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  • Bonzo Bytes Newsletter - #46 🐵🗞️

Bonzo Bytes Newsletter - #46 🐵🗞️

👕 Bonzo Merch Store now live!

October 28, 2025

BONZO BYTES WEEKLY NEWSLETTER

Hello, Bonzo Community!

Welcome to another edition of the Bonzo Bytes Weekly Newsletter.

Listen to the full 𝕏 Space recording: October 24 Bonzo Bytes Space

CoinGecko / CoinMarketCap Pricing

Hedera HTS prices on CoinGecko and CoinMarketCap have been inaccurate. After a Hedera codebase change, the way these sites ingest on-chain data appears to have broken for multiple assets across the network.

“The de facto source of truth price for assets across the Hedera ecosystem is going to be SaucerSwap,” Brady Gentile said. He added that Bonzo’s price feeds are unaffected: “The protocol itself is not impacted… we source from Supra and Chainlink, which pull SaucerSwap on-chain data.”

Bonzo Finance Merch Store Is Live

The Bonzo Merch Store is officially live! It’s built on Shopify and shipping worldwide.

Three collections are now available:

  • Founders Collection: classic Bonzo logo designs

  • NFT Collection: apparel featuring artwork from the Bonzo Finance NFT collection

  • Vaults Collection: in honor of the Bonzo Vaults launching very soon, with custom graphics

Bonzo Vaults Update

Bonzo Vaults are entering the final stretch before launch. The smart contracts are deployed to mainnet, the UI has been fully integrated, and internal testing is ongoing.

Three strategies will be available at launch:

CLM (Concentrated Liquidity Management)

This strategy utilizes SaucerSwap v2 concentrated liquidity pools, focusing on optimizing yield from trading fees. CLM (Concentrated Liquidity Manager) allows users to access the higher yields of concentrated liquidity without the complexity of manual position management.

This vault strategy allows users to supply any supported token pair into the vault, then deploys them into two complementary positions:

  • A main 50/50 position that captures trading fees across a moderate price range.

  • An "alt" single-sided position that keeps excess tokens (from natural pool imbalances) actively earning within a smaller strategic range.

This dual-position approach enables depositors to earn maximum trading fees by keeping 100% of capital deployed and in range, effectively boosting yield compared to traditional liquidity provision.

The economic risk associated with this strategy focuses on impermanent loss resulting from price movements between the token pair, particularly during periods of high volatility that can push positions out of range. However, mitigations are in place, including automated 6-hour range resets, calm-zone deposit protection against price manipulation, and the alt position design that avoids realizing impermanent loss through token rebalancing.

Single-Sided Concentrated Liquidity Management

This strategy utilizes SaucerSwap v2 concentrated liquidity pools, focusing on optimizing yield through single-token deposits and inventory-based rebalancing. This strategy allows users to access concentrated liquidity yields without the complexity of managing dual-token positions or frequent rebalancing.

This vault strategy enables users to deposit any supported single token of their choice into the vault, then deploys user funds into concentrated liquidity positions while tracking inventory ratios, rather than reacting to every price movement. The strategy maintains directional exposure to the deposited token by avoiding over-selling, only rebalancing when inventory deviates significantly from target ratios. This approach enables depositors to earn higher trading fees while maintaining preferred token exposure, effectively boosting yield compared to traditional dual-token liquidity supply.

The economic risk associated with this strategy is centered on impermanent loss during periods of extreme volatility, which could push the strategy into unfavorable rebalancing or cause positions to move out of range. However, mitigations are in place, including 100% on-chain smart contract logic without privileged controllers, automated inventory-based triggers that prevent unnecessary swaps, and dynamic range adjustments during high-volatility periods that can lock the vault for safety when needed.

2x Leveraged Liquid Staking Yield

This strategy utilizes the Bonzo Lend protocol in conjunction with protocols which issue liquid staking tokens. This strategy automates “lending loops” between a base asset and its yield-bearing liquid staking token. For example, HBARX is issued by Stader Labs and is a liquid staking token for the base asset HBAR.

This vault strategy allows users to supply the HBARX liquid staking token into the vault for automated management. The vault strategy supplies the HBARX asset to Bonzo Finance as collateral, borrows HBAR against a portion of its value, stakes the borrowed HBAR for HBARX, and again supplies that HBARX to Bonzo. This strategy enables depositors to earn a bonus yield on HBARX by holding more of it (on leverage) than the original deposit, effectively increasing the HBARX APY.

The economic risk associated with this strategy is focused on the borrow APY of $HBAR being higher than the earnings APY on $HBARX, resulting in negative yield; however, mitigations are in place to prevent the ability for more $HBARX to be supplied to the strategy if the borrow APY for $HBAR exceeds this threshold.

“The goal is to create automated yield strategies that stay native to Hedera, while keeping full transparency for users,” Brady explained.

The launch date remains flexible but close. “We’re still targeting late October — end of the month — but if something shows up in testing that needs work, we’ll take an extra day or two. Security always comes first.”

Vaults will expand Bonzo’s role in Hedera DeFi by deepening liquidity and introducing institutional-grade yield mechanics. “Vaults are the next major product milestone for Bonzo. They connect directly to lending and to the liquidity layer — everything compounds from there,” Brady said.

Read more in the Bonzo Finance Blog post: Bonzo Vaults: Automated Yield Strategies for Hedera DeFi

Bonzo Proposes A “Win-Win” Adjustment

Bonzo Finance Labs has opened a Request for Comment (RFC) on SaucerSwap’s governance forum addressing how new $HBAR native staking rewards, now targeting 2.5% APY, could be shared between Bonzo and SaucerSwap.

Currently, Bonzo users have deposited about $11.5M in HBAR, which is wrapped into wHBAR using SaucerSwap’s contract. Those pooled HBAR deposits contribute to SaucerSwap’s daily $SAUCE buybacks via staking rewards. The proposal suggests attributing Bonzo’s proportional share of those staking rewards back to the Bonzo ecosystem, either through $BONZO buybacks (to support $xBONZO emissions) or allocation to a Bonzo protocol-owned account for governance-directed use.

The discussion aims to create a win-win alignment between Bonzo Finance and SaucerSwap, ensuring rewards generated from Bonzo-sourced $HBAR benefit both communities.

Bonzo Finance TVL & Scoreboard Update

Track Bonzo Finance on DeFiLlama: defillama.com/protocol/bonzo-finance

Hedera Foundation funds 0.0.800

The Hedera Foundation has added 250 million $HBAR to the 0.0.800 staking account, underscoring its commitment to expanding both institutional and retail participation across the Hedera ecosystem.

Users can now access staking through HashPack and Kabila.

Hedera Network Stays Online During AWS Outage

When a widespread AWS Cloud outage disrupted major blockchain networks this week, Hedera stood out for its uninterrupted performance. While Ethereum and several other chains experienced downtime due to heavy reliance on AWS infrastructure, Hedera maintained full operational capacity throughout the incident.

The network’s resilience comes from its diversified node hosting and governance structure. Hedera’s consensus nodes are operated by global organizations across multiple regions and hosting providers, including Microsoft Azure, Google Cloud, IBM Cloud, and several on-premise deployments. This decentralized approach minimizes single points of failure and ensures consistent uptime even when major providers go offline.

Hedera’s Asynchronous Byzantine Fault Tolerance (ABFT) model further strengthens reliability, allowing the network to reach consensus quickly and securely under adverse conditions. The contrast with Ethereum’s infrastructure, where nearly 28% of nodes are hosted on AWS, underscores the importance of geographic and provider diversity in network design.

The outage has renewed institutional interest in Hedera as a stable and enterprise-ready alternative.

Trump Pardons Convicted Binance Founder ‘CZ’ Zhao

President Donald Trump has issued a full pardon for Changpeng “CZ” Zhao, the founder and former CEO of Binance, less than a year after Zhao’s conviction on charges related to anti-money laundering violations. The decision has sparked strong reactions across the crypto industry, with some praising it as a symbolic gesture of support for blockchain innovation, while others criticize it as undermining regulatory accountability.

Aave Labs Acqui-Hires Stable Finance Team to Build Consumer DeFi Apps

Aave Labs, the team behind the largest decentralized lending protocol, has acquired Stable Finance, a San Francisco startup known for its user-friendly savings app. The move highlights continued consolidation across DeFi and stablecoin markets.

Stable Finance reportedly attracted $38 billion in deposits by simplifying access to decentralized yields. Founder Mario Baxter Cabrera joins Aave as Director of Product, with the team now developing new consumer apps within Aave’s ecosystem.

Aave’s technology underpins much of the DeFi lending landscape, including Bonzo Finance, which is built on Aave v2, making this acquisition a notable step toward expanding onchain finance for everyday users.

DeFi Lending Masterclass: Bonzo Finance CEO Explains the APY Engine and How it Works

Bonzo Finance CEO, Brady Gentile, joins @Crypto4RestofUs to break down APY mechanics, risk factors, and how lenders and borrowers can strategically position for maximum returns.

Why More Enterprises Could Adopt Hedera (HBAR) Over Ethereum

A deep dive from CaptainAltcoin exploring why enterprise adoption may increasingly favor Hedera for its energy efficiency, predictable fees, and strong governance structure compared to Ethereum.

🎙️ Weekly Bonzo Bytes 𝕏 Space

Tune in on Friday, October 31st, for Bonzo Finance updates and ecosystem news.

Thank you for being part of Bonzo Finance and the Hedera DeFi 2.0 journey.

- The Bonzo Finance Team

The views shared in this newsletter are personal opinions and do not represent official Bonzo Finance advice. Any forward-looking statements about Bonzo Finance and its associated projects involve risks and uncertainties. Please do your own research and consult a professional before making any investment decisions. Bonzo Finance is not liable for any actions taken based on the information provided.