Delirium

Delirium is where users can mint GBOND and ZBOND

The terminology below applies to both GBOND and ZBOND tokens

Bonds are unique tokens that can be utilized to help stabilize GRAVE price around peg (0.1 AVAX) by reducing the circulating supply of GRAVE if the TWAP (time-weighted-average-price) goes below peg (0.1 AVAX).

When can I buy (Bonds)?

GBOND can be purchased only on contraction periods when TWAP of GRAVE is below 1.

Every new epoch on contraction periods, GBOND are issued in the amount of 3% of the current GRAVE circulating supply, with a max debt amount of 35%. This means that if bonds reach 35% of the circulating supply of GRAVE, no more bonds will be issued.

Note: GBOND TWAP (time-weighted average price) is based on GRAVE price TWAP from the previous epoch as it ends. This means that GRAVE TWAP is real-time and GBOND TWAP is not.

Where can I buy GBOND (Bonds)?

You can buy GBOND if any are available, through

Delirium

. Anyone can buy as many GBOND as they want as long as they have enough GRAVE to pay for them.

There is a limit amount (3% of GRAVE current circulating supply) of available GBOND 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 that bonds help maintain the peg, but will not be the only measure used to keep the protocol on track, more on that in the DAO Fund section here.

GBOND don't have an expiration date, so you can view them as an investment in the protocol because long term 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 by big players.

So after you buy GBOND using GRAVE, you get 2 possible ways to get your GRAVE back:

1. 1.

   Sell back your GBOND for GRAVE while peg is between 1 - 1.1 (0.1 AVAX) with no redemption bonus. This is to prevent instant dump after peg is recovered

2. 2.

   Sell back your GBOND for GRAVE while peg is above 1.1 (0.1 AVAX) with a bonus redemption rate

The longer you hold, the more both the protocol and you benefit from GBOND.

1. 1.

   When GRAVE = 0.8, burn 1 GRAVE to get 0.1 GBOND (GBOND price = 0.8)

2. 2.

   When GRAVE = 1.15, redeem 0.1 GBOND to get 1.105 GRAVE (GBOND price = 1.27)

If I buy GRAVE at 0.8, and hold it until 1.15 and then sell, I'm getting +0.35$ per GRAVE

But, if I buy GRAVE at 0.8, burn it for GBOND , and redeem it at 1.15, I'm getting 1.105 GRAVE * 1.15 (GRAVE 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 GRAVE and GBOND holders when needed.

When can I swap GBOND for a bonus?

GBOND TWAP (time-weighted average price) is based on GRAVE price TWAP from the previous epoch as it ends. This means that GRAVE 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.