🎗️Bonds Mechanism
What are HBOND (Bonds)?
Bonds are unique tokens that can be utilized to help stabilize HAUNTED price around peg (1 XDC) by reducing circulating supply of HAUNTED if the TWAP (time-weighted-average-price) goes below peg (1 XDC).
When can I buy HBOND (Bonds)?
HBOND can be purchased only on contraction periods, when TWAP of HAUNTED is below 1.
Every new epoch on contraction periods, HBONDs are issued in the amount of 3% of current HAUNTED circulating supply, with a max debt amount of 35%. This means that if bonds reach 35% of circulating supply of HAUNTED , no more bonds will be issued.
Note: HBOND TWAP (time-weighted average price) is based on HAUNTED price TWAP from the previous epoch as it ends. This mean that HAUNTED TWAP is real-time and HBOND TWAP is not.
Where can I buy HBOND (Bonds)?
As long as you have enough HAUNTED you can buy HBONDs if any are available, through the official website
There is a limit amount of available HBONDs per epoch, and they are sold on first come first serve basis.
Why should I buy HBOND (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.
HBONDs don't have a expiration date, so you can view them as a investment on the protocol, because longterm you get benefits from holding bonds.
Incentives for holding HBOND
The idea is to reward HBOND buyers for believing and helping the protocol, while also protecting the protocol from being manipulated from big players.
So after you buy HBOND using HAUNTED, you get 2 possible ways to get your HAUNTED back:
Sell back your HBOND for HAUNTED while peg is between 1 - 1 (1 XDC) with no redemption bonus. This to prevent instant dump after peg is recovered
Sell back your HBOND for HAUNTED while peg is above 1 (XDC) with a bonus redemption rate
The longer you hold, the more both the protocol and you benefit from Hbonds.
When can I swap HBOND for a bonus?
HBOND TWAP (time-weighted average price) is based on HAUNTED price TWAP from the previous epoch as it ends. This mean that HAUNTED TWAP is real-time and HBOND TWAP is not. In other words, you can redeem HBOND for a bonus when the previous epoch's TWAP > 1.1.
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