Users can purchase bonds when the price is below the target price and when there is enough redeemable amount.
Price stability is very important, especially when the price is below the target price. We make sure to reward those who join early with better rewards and offers than late joiners. On purchase of every bond, the actor gives away his VuFi tokens and they are removed from circulation by the burning process.
Once the price is back to the target price or above, actors can sell bonds themselves or via the staking pool where they will be sold automatically.
On every redemption, users will get an additional premium.
The approach to premium allocation on the system follows a bonding curve approach, via the intersection of two curves:
Debt based premium (
Time based premium (
Both curves (
) are defined by the standard bonding curve formula:
are parameters that can be changed via governance.
is the modeled variable (time or debt respectively)
The premium for the specific bonding restricted within a range of [0%;100%], and defined as follows:
The final premium is then defined as the product of the two curves
Below we will show examples of both premium curves and their intersections:
Debt curve. Obtained with parameters: a=1, N=3:
Time curve. Obtained with parameters: a=0.2, N=17/100:
Final premium. The final premium is then defined by both price and time.
Below is a hypothetical scenario based on both time and price: