# Benefits and FAQ
What are YeetBonds?
* YeetBonds are sales of a token at a discount to market price
* Big holders can sell tokens without having to swap them via the liquidity pool, avoiding slippage and price impact
* Bonds have a discount to the market price of the token. If there is no discount, buyers would buy from a DEX/CEX
* Tokens purchased via a bond have a short unlock period to avoid people instantly arbitraging the price
Why would I use YeetBonds?
* If you are a protocol treasury, you can use bonds to:
* Raise more cash (stablecoins, or $BERA) after your token is live without crashing the price of your own token
* Acquire LP tokens of your $TOKEN/$BERA pool, allowing you to own the liquidity in your own pool
* This allows you to reduce the inflation of your token over the medium and long term (because you can reduce the amount you pay for bribes and/or liquidity mining)
* Acquire strategic assets and diversify your treasury
* Decentralize the holdings of your token supply
* Acquire metagovernance tokens such as $BERO or $iRED
* Benefits are explained further in [this article](https://mirror.xyz/yeetit.eth/Q1LL6MhkY9HFKnOOHoBhfgXPjGv2OFy-GwXdkPfFP1E)
* If you are a whale/founder/big holder/investor:
* It can be difficult to exit positions, which is why big holders usually look for OTC (Over The Counter) deals, where tokens are exchanged p2p and not via secondary markets
* Bonds can be considered a form of permissionless OTC. You can issue a bond, and a greater range of buyers can participate
* If you are a buyer
* To acquire tokens at a discount to the current market price (after a short lock-up period)
Why are YeetBonds important?
* It gives protocols a useful and accessible way of raising more cash post TGE
* Allows protocols to diversify treasury without having to sell tokens in the liquidity pool or on a CEX
* Allows aligned stakeholders and community members to purchase tokens at a market discount
* It enables protocols to build up **Protocol Owned Liquidity**
* This is extremely important in helping reduce the emissions of a protocol’s token in the long term. Usually protocols pay out bribes or liquidity mining incentives to LPs continuously to maintain pool liquidity. These rewards usually get sold by farmers.
* If a protocol owns its own liquidity, it does not need to pay rent to mercenary LPs
* Protocols also earn trading fees by owning the liquidity in their pool
* Berachain protocols can farm $BGT, which gives them power in the Berachain gauges and creates another source of revenue from bribes others make to $BGT holders
Practical guidelines for deployers
* Runway: recommended for protocol treasuries to have 6-12 months of runway in stables
* Owning liquidity: healthy liquidity is usually when 60-80% of pool is owned by the protocol, and pool TVL is 10-20% of the token marketcap
* Metagovernance: $iRED or $BERO can help get leveraged bribing power for liquidity incentives
* Should I use a static or dynamic discount on my YeetBond?
* Use static if you need to sell the tokens quickly
* Use dynamic if there is no urgency, and this derisks exposure to market fluctuations in token being sold
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