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Bonds Mechanism

What are $GBOND (Bonds)?

Bonds are unique tokens that can be utilized to help stabilize $GHOST price around peg (1 GHOST= 1 FTM) by reducing circulating supply of $GHOST the TWAP (time-weighted-average-price) goes below peg (1 GHOST= 1 FTM).

When can I buy $GBOND (Bonds)?

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

Where can I buy $GBOND (Bonds)?

You can buy $GBONDs if any are available, through ghostdefi.io, anyone can buy as many $GBONDs as they want as long as they have enough $GHOST to pay for them.
There is a limit amount (3% of $GHOST current circulating supply) of available $GBONDs per epoch while on contraction periods, and are sold as first come first serve.

Why should I buy $GBOND (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. We also have a DAO fund which will step in and buy $GHOST to get it back to peg.
$GBONDs 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 $GBOND

The idea is to reward $GBOND buyers for helping the protocol, while also protecting the protocol from being manipulated from big players.
So after you buy $GBOND using $GHOST, you get 2 possible ways to get your $GHOST back:
  1. 1.
    Sell back your $GBOND for $GHOST while peg is between 1 - 1.1 (1 GHOST= 1 FTM) with no redemption bonus. This to prevent instant dump after peg is recovered
  2. 2.
    Sell back your $GBOND for $GHOST while peg is above 1.1 (1 GHOST = 1FTM) with a bonus redemption rate
The longer you hold, the more both the protocol and you benefit from $GBOND.
Example:
  1. 1.
    When $GHOST= 0.8, burn 1 $GHOST to get 1 $GBOND($GBOND price = 0.8)
  2. 2.
    When $GHOST= 1.15, redeem 1 $GBOND to get 1.105 $GHOST($GBOND price = 1.27)
So, which one is better?
If I buy $GHOST at 0.8, and hold it until 1.15 and then sell, I'm getting +0.35$ per $GHOST
But, if I buy $GHOST at 0.8, burn it for $GBOND, and redeem it at 1.15, I'm getting 1.105 $GHOST* 1.15 ($GHOST current price) = 1,271 (+0.47$) per $GBOND redeemed.
But what if getting back to peg is taking too long ?
We are going to adjust our use cases, to have different behaviors on contraction and expansion periods to benefit $GHOST and $GBOND holders when needed.

When can I swap $GBOND for a bonus?

$GBOND TWAP (time-weighted average price) is based on $GHOST price TWAP from the previous epoch as it ends. This mean that $GHOST TWAP is real-time and $GBOND TWAP is not. In other words, you can redeem $GBOND for a bonus when the previous epoch's TWAP > 1.1.
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Outline
What are $GBOND (Bonds)?
When can I buy $GBOND (Bonds)?
Where can I buy $GBOND (Bonds)?
Why should I buy $GBOND (Bonds)?
When can I swap $GBOND for a bonus?