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Sunder Protocol provides decentralized vault services with fungible tokens on both Ethereum and Binance Smart Chain. It allows the market to set coverage prices as opposed to using bonding curves. The process starts when market makers (MMs) deposit collateral to split tokens. Market makers will receive two types of fungible DAO tokens and Earning tokens in exchange for their deposit. Market makers can choose to sell the fungible tokens to earn premiums, or provide liquidity in DEX pools with the fungible tokens and earn fees. Governance seekers can then buy the DAO tokens to vote. Yield seekers can buy earning tokens to earn profit. The long term vision for Sunder Protocol is to allow any user to extract the value of governance tokens through Sunder Protocol so that participating in governance proposals and earning the yield on that particular token can be done simultaneously.

Sunder Protocol is an interesting protocol that aims to dissociate the governance and the yield generation value of protocol tokens. The solution is still in its earliest stage, with the recent release of their testnet version. The team is small yet showing a reasonable activity in the public repositories of the project. Because of how early the project is, we will need to wait a bit to see the product being used on mainnet and to offer a real added value to the market. Sunder, the governance token associated to the protocol, is already trading on decentralized exchanges (Sushiswap).