What is Bonding?

Bonding is the secondary means of value generation. It allows $BBY to acquire its own liquidity and other reserve assets such as USDC, SOL, RAY and COPE by selling at a discount in exchange for these assets. The protocol presents the bonder with terms such as the bond price, the amount of BBY tokens entitled to the bonder, and the vesting term (of ten béru, which translates to five days). The bonder might be able to claim some of the rewards (tokens) as they vest, and at the end of the vesting term, the full amount will be claimable.
Bonding is an active, typically short-term strategy. The price discovery mechanism of the secondary bond market renders bond discounts more or less unpredictable. Therefore bonding is considered a more active investment strategy that has to be monitored constantly in order to be more profitable as compared to staking.
Bonding also allows Babylon to accumulate its own liquidity.
They're some interesting things to add about bonding in Babylon;
When depositing in Babylon, the higher the value of the bonding item used the bigger the discount. Essentially, the best deals go to those that bond more.
At launch, the max bonding per Fren would be 0.1% of supply and if someone maxes the amount of BBY available to them a discount of 5% will be given.

For true Babylonians: