F&Q

Q: How does Bound finance aim for mainstream adoption ?

A: Bound Finance is targeting mainstream adoption by providing an accessible and rewarding financial solution. With our web app (and soon-to-be-released iOS and Android versions), users can link any existing debit or credit card and earn a substantial 15% cashback on almost all purchases. This includes typically non-qualifying transactions like rent, utility bills, and car payments. Significantly, these benefits are extended with no requirement for token staking or service subscription from the cashback app user.

Furthermore, users can stack rewards, earning cashback from both their card providers, like Amex, and Bound Finance simultaneously. This model is designed to incentivise mainstream users by leveraging the yield generated from LSDfi loans taken out by crypto enthusiasts. The aim is to not only make crypto more accessible to everyday users but also stimulate the crypto community to engage more with our services. We encourage users interested in understanding our model more deeply to review our white paper.

Q: How can I mint BCK with Bound Finance ?

A: Minting or borrowing $BCK involves depositing $eUSD or other yield bearing LSDFi Stablecoins like Raft's R. This deposited amount then serves as collateral, allowing you to mint BCK at the protocol set collateral ratio, default its 1:1.

Q: How does the Cashback app work ?

A: Bound Finance's Cashback app operates on a "daily allowance" model, initially set at $30, which rolls over any unused allowances. Users receive cashback rewards in fiat U.S. dollars, ranging between 10-15% per transaction, which can be withdrawn to a user's wallet after a 14-day buffer period to account for potential returns or refunds. The app is compatible with all credit and debit cards and works in conjunction with existing credit card rewards programs. It integrates with the Plaid API for transaction tracking and dynamically adjusts cashback allowances and rates based on LSDFi stablecoin / yield bearing assets rewards/yield. Users can accumulate daily allowances for more significant purchases. This not only enables users to buy higher-priced items or services with cashback where they originally couldn't with other alternatives, but it also allows the protocol to earn enough yield

Q: Does Bound Finance charge any fees ?

A: No, Bound Finance does not impose any fees for minting or borrowing.

Q: How is the cashback calculated ?

A: Bound Finance operates on a unique spending limit model where users' daily spending allowance grows by a set amount, for instance, $50 each day. This allowance accumulates indefinitely, so if a user abstains from spending for a week, their limit reaches $350. Upon making a purchase, the cost is subtracted from this accumulated limit, and users receive a default cashback of 12%. The daily rate which spending limit increases by in the cashback app is determined through the following formula: