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Bond Mechanism

What are BZOMB (Bonds)?

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

When can I buy BZOMB (Bonds)?

BZOMB can be purchased only on contraction periods, when TWAP of ZOMB is below 1.
Every new epoch on contraction periods, BZOMB are issued in the amount of 3% of current ZOMB circulating supply, with a max debt amount of 35%. This means that if bonds reach 35% of circulating supply of ZOMB, no more bonds will be issued.
Note: BZOMB TWAP (time-weighted average price) is based on ZOMB price TWAP from the previous epoch as it ends. This mean that ZOMB TWAP is real-time and BZOMB TWAP is not.

Where can I buy BZOMB (Bonds)?

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

Why should I buy BZOMB (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, more on that on DAO Fund section.
BZOMB don't have a expiration date, so you can view them as a investment on the protocol, because long term you get benefits from holding bonds.

Incentives for holding BZOMB

The idea is to reward BZOMB buyers for helping the protocol, while also protecting the protocol from being manipulated from big players.
So after you buy BZOMB using ZOMB, you get 2 possible ways to get your ZOMB back:
  1. 1.
    Sell back your BZOMB for ZOMB while peg is between 1 - 1.1 (1 FTM) with no redemption bonus. This to prevent instant dump after peg is recovered
  2. 2.
    Sell back your BZOMB for ZOMB while peg is above 1.1 (FTM) with a bonus redemption rate
The longer you hold, the more both the protocol and you benefit from BZOMB.
Example:
  1. 1.
    When ZOMB = 0.8, burn 1 ZOMB to get 1 BZOMB (BZOMB price = 0.8)
  2. 2.
    When ZOMB = 1.15, redeem 1 BZOMB to get 1.105 ZOMB (BZOMB price = 1.27)
So, which one is better?
If I buy ZOMB at 0.8, and hold it until 1.15 and then sell, I'm getting +0.35$ per ZOMB
But, if I buy ZOMB at 0.8, burn it for BZOMB, and redeem it at 1.15, I'm getting 1.105 ZOMB * 1.15 (ZOMB current price) = 1.271 (+0.47$) per BZOMB 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 ZOMB and BZOMB holders when needed.

When can I swap BZOMB for a bonus?

PBOND TWAP (time-weighted average price) is based on ZOMB price TWAP from the previous epoch as it ends. This mean that ZOMB TWAP is real-time and PBOND TWAP is not. In other words, you can redeem PBOND for a bonus when the previous epoch's TWAP > 1.1.