Mainnet Reflections: A Deep Dive into Our SPO Bonds and Their Impact on Cardano DeFi

Optim Labs
5 min readJun 16


Mainnet Reflections


In December, we at Optim Finance made our first significant contribution to the Cardano DeFi ecosystem with the launch of our innovative SPO Bonds. As early builders in the space, our team faced the formidable task of creating a unique and innovative dApp to transform a traditional financial concept into a novel offering within the world of DeFi. In this article, we take an in-depth look at our development process, accomplishments, and the future prospects of our SPO Bonds.

Breaking New Ground in Cardano DeFi.

Our journey to develop and launch Optim Finance’s SPO Bonds was filled with challenges. We aimed to create a product that would stand out in the Cardano ecosystem and provide real value to its users. To achieve this goal, we had to navigate several obstacles, including:

  1. Rigorous security measures: We prioritized the safety of users’ funds and the integrity of our platform. This involved multiple layers of security, including multiple thorough internal checks, double audits and the implementation of best practices to safeguard our smart contracts and platform infrastructure.
  2. Innovative UX/UI design: We wanted to provide a seamless and user-friendly experience for both new and experienced DeFi enthusiasts. Our design team focused on creating an intuitive interface that would allow users to easily navigate and interact with our SPO Bonds platform.
  3. Unique smart contracts: We ventured into uncharted territory by creating smart contracts that enabled the renting of validator/pool stake rights, a concept that had not been previously explored in the crypto world. Our developers had to research, design, and test these smart contracts to ensure their functionality and security.

Despite the lack of a template or existing model to follow, our determination to bring new innovations to Cardano and push DeFi forward led us to overcome these challenges and successfully launch the SPO Bonds.

SPO Bonds: Bridging the Gap between Traditional Finance and DeFi

We designed the SPO Bonds to convert a common financial concept — ADA staking & bonds — into a unique offering within the Cardano DeFi ecosystem. By allowing users to rent validator/pool stake rights, the SPO Bonds provided a new financial instrument for Stake Pool Operators (SPOs) to access liquidity and grow their operations and the liquidity providers to get 2x their staking APY while also contributing to the decentralization of the network.

This innovative approach aimed to bridge the gap between traditional finance and DeFi, making it more accessible and familiar to a wider audience. Since its launch, our SPO Bonds have had a significant impact on the Cardano ecosystem:

  1. Supporting SPOs: We have helped numerous SPOs by providing them with a new financial instrument to access liquidity and grow their operations. This has allowed them to generate enough runway to expand their infrastructure, improve their services, and attract more delegators.
  2. Better APY for LPs: Current average staking return on Cardano is ~3.2% per annum. SPO bonds on Optim Finance give 5.33%. That’s 66.5% more, and if the SPO whose bonds you’ve bought defaults in the middle, you’ll get 6 epochs’ worth of pre-paid rewards as compensation.
  3. Decentralization: This has always been the core of our SPO bonds. In the past few months, Cardano’s Nakamoto Coefficient has decreased dramatically, which means Cardano’s becoming more centralized. What’s more? Hundreds of Stake Pools have retired. Our SPO bonds, by reducing the barriers of entry from starting a Stake Pool Operation, have contributed to the decentralization of Cardano.
  4. Growing TVL: Over 10 million $ADA in Total Value Locked (TVL) has been achieved, demonstrating the value and demand for SPO Bonds within the Cardano DeFi landscape. This growth has been instrumental in attracting more users and increasing the visibility of the Cardano DeFi ecosystem.
  5. Expanding the Cardano DeFi landscape: Our SPO Bonds have contributed to the diversification of financial products available within the Cardano ecosystem, paving the way for further innovation and growth within the DeFi space.

Continuous Improvement and Expansion

Our team at Optim Finance is dedicated to continuously improving the SPO Bonds and expanding their reach within the Cardano ecosystem. Recent developments include:

  • Shortening the duration of the SPO Bonds, making them more accessible and attractive to a wider range of users.
  • Enhancing liquidity in secondary markets, ensuring that users can easily trade and access their SPO Bonds.
  • Collaborating with the Danogo Protocol, which is built on top of our offering, to further extend the utility and influence of SPO Bonds in the market. With this, our users can buy / sell their bonds when they want.

The Future…

As we continue to push the boundaries of Cardano DeFi, our team is exploring new product line extensions to further enhance the utility and reach of SPO Bonds. By leveraging our expertise in smart contract implementation, we are well-positioned to introduce new innovations that will shape the future of DeFi on Cardano.

In response to the evolving needs of the DeFi space, we are researching and developing new financial products that will complement and build upon our existing SPO Bonds. Our ISPO and IBO bonds are also ready to be launched in a couple of months. This will provide our users with a more comprehensive suite of DeFi tools and services within the Cardano ecosystem. Furthermore, we plan to collaborate with other DeFi projects and protocols in the Cardano ecosystem to create synergies and unlock new possibilities for our users. This will enable us to provide a more interconnected and seamless DeFi experience on the Cardano blockchain.

Believing in the importance of a strong and engaged community for the success of any DeFi project, we will continue to actively engage with our users and the broader Cardano community through various channels, including social media, forums, and events. As we continue to evolve, the future looks bright for both Optim Finance and the Cardano ecosystem as a whole.

Ready to join the revolution? Stay connected with us by following us on Twitter, joining our Discord community, and subscribing to our Medium for the latest updates, announcements, and opportunities to get involved.

Let’s shape the future of DeFi on Cardano together!