BOND MECHANISM

WHAT ARE ABONDS (Bonds)?

Bonds are unique tokens that can be utilized to help stabilize ANT price around peg (1,000 ANT = 1 ETH) by reducing circulating supply of ANT if the TWAP (time-weighted-average-price) goes below peg (1,000 ANT = 1 ETH).

WHEN CAN I BUY ABONDS (Bonds)?

ABOND can be purchased only on contraction periods, when TWAP of ANT's below 1. Every new epoch on contraction periods, ABONDs are issued in the amount of 3% of current ANT circulating supply, with a max debt amount of 45%. This means that if bonds reach 45% of circulating supply of ANT, no more bonds will be issued. Note: ABOND TWAP (time-weighted average price) is based on ANT price TWAP from the previous epoch as it ends. This mean that ANT TWAP is real-time and ABOND TWAP is not.

WHERE CAN I BUY ABONDS (Bonds)?

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

WHY SHOULD I BUY ABONDS (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 ANT to get it back to peg. ABONDs 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 ABOND The idea is to reward ABOND buyers for helping the protocol, while also protecting the protocol from being manipulated from big players. So after you buy ABOND using ANT, you get 2 possible ways to get your ANT back: Sell back your ABOND for ANT while peg is between 1 - 1.1 (4,000 ETH = 1 WETH) with no redemption bonus. This to prevent instant dump after peg is recovered Sell back your ABOND for ANT while peg is above 1.1 (4,000ANT = 1WETH) with a bonus redemption rate The longer you hold, the more both the protocol and you benefit from ABOND. Example: When ANT = 0.8, burn 1 ANT to get 1 ABOND (ABOND price = 0.8) When ANT = 1.15, redeem 1 ABOND to get 1.105 ANT (ABOND price = 1.27) So, which one is better? If I buy ANT at 0.8, and hold it until 1.15 and then sell, I'm getting +0.35$ per ANT But, if I buy ANT at 0.8, burn it for ABOND, and redeem it at 1.15, I'm getting 1.105 ANT * 1.15 (ANT current price) = 1,271 (+0.47$) per ABOND 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 ANT and ABOND holders when needed.

WHEN CAN I SWAP ABOND FOR A BONUS? ABOND TWAP (time-weighted average price) is based on ANT price TWAP from the previous epoch as it ends. This mean that ANT TWAP is real-time and ABOND TWAP is not. In other words, you can redeem ABOND for a bonus when the previous epoch's TWAP > 1.1.