Bonds
What are Bonds?
The Bonds system in Guardian is pivotal for the growth and sustainability of the treasury and the Redeem process. It permits users to mint new $GUARD by purchasing $bGUARD with assets such as $GUARD or $wS, for instance. $bGUARD are priced below the current market value, providing an incentive for users to mint them.
Why Bonds?
Simply put, it allows you to acquire $GUARD at a reduced price. Due to the attractiveness of buying at a discount, Bonds are offered only in limited quantities and during specific periods.
Bond Example Walkthrough
Suppose $GUARD is priced at $500, and you have $1,000 USD. Normally, this would let you buy 2 $GUARD from the market.
With a bond, you might buy $bGUARD at $250 each, meaning you could obtain 4 $bGUARD for $1,000 USD.
Over the following three days, these $bGUARD can be converted back to $GUARD or staked while you wait for a redemption opportunity.
How to Bond
Navigate to the Guardian website and select the ‘Bonds’ tab. The protocol will detail the $GUARD amount and the vesting period for the transaction. Ensure you have the required asset ($wS, $GUARD , etc.) in your wallet to complete the bond.
Swap your $bGUARD for $GUARD
On the Guardian website, click on the ‘Bonds’ tab, then choose ‘Convert’. The protocol tracks your original bonding and the vesting term. The convert option becomes available for a period of 5 days post-purchase, with a portion of your holdings convertible at each epoch during these days.
Redemption Mechanism for $bGUARD
$bGUARD are eligible to redeem through 'Staking' feature. Choose between redeem at the Real-Time Market Price or a Fixed Rate:
Fixed Rate: Redeem your $bGUARD at a predetermined rate.
Real-Time Market Price: Redeem your $bGUARD based on the $GUARD market price at the time of the redeem.
Redemption feature unlocks proportionally to your staked amount, with about 3.57% of your deposit available to redeem each epoch. Redeeming $bGUARD helps avoid sell taxes and withdrawal fees, enhancing buying pressure and reducing selling pressure.
Bonds and Redemption Combination
The integration of Bonds and the Redemption mechanism in Guardian provides numerous strategic options. It's up to the users to explore and determine the most beneficial strategies!
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