# Bonding 

### What is Bonding?

**Bonding is the value accrual strategy popularized by Olympus Pro (OHM).** It allows Sphynx Labs to acquire its own liquidity and other reserve assets such as FRAX by selling SPHYNX at a discount in exchange for these assets. 

The protocol quotes the bonder with terms such as the bond price, the amount of SPHYNX tokens entitled to the bonder, and the vesting term. The bonder can claim some of the rewards (SPHYNX tokens) as they vest, and at the end of the vesting term, the full amount will be claimable.

**Bonding is an active, short-term strategy.** The price discovery mechanism of the secondary bond market renders bond discounts more or less unpredictable. Therefore bonding is considered a more active investment strategy that has to be monitored constantly in order to be more profitable as compared to staking.

**Bonding allows Sphynx Labs to accumulate its own liquidity.** We call our own liquidity Protocol Owned LIquidity ([POL](broken://pages/-MZPDJB-JrfgPwRn_SND#pol)). More POL ensures there is always locked exit liquidity in our trading pools to facilitate market operations and protect token holders. Since Sphynx Labs becomes its own market, on top of additional certainty for SPHYNX investors, the protocol accrues more and more revenue from LP rewards bolstering our treasury.


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