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What is the relationship between Liquity and Chicken Bonds?

Liquity AG is the company that developed Liquity, the decentralized borrowing protocol.

LUSD Chicken Bonds is also being developed and deployed by Liquity AG.

The Liquity protocol is completely immutable, and the launch of Chicken Bonds products does not technically alter Liquity in any way.

LUSD Chicken Bonds is a separate smart contract system on Ethereum which utilizes Liquity’s stablecoin, LUSD, and provides an enhanced yield opportunity for LUSD holders.

While Liquity AG developed the Chicken Bonds Software, the Chicken Bonds Software runs in a fully decentralized and autonomous manner on the Ethereum network. Liquity AG is neither involved nor in any way responsible for the operation, running or functioning of the Chicken Bonds Software and/or any of the interactions, collaborations or factual relationships between Users and the smart contracts of the Chicken Bonds Software.

Liquity AG has neither access to nor any other possibility to control and/or influence the corresponding transactions, deposits and/or allocations made by the Users and the involved smart contracts using the Chicken Bonds Software. Liquity AG does not operate an own frontend, nor has it entered in any relationship with the frontend operators.

Liquity AG has only the possibility to update the SVG art for Chicken In and Chicken Out NFTs once. This will happen as soon as the art is finalized shortly after the deployment on mainnet. After this final step, Liquity has no control over the protocol and can’t change any parameters, NFT art and/or update any smart contracts.

For more information please see the protocol disclaimer on the Chicken Bonds website.

Will Liquity’s LQTY token accrue value from Chicken Bonds?

LQTY will not directly accrue value from LUSD Chicken Bonds - though an improved LUSD liquidity and peg should be broadly positive for the Liquity ecosystem.

What is the process for creating an LUSD Bond from your Gnosis Safe?

1. Approve Chicken Bonds to use your LUSD

• In Gnosis Safe, goto New transaction -> Contract interaction

• Input the LUSD contract address:

0x5f98805A4E8be255a32880FDeC7F6728C6568bA0

Choose the approve function from the dropdown list

• In the spender field, input the ChickenBondManager contract address: 0x57619FE9C539f890b19c61812226F9703ce37137

• In the amount field, input the amount with 18 zeros on the end. e.g. to approve 1234 LUSD, enter “1234000000000000000000”

• Submit, sign and execute the transaction in Gnosis Safe

2. Create a bond with your LUSD

• In Gnosis Safe, goto New transaction -> Contract interaction

• Input the ChickenBondManager contract address:

0x57619FE9C539f890b19c61812226F9703ce37137

• Choose the createBond function from the dropdown list

• In the _lusdAmount field, enter the amount with 18 zeros on the end, e.g. to bond 1234 LUSD, enter “1234000000000000000000"

• Submit, sign and execute the transaction in Gnosis Safe