Educational

Discover Bundles Token ($BUN): Powering Bundles.fi

Barbat0x

15 Oct 2025 — 2 min read

What Is Bundles Token ($BUN)?

Bundles Token ($BUN) is an ERC-20 token central to bundles.fi’s DeFi ecosystem. It serves as the native utility token for bundles.fi, a decentralized platform where users create and invest in crypto indexes. With a fixed total supply, $BUN is deflationary and distributed solely amongst users—no external actors or centralized entities hold any portion of the supply. This ensures a fair and decentralized token model.

Why $BUN Stands Out in DeFi

$BUN’s design delivers three core advantages for DeFi investors.

1. Deflationary Mechanics Through Fee Burns

As a deflationary token, $BUN reduces its circulating supply by burning fees. These fees are generated from:

Rebalancing Fees: Crypto indexes rebalance periodically to maintain target asset weights, incurring fees paid in $BUN, with 15% burned.
Liquidity Pool Fees: Swaps in index pools incur a 1% fee paid in $BUN, with 15% burned per transaction. Increased market volatility accelerates rebalancing and swaps, intensifying $BUN burns and driving demand for the token.

Higher volatility drives more rebalancing and swaps, accelerating burns and demand for $BUN.

2. Mandatory 5% $BUN Allocation

Every crypto index on bundles.fi allocates 5% of its composition to $BUN. As platform liquidity grows (e.g., through increased investor participation), demand for $BUN rises to maintain this 5% allocation. This creates a virtuous cycle where higher liquidity drives additional $BUN purchases, supporting the token’s value.

Demand Driven by Liquidity and Volatility

$BUN’s value is tied to bundles.fi’s activity:

Liquidity Growth: More capital in crypto indexes and their pools increases $BUN demand.
Volatility: Market fluctuations trigger frequent rebalancing, raising $BUN fee payments and burns.
Swaps: Active trading in pools boosts $BUN usage, reducing supply and increasing demand.

This makes $BUN a compelling ERC-20 deflationary token for DeFi investors.