Weekly Bonzo Bytes 🎙️🐵

The Spaces covered a packed Hedera and Bonzo Finance update led by Brady, with host Remley and guests including Brian (Crypto School). After a disclaimer, Brady recapped recent educational interviews and a Hedera community call, highlighting vaults targeted for late September/early October. A key segment detailed SaucerSwap Labs’ security memo on wrapped HBAR (WHBAR): retail users on Bonzo and SaucerSwap are safe and generally don’t hold WHBAR, but should revoke any unexpected WHBAR allowances; developers and liquidation-bot operators must follow the memo and call a helper contract. Brady announced Season 4 of the Bonzo Points Program (starting after Season 3 ends on Sept 3, 2025, per the call) and plans to include vaults in points, with tokenomics adjustments forthcoming. Stats showed slight TVL declines and HBAR strength. The Dead Pixels Club’s surge and its Forever Mint model were analyzed as a Hedera-enabled NFT business model innovation. Industry news touched on SWIFT’s real-world trials (with Hedera involvement) and RWAs like tokenized gold. In Q&A, Brady discussed LP tokens as collateral (not yet), points calibration, RWA collateral paths via Swarm Markets, NFT collateral conditions, and asset listing governance via an independent risk steward (RE7), oracles, liquidity thresholds, and a temporary listing pause.

Bonzo Finance Twitter Spaces Recap

Participants and roles

• Brady (Bonzo Finance) — host; provided updates, roadmap, risk/security guidance, and answered Q&A
• Randy/Remley (co-host/moderator) — ran the agenda, shared stats, and facilitated Q&A
• Brian (Crypto School) — guest/educator; previously recorded a deep-dive with Brady; asked vaults/points/RWA questions
• Mei Chan (HashPack) — referenced (Hedera community call host)
• Wolf Bitcoin — referenced (host of “Hedera DeFi is unlocked in 2025” space)
• SaucerSwap Labs — referenced (published WHBAR security memo and developer best practices)
• HR Hub — community member; asked about NFT collateral
• Jordan (handle “Lenny”) — community member/project founder; asked about asset listing requirements

Context and content published this week

• Brady did multiple appearances: a video interview with Brian (Crypto School) covering Bonzo lending mechanics; Hedera community call hosted by Mei Chan; “Hedera DeFi is unlocked in 2025” space hosted by Wolf Bitcoin (good outreach beyond the Hedera-native audience). Vaults remain the No.1 build focus (target: end of September to early October).
• Disclaimer reiterated: views are personal, not financial advice; forward-looking statements carry risk; do your own research.

Security update: SaucerSwap Wrapped HBAR (WHBAR) guidance

• TL;DR for retail users: funds are safe; continue using Bonzo and SaucerSwap as usual; no action required in normal circumstances.
• Why retail is usually unaffected: on Hedera, frontends handle wrapping/unwrapping behind the scenes; retail users generally don’t hold WHBAR directly.
• Edge case for retail: if you somehow hold the SaucerSwap-issued WHBAR directly, revoke any open allowances for that token in HashPack (hamburger menu → Allowances). This is good security hygiene in general (similar to using revoke.cash on EVM chains).
• Risk model rationale: open allowances allow a dApp to spend from your account; if a dApp is misconfigured or exploited, those funds could be moved without a new signature. Revoking unused allowances reduces that risk.
• Developers and liquidation bot operators: read SaucerSwap Labs’ memo and follow the best practices. Key point: call the designated helper contract rather than calling the WHBAR contract directly when interacting with WHBAR.
• References: Bonzo posted a clear announcement in its Discord (Announcements) linking/echoing SaucerSwap’s guidance. Devs/bot operators should review and conform.

Product roadmap and incentives

• Vaults timeline: aiming for end of September to early October launch. Priority remains shipping vaults.
• Points Season 4: Bonzo will extend the Season Points Program to Season 4 after Season 3 ends on September 3, 2025. Details to follow.
  • Program goals: use points (logged on Hedera for auditability) to broadly distribute governance tokens and align long-term incentives without distorting markets the way direct liquidity incentives can (e.g., looping, maxed borrow/supply caps on lower-liquidity assets).
  • Vaults in points: the team intends to include vaults in Season 4 points. The exact mechanics (weights/multipliers) are being designed to avoid draining collateral from the core lending markets.
  • Tokenomics: the Foundation will adjust tokenomics allocations/unlocks to support Season 4 distributions; details will be published transparently.

Governance and risk management

• Independent risk steward: re7 has been onboarded to perform risk analysis and author change memos (published in Bonzo docs and Message Center). These memos calibrate risk parameters (LTV, liquidation thresholds, caps, etc.), maintain USDC as a top-priority market, and will recommend asset additions/removals.
• DAO alignment: change memos mirror the upcoming DAO proposal format; community governance is targeted by end of year/early next year.

Market snapshot (at time of space; may have moved intra-day)

• Bonzo TVL: $49.6M (down from $53M). In HBAR terms: ~196M HBAR.
• Bonzo rank among all lending protocols: No. 51.
• Hedera protocol ranks: SaucerSwap ~No. 2 with $79.8M TVL (down from $87M); Bonzo ~No. 3.
• Hedera network TVL: $133M (down from $145M).
• HBAR price: ~$0.249 at doc time, ~$0.252 during the space.
• USDC on Hedera: ~$70M outstanding (down from ~$92.7M).

Ecosystem highlight: Dead Pixels Club “Forever Mint” model

• Performance: ~1.6M HBAR in daily trading volume; top-5 globally across all chains this week; floor up ~140% MoM; at one point ranked No.1 by 24h volume (beating CryptoPunks, Pudgy Penguins, etc.).
• Forever Mint mechanism:
  • Royalty revenue is used to buy back Dead Pixels NFTs on secondary.
  • The team packages those NFTs into uniform “card packs.” Buyers pay a fixed price and receive a random NFT from the buyback pool (ranging from lower to very high rarity) using Hedera’s RNG.
  • Key benefits: sustainable revenue without diluting the collection; delightful, pack-opening UX; incentives aligned with holders.
• Why Hedera enables this:
  • Protocol-level royalties that wallets/dApps must honor (a unique enabler for buyback funding).
  • Native RNG for transparent, on-chain randomness when revealing packs.
• Expected industry impact: likely broader adoption (on Hedera and beyond) of Forever Mint-style models. Brady framed it as a potential “Polymarket moment” for Hedera—i.e., a breakout, model-defining innovation.

Institutional and industry news

• Swift trials: moving from controlled tests to real-world implementations with banks across North America, Europe, and Asia; enabling digital wallets for settlement, tokenized cash, and blockchain-like payment rails. Swift appeared at Hederacon discussing Hedera pilots. Ripple is also mentioned in the mix. Anticipated go-live in the fall (November). If Hedera’s role persists, it could be a major catalyst for payments/stablecoin adoption.
• Tokenized gold on Aave: Aave now supports PAXG-style tokens (1 token = 1 ounce of vaulted gold), enabling lending/borrowing with tokenized gold collateral.
• RWAs on Hedera:
  • Hedera Foundation announced Swarm Markets bringing tokenized equities on-chain.
  • “Carat” (Diamond Standard) exists today on Hedera, but liquidity and volumes are currently thin (hence not listed on Bonzo yet).
  • Design preferences: permissionless RWAs that DeFi protocols and users can move/use like crypto assets.
  • Market precedent: on Solana, Kamino supports collateralizing tokenized equities (via “X stocks”) to borrow USDC. Typically, you can’t borrow the RWA asset itself due to regulatory constraints; instead, you borrow stablecoins against it. Liquidation bots handling such collateral would be KYC/KYB-compliant; users interact with the issuer (e.g., Swarm) to redeem underlying equities if eligible.
  • UX outlook: expect simplified, mainstream-friendly apps to abstract blockchain plumbing, akin to Robinhood/Wealthfront UX.

Q&A highlights

• Can vault LP/receipt tokens be used as collateral on Bonzo? (Brian)

  • Today: no, not initially at vault launch.
  • Future: possible but still nascent in DeFi and complex. Needs robust oracle pricing for LP/vault tokens; introduces manipulation risks and integration overhead. Potentially enables new products (e.g., trading yield-bearing LP tokens, collateralized LP borrowing), but must be risk-managed and sequenced carefully.

• Will vaults earn Season 4 points, and could that cannibalize lending collateral? (Brian)

  • Intention: include vaults in Season 4 points to drive adoption.
  • Risk noted: incentives shape user behavior; overweighting vault points could reduce lending market collateral. The team will tune multipliers to balance both (current baseline in lending points: ~8 points per $ borrowed per 24h; ~2 points per $ supplied per 24h).

• Will Bonzo support tokenized equities (e.g., via Swarm) as collateral? (Brian)

  • Actively exploring; cannot promise timelines.
  • Likely feasible in a “collateral-only” model (no permissionless trading), with KYC/KYB liquidation flows. If implemented early, it would be a strong first-mover advantage for Bonzo and Hedera.

• NFT collateral on Bonzo (e.g., Dead Pixels NFTs)? (HR Hub)

  • Not near-term under the current Aave-style architecture (optimized for fungible ERC-20/HTS tokens).
  • NFT credit markets need deep trading volume and relatively stable floor pricing to be defensible. If multiple Hedera NFT projects reach Dead Pixels’ scale and consistency, Bonzo could consider a separate NFT lending architecture.
  • Long-term, NFTs representing real-world property or identities could be viable collateral, likely with KYC and tailored controls.

• Requirements to list a new asset on Bonzo (Jordan/Lenny)

  • Process owner: independent risk steward re7 recommends additions and parameter changes via public change memos (aligned with future DAO voting).
  • Typical requirements (so far):
    • Liquidity: generally >$500k of reliable secondary liquidity.
    • Trading volume: sufficient ongoing volume to support robust pricing and liquidations.
    • Oracle support: decentralized price feeds (Supra or Chainlink). Oracles aggregate from multiple sources (DEX pools like SaucerSwap and, ideally, centralized exchanges) to reduce manipulation risk.
  • Current state: brief pause on new listings while markets are tuned to a secure baseline; additions resume thereafter.
  • Submission: use the asset listing request form on bonzo.finance (footer). The team will route to re7 and follow up publicly via memos/announcements.
  • Risk principle: in lending, the riskiest listed asset can influence systemic risk. Unlike DEX pools, lending market assets are interdependent; thin-liquidity/high-volatility assets can raise overall protocol risk.

Calls to action and next steps

• Security
  • Retail users: you’re safe to continue using Bonzo/SaucerSwap normally. If you directly hold SaucerSwap WHBAR, revoke allowances in HashPack as a best practice.
  • Developers/bot operators: follow SaucerSwap’s WHBAR memo and use the helper contract. See Bonzo’s Discord announcement for the most succinct guidance.
• Product and incentives
  • Vaults: target end of September/early October for initial vaults.
  • Points Season 4: begins after Season 3 ends on September 3, 2025; mechanics and tokenomics allocation updates forthcoming. Expect vault inclusion.
• Governance and listings
  • Watch for re7 change memos in Bonzo docs/Message Center.
  • Projects seeking listings: submit the form on bonzo.finance and continue building liquidity/volume and oracle readiness.
• Community
  • Join the Bonzo Finance Discord (bonzo.finance/discord) for announcements, support, and the community “wortle” game.

Key takeaways

• Retail users are not impacted by the WHBAR memo; devs/bots must adopt a new helper-contract pattern.
• Season 4 points are coming, likely with vault integration; tokenomics will be updated to support distributions.
• Vaults remain the immediate build priority; careful incentive tuning will protect lending depth while driving vault adoption.
• Hedera ecosystem momentum is visible (Dead Pixels’ Forever Mint as a standout innovation; Swift trials moving to real-world pilots; RWA traction). Bonzo is positioning risk-first with a dedicated risk steward, DAO-aligned governance, and a methodical asset listing process.