Weekly Bonzo Bytes

The Spaces covered Bonzo Finance’s latest updates, Hedera ecosystem news, and broader market topics, with Goran hosting and Brady co-hosting. They confirmed Season 4 points are live, Season 3 claims remain open, and explained the Season 3 token distribution via an adjusted regression curve designed to improve fairness as participation widened. The team announced Halborn-completed audits for Bonzo Vaults and targeted a late-September/early-October launch, detailing vault strategies (e.g., CLMM LP automation on SaucerSwap, leveraged HBARX staking loops) and associated DeFi risks. They previewed Bonzo’s AI integrations, building plugins for the Hedera Agent Kit so agents can execute on-chain actions like deposits and rebalancing. Stats showed Bonzo TVL up to ~$46.8M, Hedera TVL ~$132M, USDC on Hedera ~$149M, and HBAR at ~$0.24. Ecosystem news included Archex’s pool token launch (likely KYC-gated), LayerZero-based majors (WBTC/WETH) pending contract deployment/liquidity/oracles, HCS-14 for universal AI agent IDs, and SaucerSwap’s ERC20↔HTS wrapper audit completion. In Q&A, they addressed token listings (risk-guided, oracles/liquidity required), a Sybil-like attempt to game points, handling transfer-tax tokens (e.g., BSL 4% tax) and its liquidation math, and low risk from potential Aave competition on Hedera given first-mover/community dynamics.

Bonzo Bytes – Weekly Community Update (Twitter Spaces)

Session overview and format

• Hosts opened with a legal disclaimer: all views are personal, not financial advice; forward-looking statements involve risks; do your own research; neither Bonzo Finance nor speakers are liable for actions taken based on the space’s information.
• Structure: 1) Bonzo protocol updates, 2) Hedera/community news, 3) broader Web3/market news, followed by open Q&A.

Speakers and attribution

• Goran (Host; Speaker 1) – protocol updates, roadmap, ecosystem commentary, AI initiatives, stats.
• Brady (Co‑host; Speaker 2) – token distribution model, vaults architecture/risks, ecosystem bridges/oracles; competitive analysis.
• Co‑host (Speaker 3) – occasional comments and confirmations.
• Community members:
  • “Celestial Being” (Speaker 4) – vaults timeline, points‑gaming question, transfer‑tax token listing considerations.
  • “Echo Listings” (Speaker 5) – Aave-on-Hedera competitive risk.

Bonzo protocol updates

Seasons, claims, and token distribution fairness

• Season 4 has started; Season 3 ended. Season 3 points/token claims are open and will remain open for months, giving users ample time to claim.
• Brief technical hiccups on Season 3 claims (smart contract allowances/approvals and a Hedera Mirror Node SSL certificate issue) were resolved; claiming is now functioning.
• Distribution model for Season 3 (Brady):
  • Detailed blog post available at bonzo.finance/blog explains the “adjusted regression curve” used for Season 3 governance token distributions, compared against alternative curves and versus Season 1 (10M tokens) and Season 2 (8M tokens).
  • Rationale and evolution:
    • Early seasons were highly generous to smaller point earners to bootstrap engagement.
    • As the protocol matured and the contributor base broadened, a purely linear model would have over‑rewarded the top few accounts (especially in Season 1 where top 5 contributed an outsized share of TVL/borrowing).
    • Observed trend: the percentage of points held by the top accounts decreased over seasons; the adjusted regression curve improves fairness across a larger participant set while still rewarding outsized contributors appropriately.
  • Comparison: Camino Finance (Solana) has used a linear model with its own justification; Bonzo deliberately chose a different path to balance early growth incentives with long‑term fairness.
  • TL;DR from hosts: past and current models are not linear; Season 3’s curve is “more linear than before,” but still non‑linear by design to maintain fairness.
• Abuse mitigation: A Sybil‑like attempt (multiple accounts to game points) was detected; analysis and model adjustments factored this risk. Details and the “TL;DR” are in the blog.

Bonzo Lend vs. Bonzo Vaults: scope, status, and risks

• Bonzo Lend
  • An over‑collateralized lending/borrowing protocol adapted from Aave for Hedera (supports HTS, Hedera EVM assets, and soon bridged ERC‑20s via wrapped HBAR and other bridges).
• Bonzo Vaults
  • A separate protocol exposed in the Bonzo front end (its own nav section). Each vault is an automated liquidity engine executing a predefined strategy to maximize risk‑adjusted yield.
  • Example vault strategies:
    • SaucerSwap v2 CLMM LP management: auto‑provisioning and rebalancing liquidity for pairs like HBAR/USDC within optimal ranges, relieving users from complex monitoring and re‑ranges.
    • Leveraged liquid staking loop: deposit HBARx into Bonzo, borrow HBAR, stake to HBARx, resupply, compounding staking yield.
  • Open strategy development: third‑party developers can build/deploy strategies and receive incentives.
  • Security and audits: Halborn audit completed; announcement posted. Team is polishing UI and completing backend tests.
  • Target launch window: end of September to early October (safety takes precedence; minor slips possible to finalize testing and security checks).
  • Risk note (Goran/Brady):
    • Vaults involve smart contract and market risks (e.g., liquidation risk for leveraged strategies; CLMM range and impermanent loss dynamics; APY variability). Users should read the vault description, safety score, and risk notes before participating.

Bonzo x AI: agent integrations

• Goran ran a Bonzo workshop during the Hedera AI hackathon with Michael Cantor (Hashgraph Online) demonstrating AI‑driven protocol interactions.
• Bonzo is building plugins for the Hedera Agent Kit and conversational agents (e.g., desktop agents):
  • Users could instruct an agent to perform on‑chain actions like “deposit 100 USDC on Bonzo,” or “rebalance across Bonzo and SaucerSwap.”
  • Aim: make Bonzo vaults/lending usable by autonomous agents. Anyone can spin up an agent and leverage these integrations once released.

Key metrics snapshot (week‑over‑week)

• Bonzo TVL: $46.82M (up from ~$41M last week). In HBAR terms: ~194M HBAR (up from ~192M).
• Ecosystem rankings: Bonzo dropped from # 51 to # 61 among lending protocols (global), but remains # 3 on Hedera. SaucerSwap leads Hedera TVL at ~$82M; Bonzo at ~$46M.
• Hedera ecosystem TVL: ~$132M (up week‑over‑week).
• USDC issued on Hedera: ~$149M.
• HBAR price: ~$0.24 (up from ~$0.22 last week).

Hedera and community news

Archax pool tokens on Hedera

• Archax (UK’s first regulated digital asset exchange) launched “pool token” functionality on Hedera for on‑chain multi‑asset portfolios (equities, funds, debt, crypto) packaged into a single transferable token.
• First bundles include money market funds from Aberdeen, BlackRock, State Street, and Legal & General. CEO Graham Rodford called it “unprecedented flexibility” in on‑chain portfolio construction.
• Access model expectations (Brady/Goran):
  • Likely a walled garden with KYC/authorization (security‑token‑like), not open AMM trading on SaucerSwap initially.
  • Open question: how broadly these tokens will be usable across Hedera wallets (e.g., HashPack) vs. confined to Archax’s platform.

Cross‑chain majors, ERC‑20/HTS interop, and oracle needs

• LayerZero bridging: DAO governance at SaucerSwap passed to enable bridged BTC/WBTC/WETH. Awaiting LayerZero contract deployment; then liquidity seeding on SaucerSwap.
• Listing on Bonzo requires:
  • Adequate on‑chain liquidity (primarily on SaucerSwap),
  • Reliable price oracles (e.g., Chainlink/Supra),
  • Risk analysis and parameterization by Bonzo’s independent Risk Steward.
• SaucerSwap ERC‑20↔HTS wrapper: audit completed; critical to seamless interop as bridged majors arrive (many will be pure ERC‑20s rather than HTS initially). This is a key ecosystem building block before Bonzo onboarding.

HCS‑14: Universal Agent ID (AI + identity)

• New standard from the Hashgraph Online community: HCS‑14 defines a cryptographically verifiable, network‑agnostic Universal Agent ID for AI agents.
• It deterministically derives an Agent ID from six stable fields and is designed to wrap/align with W3C DIDs.
• Significance:
  • Addresses the need for portable, verifiable identity primitives for AI agents across chains/platforms.
  • SDK planned to be chain‑agnostic; opportunity for Hedera to lead standard‑setting in AI/Web3 identity, not just adopt EVM‑origin standards.

Market and policy

• Hosts reacted to recent US regulatory news with optimism, noting more constructive signals around crypto (e.g., chatter about blockchain‑based GDP data, “crypto framework” initiatives, involvement of data providers like Chainlink).
• Tone: cautiously optimistic about a friendlier regulatory posture and potential positive market tone into Q4, while acknowledging prior friction under the previous SEC stance.

Q&A highlights

Adding more tokens to Bonzo

• Yes; roadmap depends on the independent Risk Steward’s analyses and recommended parameter updates (to be published in change memos), plus ecosystem readiness:
  • Sufficient SaucerSwap liquidity for new assets,
  • Production‑grade price feeds (Chainlink/Supra),
  • Then safe enablement on Bonzo.
• Bridged majors remain priority; broader listings follow once prerequisites are satisfied.

Vaults launch timeline

• Targeting end of September to early October. Security and testing may push final GA by a few days if necessary; safety remains paramount.

Points gaming attempt (Sybil‑like)

• Community asked about Discord chatter regarding attempts to game points. Team confirmed detection of multi‑account behavior aimed at exploiting multipliers.
• Addressed via analysis and model adjustments; covered in the blog’s TL;DR.

Listing tokens with transfer taxes (example: BSL token with 4% transfer fee)

• User raised how Bonzo might handle tokens that levy transfer taxes (commonly 4%) except for certain wallet‑to‑wallet transfers within their own ecosystem wallet.
• Considerations discussed (Goran/Brady):
  • Smart contracts, not just user wallets, custody assets on Bonzo; compatibility and fee logic must be assessed.
  • Liquidations: transfer taxes reduce proceeds; liquidation bonus/discount parameters may require adjustment to preserve incentives and solvency for liquidators (e.g., if a 6% bonus nets only ~2% after a 4% tax, bots might avoid liquidations).
  • Broader protocol flows (repayments, collateral transfers) may all incur taxes, affecting UX and risk math.
  • Action: team to research technical patterns (e.g., how AMMs like SaucerSwap mechanically handle taxed tokens beyond UI disclaimers) and evaluate feasibility. Priority remains enabling bridged majors first, then considering special‑mechanic tokens.

If Aave integrates Hedera, how competitive is Bonzo?

• Brady/Goran: Low risk in the medium term.
  • Empirical pattern across chains: first movers with community and product fit tend to retain leading share when incumbents arrive later (example cited: Aerodrome vs. Uniswap on Base—Uniswap trails Aerodrome’s TVL despite brand).
  • Lending specifically shows even stronger first‑mover inertia; past analysis done during Bonzo’s grant process supports this.
  • Aave is selective; integrations often require substantial foundation funding and robust ROI. Given Hedera’s current scale, near‑term entry seems unlikely; even if it occurs, outsized incentives would be needed to displace Bonzo.

Key takeaways and action items

• Claims: Season 3 points/tokens remain claimable for months; recent claiming glitches are resolved.
• Distribution: Season 3 used an adjusted regression curve, not linear; fairness improved as the user base broadened. Read the blog for methodology, comparisons, and anti‑gaming context.
• Vaults: Halborn audit complete; launch targeting late Sep/early Oct. Review vault descriptions and safety scores; vaults carry market and smart contract risks.
• AI: Bonzo plugins for Hedera Agent Kit are in development; agent‑driven protocol actions are coming.
• Ecosystem readiness: ERC‑20↔HTS wrapper audit done; LayerZero bridges pending; oracles/liquidity are prerequisites to list bridged majors on Bonzo.
• Regulatory outlook: team is cautiously optimistic on improving US posture toward crypto heading into Q4.

Open questions to watch

• Archax pool tokens: Will they be usable across Hedera wallets and DeFi, or remain platform‑confined due to KYC/security‑token status?
• Oracles: Which providers (Chainlink, Supra) will deliver timely, robust feeds for incoming bridged majors, and on what timeline?
• Transfer‑tax tokens: Can Bonzo safely and economically support tokens with on‑transfer taxes (e.g., parameter tweaks for liquidation, contract compatibility)?

References

• Bonzo blog (Season 3 distribution, anti‑gaming TL;DR, charts): https://bonzo.finance/blog
• Halborn audit announcement for Bonzo Vaults (see Halborn post shared in the Space).