FAQs

No, it is very unlikely you will make that kind of return investing in Bond. Fixed Income investment (Bond) is meant to be safe, where you will NOT lose your capital, but you will also make a lower return! Investing in Optim Bond is like buying government treasuries, which is very safe and there is NO chance of default, the only risk you have is Smart Contract risk where hackers can drain the smart contract.

Bonds are meant to be SAFE investment that is Capital Protected, that means you will NEVER lose your capital. So Bonds are for low risk investors who do not expect 10x or 100x return.

Typical portfolio allocation, most investors will put the bulk of their assets in Bonds, where your capital is protected and only allocate 20% to 40% into high risk investments like Altcoins where you can lose all your capital!

There are trade-offs for buying on each site. To buy a Bond on Optim, you have to deposit Ada into a lending Pool waiting for the Pool to be filled. Sometimes, it takes weeks or months for a Pool to be filled and you will NOT earn any staking rewards while waiting in the Pool. The best time to buy Bond on Optim site is when the Pool is about to be filled, so you have to keep watching the Pool. Sometimes pools with high yield fill up really fast and you miss the chance to buy altogether.

On Danogo, you put in a Buy order, you deposit Ada but retain all your staking right and still earn your staking rewards until you receive the Bond. Thus, if you do not have free time to keep monitoring Optim Pools, you can simply enter your target yield on Danogo site & wait for someone to sell you the Bond. So in this case, you might not get the Highest yield possible but you dont have to spend time watching market all the time too!

On Optim site, you can only subscribe for Bond with fixed duration, 3, 6 or 12 months. So if you want to invest in a different time frame then you have to buy on Danogo.

The best way to learn is by trying.

To reduce risk, you should try buying a SHORT duration bond on Danogo, that will mature in 2-8 weeks, as long as the yield you buy is above 3.5%, it is higher than what you get for Staking then it is a good deal! You can wait a few weeks till the bond matures, then redeem at Optim site, just like a normal Fixed Deposit at your TradFi Bank!

You can only redeem your Optim Bonds for Ada at the Bond maturity on Optim site. So if you need Ada earlier, you will have to sell on Danogo.

Beside that, if you want to change your investment strategy to hold a different Bond duration. Like you bought 3-months Bond A at 5.33% a 4 weeks ago, there is a new 12-months Bond B at 6.5% available, and you dont need your Ada in the next 6 months, it is better to sell off your 3-month Bond A at 6% then buy the 12-month Bond B at 6.5% to get better return. You can only do this on Danogo site.

Danogo smart contract is open-source, guaranteeing transparency and can be verified by anyone for its accuracy. By enabling instant swaps in the same Cardano transaction, Danogo smart contract ensures that there is NO risk when buying or selling on the platform. So once the transaction completes, everything is in your wallet.

On the other hand, when bidding or listing, there's still risk because you will have to deposit your asset. But don't worry, Danogo has been verified very carefully to mitigate this. And the community helps too. Anyone can actively verify the smart contract's integrity at any time to make sure everything's okay and keep the platform safe via this link: https://github.com/Danogo2023/bonds-dex.