Bonzo Finance AMA

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Bonzo Finance Labs
@bonzo_financeFeb 6, 2026

The Spaces is a Bonzo Finance AMA focused on vault mechanics, yield cadence, asset support, and user experience in the Hedera DeFi ecosystem. Brady (Bonzo Finance) explained differences between dual-asset and single-asset Dex vault strategies: dual-asset vaults rebalance and harvest every 4–6 hours, while single-asset vaults distribute yield less frequently (often 24–48+ hours) due to harvest costs and economics, encouraging a long-term, “set-and-forget” perspective. He detailed how HBAR–USDC dual-asset vaults maintain balanced ratios using a primary range around current price and an auxiliary range to hold excess tokens, with a backstop swap only in extreme, low-activity scenarios. The team clarified wrapped asset handling: users should use ERC-20 versions of wETH/wBTC from SaucerSwap/LayerZero and wallet visibility is being improved in HashPack. Gory noted that exiting a vault resets position performance history. Brady discussed the ongoing risk steward engagement (RE7) required before adding wBTC to Bonzo Lend, emphasized forthcoming education and guides, and provided cautious commentary on an external vault product (Bizzen/Biden Link). Finally, APY is displayed in token terms rather than USD, with both current and 30-day average metrics to help manage expectations.

Bonzo Finance AMA – Twitter Spaces Summary

Participants and Roles

  • Brady (Bonzo Finance): Primary responder, product and strategy overview (vault mechanics, APY interpretation, asset support roadmaps, ecosystem risk).
  • Randy: Moderator, posed community questions from X/Twitter and Discord.
  • Gory: Technical responder (UI/position tracking behavior, data and state aspects).
  • Community questioners referenced by name: Not Jack (Twitter), CryptoKing (Discord), Brock (Twitter). External educator: Handsome Brian (“Crypto School”).

Disclaimer and Context

  • Brady opened with a standard AMA disclaimer: opinions are personal, not official advice; forward-looking statements involve risk; users should do their own research and consult professionals; neither Bonzo Finance nor speakers are liable for actions taken based on the discussion.
  • Market chatter at the start noted HBAR price action (approaching $0.10), but the session focused on product mechanics and user questions.

Vault Yield Cadence: Why no yield for ~48 hours?

Brady explained vault mechanics and clarified differences between two strategies:

Dual-Asset DEX Vaults (e.g., HBAR/USDC)

  • Deposits require supplying both assets according to the current vault ratio.
  • The vault creates a primary position placed 50/50 around the current price in the underlying SaucerSwap V2 pool.
  • Rebalances and harvests occur frequently (typically every 4–6 hours), with more volatile pairs rebalanced more often.
  • Each harvest distributes accrued yield to users, so depositors see frequent increases in their vault positions.

Single-Asset DEX Vaults (e.g., DOVU single-asset strategy)

  • Mechanics differ from dual-asset: continuous proactive rebalancing is driven by market dynamics without a harvest rebalance pair-function cadence.
  • Yield distribution is less frequent due to on-chain transaction costs associated with harvest and distribution across all positions.
  • Observed distribution cadence ranges from under 24 hours to ~36 hours, and sometimes beyond 48 hours.
  • Economics matter: as vault TVL grows, harvest/distribution can be executed more often because the yield justifies the transaction costs.
  • Example: In the DOVU single-asset vault, when DOVU price rose, the vault’s token composition favored DOVU, enabling depositors to capture appreciation during the move.

How to view vaults

  • Vaults are best viewed as long-term, “set-and-forget” liquidity/yield tools, not to be checked hourly for instant returns.
  • Compare vault participation to manually managing a concentrated liquidity position in SaucerSwap V2 (range setting, ongoing maintenance, rebalancing). Vaults automate that operational complexity and aim for sustainable, real, activity-driven yield.
  • Brady will publish a more descriptive write-up in Discord to set expectations and clarify mechanics.

Ratio Behavior in HBAR/USDC Dual-Asset Vaults

Question: Will a dual-asset vault inevitably skew to one asset (HBAR vs. USDC) over time?

Core mechanics that maintain balance

  • Deposits: Users contribute both assets per the current vault ratio. The vault places a primary 50/50 position around the prevailing price.
  • Regular rebalancing/harvest (e.g., every ~4 hours for HBAR/USDC):
    • Liquidity is withdrawn and repositioned around the new price.
    • The vault maximizes the lesser-quantity token into the main position, matches it with an equivalent portion of the greater-quantity token, and places excess of the greater token into an alternative side position.
  • Ongoing user deposits/withdrawals contribute to maintaining an equivalent ratio in the vault, continually refreshing the main position near the current price where yield is earned.

Edge cases and mitigation

  • If price moves extremely fast and user activity is minimal, the vault could become one-sided over time.
  • Vaults minimize swaps (since swaps incur fees and reduce net liquidity), but a back-pocket function can be called to force a rebalance via a swap with minimal impact if the vault becomes dominantly one asset in early-stage, thin-liquidity, highly volatile conditions. If such an intervention is needed, Bonzo would communicate it.
  • Full mechanics and visuals are in Bonzo’s docs; additional Discord explanations will follow.

Wrapped Assets for Bonzo Lend and Wallet Visibility

Question: When converting HBAR to wrapped Ethereum on SaucerSwap, which wrapped token version is compatible with Bonzo Lend, and which contract address should be used?

Asset compatibility

  • Bonzo designed the UX so users can supply the ERC-20 versions of wrapped assets they receive from SaucerSwap and LayerZero/Stargate directly into Bonzo Lend and compatible vaults without manual re-wrapping.
  • Supported: ERC-20 wrapped Ethereum (WETH) and wrapped Bitcoin (WBTC) from LayerZero/Stargate.

Wallet display (HashPack)

  • Bonzo collaborated with HashPack (referred to as “hashtag wallet” during the call) to ensure ERC-20 assets and Bonzo LP/vault tokens display with icons and metadata.
  • HashPack’s next version will include these updates; timing estimated within 1–2 weeks from the AMA.
  • Docs provide exact contract addresses and wallet association instructions: see “ERC20 Token Display” at docs.bonzo.finance.
  • Bonzo is working with HashPack on an API/wallet function to auto-associate visible ERC-20 assets in users’ wallets during transaction flows once HashPack exposes that capability.

Position Data After Exit and Re-Enter

Question (to Gory): If a user fully exits a vault and later re-enters, does the earned position data reset?

Technical behavior and UI

  • Positions are tracked as stateful entries with start and exit events.
  • On exit, the position is closed; historical personal performance (entry composition, evolving ratios, yield accrued) anchors to that closed position.
  • Re-entering creates a new position with its own performance tracking; past personal position charts are not shown in the current UI (vault-level charts like TVL and vault APY remain available). The team may add historical personal views in the future.
  • In dual-asset contexts, exits may return a different token composition than deposits due to ongoing conversion/rebalancing during the holding period.

Wrapped Bitcoin Support in Bonzo Lend

Question: Will users be able to deposit wrapped Bitcoin (WBTC) directly in Bonzo Lend (not only via vaults)?

Status and risk stewardship

  • Bonzo is working to finalize a Risk Steward engagement with RE7. Ecosystem changes earlier in the year introduced added ownership and cost complexity, prolonging the timeline.
  • Broader DeFi risk across Hedera is a consideration, especially with more advanced products (perpetuals, futures, derivatives) coming online. The community is assessing holistic, ecosystem-level risk frameworks and sustainable support models.
  • Transparency is a priority; updates will be shared when available. The engagement is top-priority to enable Bonzo Lend’s continued growth.

Roadmap for assets

  • WBTC is the next asset targeted for addition to Bonzo Lend (modeled after current WETH support).
  • Benefits: Users could borrow WBTC and deploy it in Bonzo vaults that support WBTC (not financial advice).
  • Yield in Lend pools depends on supply/demand dynamics for the asset (pool utilization drives supply and borrow rates).

Guides and Tutorials for Bonzo Vaults and Lend

  • Video guides for Bonzo Lend are nearing release.
  • More consumable guides for Bonzo Vaults are planned, including a session with “Crypto School” (Handsome Brian), who previously hosted thorough Bonzo Lend walkthroughs (available on X and YouTube).
  • Education is a core value; Bonzo emphasizes enabling users to help other users across platforms (Discord, Reddit, SaucerSwap Discord, X), reinforcing knowledge-sharing and ecosystem growth.

Thoughts on “Bizzen Link” Vaults

Question (from Not Jack): Opinions on another team’s product (“Bizen/Bizzen Link” vaults)?

  • Brady has done preliminary exploration; the product appears early-stage with a single USDC vault issuing a “BCred” token and citing ~16% APY sourced from “Credible.”
  • Details of Credible’s underlying yield generation are unknown; yield performance updates appeared stale for a few days at the time of checking.
  • Brady plans to connect with their team for deeper understanding.
  • Broader perspective: It’s encouraging to see more Hedera DeFi products launching—likely an effect of the past 6–12 months of grant activity (rumored hundreds of grantees with milestone-based funding). More protocols and mechanics attract users who are increasingly network-agnostic and focused on opportunities, reinforcing a positive flywheel if liquidity, activity, and yield compound.

APY Infographic vs. Personal Vault Returns

Question (from CryptoKing): The top-10 vaults by APY infographic doesn’t seem to match individual returns.

How to interpret vault APY and returns

  • Vaults are long-term, sustainable yield products powered by real activity (DEX trading fees and/or lending interest), not short-term, supplemental token emissions.
  • APY fluctuates with market conditions and vault operations. Bonzo shows:
    • Current APY (more responsive, can move up/down frequently).
    • 30-day average APY (a smoother indicator), also visualized as a purple dashed line in each vault’s Overview.
  • Expect variability over short windows; align expectations with long-term participation and compare against manual management of SaucerSwap V2 concentrated liquidity positions.
  • Important risk caveats (emphasized by Gory and Brady): Smart contract risk, market risk, strategy-specific limits. Users can lose funds; always do your own research and never invest more than you’re willing to lose.

APY Denomination: Token vs. USD

Question (from Brock): Is APY calculated/displayed in the deposited token or in USD?

  • APY is expressed relative to token amounts, not USD, because token prices fluctuate.
  • Example: If you deposit $1,000 worth of HBAR at $0.08 and APY remains hypothetically 50% for a year, the APY reflects a 50% increase in HBAR units; the USD value of those units will depend on HBAR’s end-of-period price (e.g., $0.01 vs. $0.08 changes USD outcomes materially).
  • Nuance: Even single-asset vaults are paired in the underlying DEX pool, so there is exposure to the paired token. Some users prefer pairs that include a stable asset (e.g., USDC) to moderate USD-denominated volatility.
  • Brock confirmed the answer addressed his question.

Closing

  • Final acknowledgments from Randy, Brady, and Gory. Next spaces to follow; weekend well-wishes.