What Is a Common Treasury Management Strategy Involving Bonding or Token Swaps?

Bonding, popularized by protocols like OlympusDAO, involves the protocol selling its native token at a discount in exchange for other assets, typically stablecoins or blue-chip tokens. This directly diversifies the treasury by acquiring non-native assets while simultaneously providing liquidity for the native token.

It is a proactive way to convert volatile native assets into stable, usable capital.