# Energy Bonds

Energy bonds in Lithium represent tokenized claims on locked mining rewards, backed by Proof-of-Work (PoW) mining output. Miners lock their coinbase rewards for predefined durations (e.g., 2 weeks, 3 months, 6 months, or 12 months), earning boosted yields of up to 25% APY depending on the lock duration.&#x20;

In return, they receive [Liquid Mining Tokens](/lithium-docs/lithium-protocol/publish-your-docs.md) (LMTs), which abstract the locked rewards into tradable assets. These LMTs can be sold in a secondary market, providing instant liquidity for miners while maintaining their claim on future yields.

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### **Benefits for Miners:**

* **Boosted Yields:** By locking rewards, miners earn significantly higher APY than typical emissions, maximizing their long-term profitability.
* **Liquidity Access:** LMTs enable miners to unlock liquidity immediately, allowing them to reinvest or cover operational costs without waiting for the lock period to end.

### **Benefits for Traders:**

* **Energy-Backed Assets:** Traders gain access to assets backed by PoW mining, offering a unique and stable yield opportunity.
* **Capital Efficiency:** LMTs can be used as collateral in DeFi, unlocking further financial opportunities.
* **Customizable Yields:** Through the RFQ mechanism, traders can match their desired yield and maturity preferences, ensuring tailored financial outcomes.

This model bridges the gap between miners and traders, creating a mutually beneficial ecosystem where miners access liquidity and traders tap into innovative energy-backed yield instruments.


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