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Bonds Mechanism

What are BNOTE (Bonds)?

Bonds are unique tokens that can be utilized to help stabilize DNOTE price around peg (½ FTM) by reducing circulating supply of DNOTE if the TWAP (time-weighted-average-price) goes below peg (½ FTM).

When can I buy BNOTE (Bonds)?

BNOTE can be purchased only on contraction periods, when TWAP of DNOTE is below 1.
Every new epoch on contraction periods, BNOTEs are issued in the amount of 3% of current DNOTE circulating supply, with a max debt amount of 35%. This means that if bonds reach 35% of circulating supply of DNOTE, no more bonds will be issued.
Note: BNOTE TWAP (time-weighted average price) is based on DNOTE price TWAP from the previous epoch as it ends. This mean that DNOTE TWAP is real-time and BNOTE TWAP is not.

Where can I buy BNOTE (Bonds)?

You can buy BNOTE if any are available, through the Bond on deathnote.finance, anyone can buy as many BNOTEs as they want as long as they have enough DNOTE to pay for them.
There is a limit amount (3% of DNOTE current circulating supply) of available BNOTE per epoch while on contraction periods, and are sold as first come first serve.

Why should I buy BNOTE (Bonds)?

First and most important reason is Bonds help maintain the peg, but will not be the only measure use to keep the protocol on track, more on that on DAO Fund section.
BNOTE don't have a expiration date, so you can view them as a investment on the protocol, because long term you get benefits from holding bonds.

Incentives for holding TBOND

The idea is to reward BNOTE buyers for helping the protocol, while also protecting the protocol from being manipulated from big players.
So after you buy BNOTE using DNOTE, you get 2 possible ways to get your DNOTE back:
  1. 1.
    Sell back your BNOTE for DNOTE while peg is between 1 - 1.1 (1 FTM) with no redemption bonus. This to prevent instant dump after peg is recovered
  2. 2.
    Sell back your BNOTE for DNOTE while peg is above 1.1 (FTM) with a bonus redemption rate

When can I swap BNOTE for a bonus?

BNOTE TWAP (time-weighted average price) is based on DNOTE price TWAP from the previous epoch as it ends. This mean that DNOTE TWAP is real-time and BNOTE TWAP is not. In other words, you can redeem BNOTE for a bonus when the previous epoch's TWAP > 1.1.