When users mint ST tokens, they are actually selling a specific asset to buy ST bonds from the protocol. The agreement references the mint's transaction terms at a future date. These terms include the predetermined amount of ST that the mint will mint and when the vesting is done. Bonds become callable upon vesting.
Users cannot withdraw earnings during the 14-day period. Bonds are an active short-term strategy. The price discovery mechanism of the secondary bond market makes mint discounts more or less unpredictable. Therefore, minting is considered a more active investment strategy that must be constantly monitored in order to be more profitable compared to staking. Allowing users to buy bonds through Bond allows ST to continuously accumulate its own liquidity (LP). More LPs ensure that there is always locked exit liquidity in our trading pools to facilitate market functioning and protect token holders. As ST becomes its own market, in addition to providing additional certainty to ST investors, bondholders of the protocol receive more and more income.
Each bond cycle: 12:00 pm (UTC) every Friday to 12:00 pm (UTC) the next Friday
Bond Amount per Issue: 1 million LP
Each bond base rate: Dynamic interest rate - (real-time change according to total liquidity) / Fixed interest rate - manually configured according to TVL
Tax rate: 1% on a base basis, and an additional 0.1% tax on every $1,000 of bonds purchased thereafter, subject to a cap of 10%.