Bonzo Finance AMA - November

@bonzo_financeNov 7, 2025

The Spaces focused on Bonzo’s upcoming Vaults launch, audit learnings, strategy design, feature roadmap, fiat on/off-ramps, and global growth plans. Brady explained a recently discovered Vaults bug: it only manifested when harvesting was halted for an extended period during testing; Halborn didn’t catch it because it wouldn’t appear under normal operations. The fix is in, and additional stress tests under “no-intervention” conditions revealed no further issues. Vaults will auto-compound rewards at harvest, and three initial strategies will launch: single-asset DEX liquidity management on SaucerSwap v2, dual-asset liquidity management, and an automated leveraged HBAR/HBARX liquid-staking loop integrated with Bonzo Lend. The team prioritized Vaults over recent months as a full protocol launch, with supported pools to be announced and community developers encouraged to contribute strategies. A highly requested feature—repaying loans directly with collateral—is slated post-Vaults as part of revenue-supporting quality-of-life updates. Bonzo is researching USDC on-ramps/off-ramps (e.g., ChangeNOW) and welcomes suggestions. For global expansion, Bonzo Lend targets institutional users—already a major liquidity driver—while Vaults broaden retail appeal and deepen secondary DEX liquidity to raise Lend caps. Longer term, Bonzo envisions cross-chain UX enabling one-click deposits from any network via LayerZero/Axelar. Garang returns next week; watch Bonzo’s X account for Vaults updates.

Bonzo Finance Monthly AMA – Summary

Participants and Roles

Brady (Bonzo team; primary respondent)
Ranley (host/moderator; reads questions and facilitates)
Mentioned: Garang (Bonzo team; expected back next week to address technical questions)

Standard Disclaimer (as read at the start)

Opinions shared are personal and do not represent official Bonzo Finance advice.
Forward-looking statements involve risks and uncertainties; do your own research and consult professionals before making investment decisions.
Bonzo Finance and speakers are not liable for actions taken based on information shared in the space.

Bonzo Vaults: Delay, Audit Context, and Fix

Context of delay: A bug was found in one of the vault strategies during internal testing when the “harvest” process was intentionally stopped for an extended period (Cron jobs paused). Under normal operations, harvests occur regularly.
Why the auditor (Halborn) didn’t catch it: The issue only surfaced under a non-standard condition where no harvesting/reward distribution/rebalancing occurred for a long duration. Under normal operating assumptions (regular harvests), the issue wouldn’t arise.
Mechanism recap:
- Vaults rely on function calls (notably “harvest”) either by the deployer or ecosystem operators.
- Harvesting rebalances liquidity, realizes and distributes fees, and is incentive-driven (similar to liquidation bot incentives) to keep the function running regularly.
Resolution and verification: The bug has been fixed. Bonzo re-tested under a worst-case “no-intervention” scenario (no harvesting) and found no further issues beyond the one already remediated.

Rewards Handling: Auto-Compounding and User Experience

Vault rewards auto-compound; there is no manual claiming.
Distribution model: Rewards are distributed as increased vault shares during each harvest. Users will see their yield graphs move in “steps” that correspond to harvest events. Harvest cadence can vary (e.g., tens of minutes to hours) based on operational considerations.

Vault Strategies at Launch (High-Level Overview)

General note: Detailed strategy write-ups are available in Bonzo’s blog; the team will share the link on X (Twitter). Supported SaucerSwap v2 pools and assets will be announced soon.
Strategy 1: Single-Asset DEX Liquidity Management
- User deposits a single token (e.g., HBAR, JAM, BONZO) into a vault.
- The vault provides liquidity on SaucerSwap v2 by converting a portion into the paired asset and concentrating liquidity to maximize fees while minimizing manual upkeep.
- On withdrawal, the position is unwound from the pool and returned to the user.
Strategy 2: Dual-Asset DEX Liquidity Management
- User deposits both sides of a pool (e.g., USDC + HBAR) into the vault.
- Employs a distinct rebalancing/concentration approach versus single-asset vaults.
- Yields can differ (more or less optimal) depending on pool dynamics and assets.
Strategy 3: Leveraged Liquid Staking Token (LST) Looping
- Focused on HBAR and HBARX.
- Automates a common DeFi loop: supply HBARX to Bonzo Lend, borrow HBAR, stake it for HBARX, re-supply, and manage the position; unwind on withdrawal.
- Goal: Offer streamlined access to a complex strategy that users have been manually executing in the ecosystem.

Roadmap and Feature Requests: Repay with Collateral

Heavily requested feature: Repay loans directly using collateral.
Status: Prioritized, but the team’s bandwidth has been dedicated to launching Vaults, which represent a full protocol effort (akin to a standalone yield/vault protocol, similar in category to Beefy Finance) and a revenue driver.
Post-Vaults focus: Quality-of-life features that both improve user experience and support protocol revenue/economic sustainability.
- Example cited: HashPack wallet’s in-wallet swap (approx. 0.7% fee) shows users do pay for convenience; similar optional features can sustain protocol economics.
Summary: Repay-with-collateral remains a priority to be addressed after Vaults launch.

On-/Off-Ramps and Potential Integrations

Question: Could Hedera + HashPack support a USD→cash off-ramp (e.g., Stellar/MoneyGram-like), and a cash→USDC on-ramp that auto-routes into a Bonzo vault?
Current exploration: Bonzo is evaluating providers (e.g., ChangeNOW) for USDC on-ramps and bank off-ramps.
Open call for input: Community suggestions for preferred providers (low fees, good UX, unique features) are welcome.
Ecosystem context: Existing Hedera partnerships in this category may simplify integration.

Global Expansion, Target Markets, and Product Strategy

Target audience by product:
- Bonzo Lend (decentralized lending): Historically and industry-wide, major liquidity is driven by institutions rather than retail. Hedera mirrors this trend for Bonzo Lend.
  - Observed institutional use cases on Hedera:
    - Arbitrage: Borrowing to arbitrage price discrepancies across venues for assets they supply.
    - Yield deployment: Significant USDC deposits, among others.
  - Hedera’s differentiators for institutions: No MEV, low slippage, high throughput/speeds, low fees. As RWAs and regulated institutions expand into DeFi (especially given US regulatory clarity for certain activities), Bonzo expects institutional adoption to grow and contribute substantial liquidity.
- Bonzo Vaults: Designed to serve retail and broaden accessibility while also benefiting the lending protocol.
  - No hard caps on liquidity; supports a wide range of ecosystem assets via SaucerSwap v2 pools.
  - Strategic benefit: Vaults route dormant liquidity into DEX pools, increasing secondary liquidity. This strengthens risk parameters for Bonzo Lend (enabling higher caps/limits on assets that were previously constrained by low liquidity), making Lend more useful for everyone.
Cross-chain and global accessibility vision:
- Beyond simple bridging into Hedera, Bonzo is exploring cross-chain workflow automation leveraging modern messaging/bridging infrastructure (e.g., LayerZero, Axelar).
- Long-term goal: Allow users on many networks to deposit into Bonzo (Lend/Vaults) in one or two clicks without manual bridging/swap steps—assets could be routed and deposited into Bonzo on Hedera automatically.
- Outcome: Reduce cross-chain friction and make Bonzo feel “network-agnostic” for supported assets and chains.

Announcements and Next Steps

Vaults launch: Imminent, with more info, assets, and teasers to be shared on Bonzo’s X account. Supported pools/assets will be announced soon.
Team update: Garang returns next week to help field technical questions.
Schedule: Normal Bonzo Bites space resumes next Friday.