case you want to make quick decision.
- It has fixed duration
- It has fixed earning
- You can stake it to earn daily passive income
- The staking APR (Annual Percentage Return) is also fixed
- You can trade or cash-back your investment
- It’s safe and secure
✅ What’s A Bond?
According to Investopedia, a bond is a fixed-income instrument. And a fixed-income security or instrument is an investment that provides a return in the form of interest payment that eventually returns the principal at maturity.
This bond represents a loan made by an investor to a borrower. A type of I-O-U between the lender and borrower that specifies what is to be loaned and the payments.
✅ What’s Position Exchange Bond?
Position Exchange Bonds work exactly like traditional bonds. Its a financial instrument that represent a loan from a lender to a borrower for a fixed return.
However, Position Exchange Bonds are integrated on-chain as BEP20 tokens and powered by smart contracts. These bonds can be Issued, Exchanged and staked for a fixed and high Passive income.
Position Exchange Users can purchase POSI bonds and also stake it in the Bond Pool. This pool is with a stable and fix APR. The duration is determined and once the bonds reach maturity, the issuer pays back the investment plus interest.
The bonds are also backed by crypto assets as collateral and locked in smart contracts. While Payment to investor when bonds reach maturity will be ensured and guaranteed by Position Exchange.
✅ How POSI Bond Works
Imagine “A” is an investor who’s interested in purchasing the bonds with $1,000,000. “B” being the issuer will receive $1,000,000 from “A”. While “A” will receive 1,000,000 bond units.
But to make the bond secured and working, the issuer “B” must provide a security for the bond. This security will be used to pay investors “A” in case the issuer “B” defaults in payment upon the maturity of the bind.
After the agreed duration in years, the issuer “B” must pay back “A” the investor $1,200,000 (the face value $1.2 of the $1 per bond). The issuer “B” can claim the underlying asset, investors “A” can claim the face value from the smart contract.
In case of payment default of the face value, the underlying will be distributed among investors.
Also, “A” can decide to stake all the bond into to the staking pool to earn extra passive income with a fixed APR.
✅ Explaining More About Position Bonds
Let’s explain how the bond interest is calculated. You earn from bonds on a fixed return. Bond are sold at a fixed amount and returns are also paid on a fixed amount. If a bond is sold for $1 per bond, the returns maybe calculated at $1.2 per bond.
Example: (please note that this is just an example). Position Exchange (issuer) decides to issue bonds:
- Issue price: $1.0
- Underlying asset: 500,000 POSI (as security deposit for the bond)
- Face value (par value): $1.2 (Price returns at maturity)
- Quantity to Supply: 1,000,000 units
- Duration: 3 years
- Stake APR: 250% (to earn extra income by staking bonds in POSI pool)
The staking is the extra earning to enable you leverage your bonds. That helps you earn more income while waiting for your bond maturity.
✅ What’s Duration of Bonds?
Before investing in POSI bonds, you should know about the duration of your investment. Bonds are not short term investment. The duration may vary, but it’s from one year to any number of years.
POSI bonds have duration of two to three years or more. That means your bonds are invested for those periods. However, there’s option to cash back anytime.
✅ It Has No Impermanent Loss
Another big advantage of POSI bond is the issue of no impermanent loss. You know what impermanent loss means? Well, it means loss that’s not permanent – and that proves there’s no loss at all for POSI bonds, whether permanent or impermanent.
✅ Safe and Secure Investment
That brings us to the secure nature of POSI bonds. Remember that bonds are secured instruments. They are backed by guarantees, like insurance to guarantee your payment, as at when due.
So, your investment in POSI bonds is secured and backed by huge deposit by the issuer to cover for any inability or challenges of payment.
✅ Trade or Cash-back Your Investment
Although, bonds are long term investment, POSI bonds gives you opportunity to cash back at anytime you need money. That means you can sell your bonds if you need to raise money with it.
So, you shouldn’t be afraid of tying down your money for a long time without access to the funds in emergencies. With POSI bonds you can cash back anytime by offering your bonds for sale in the Position Exchange bond marketplace.
You might ask, why would anyone want to buy another person’s bond? Well, I will explain it more better in the next sub head.
✅ How to Exchange POSI Bond
POSI bond also have a marketplace. You will be able to exchange bonds through a buy and sell platform. Position Bonds can be bought and sold in Position Bond Exchange.
The marketplace is for those who missed buying a bond offer? They can get to buy from the bond marketplace, where those who purchased the bond offering can resell them. The seller might sell you the bond even at face value but you stand to earn from the bond pool from staking.
The Bonds are fully powered by Smart contracts and are implemented as BEP20 tokens. Once the Bond Exchange is fully operational, users will easily exchange Bonds like normal BEP20 tokens.
✅ Stake Bonds and Earn More
POSI bonds are stakable. If you have ever invested in POSI pool, you will love this one. POSI pool are the best choice for guaranteed passive income in the crypto space. You earn daily when you invest in POSI pools.
And POSI has also extended this great feature to its bonds. After you have bought your bonds, POSI allows you to use that bonds and earn extra passive income by staking it in the bond pool.
You will get paid in POSI token daily based on the annual percentage return (APR) defined during the bond sale.
By staking pool the bond, investors now could earn more Yield to Maturity (YTM).
✅ POSI Bond Fixed APR
Yes, the APR (Annual Percentage Return) is fixed. POSI offers you a fixed percentage earning for staking your bonds in the pool. Let me place some assumptions to help you understand the huge benefit of this fixed APR.
POSI bond APR can be 300% or 400%. That depends on the selling proposition for each bond being offered. But these APR are fixed for the duration of the bond contract. That means it doesn’t fluctuation or reduce because of the number of bonds staked.
You will earn exactly the amount stipulated in the APR for the years agreed. Assuming you invested 1,000 POSI in a bond. A 400% APR means you will earn extra 400 POSI from your bond. Remember this is different from the interest paid on the bond.
If you ask me where to invest $1 million right now, I would say POSI bonds. Think about the huge returns from the fixed APR, plus the interest earned on the bonds. That’s a massive YTM (Yield to Maturity).
And you can start with any amount of POSI, depending on the minimum POSI equivalent for a unit of the bond. You can get started now by connecting your wallet to POSI site. The best wallet to use is either Trustwallet or Metamask.
Once you have your wallet connected to POSI, you can buy the bonds or any other investment product on the POSI portal.