💸Bonds
What are Bonds?
The bonds system is crucial for treasury growth and sustainability of the Redeem process. It allows users to mint new $NTR by buying $bNTR with underlying assets such as $NTR itself or $wETH for example. $bNTR are designed so they are cheaper than the current market price, incentivizing users to mint them. Neutron bond system allow you 2 strategies: 1. Stake your $bNTR and redeem at a special price while getting staking rewards. 2. Convert your $bNTR for $NTR and trade them on the market or stake them.
Why Bond?
Simply, it allows you to "buy" $NTR at a discounted price.
Because it allows you to buy $NTR at discounted price, Bonds will not be available at any time. These must be in a limited number,.
$bNTR will go on sale at certain times and only by a little part of the supply.
Let’s walk through a bond example.
1. When the price of $NTR is $500, and you have $1,000 USD. With that cash amount money, you are able to go and buy 2 $NTR from market.
2. For example, with bond you'll be able to buy $bNTR at 250$ which means 4 $bNTR for $1,000 USD.
3. Over the next 3 days, you can convert those $bNTR to $NTR or stake them and wait for a redeem.
Creating a Bond
Go to Neutron website and select the ‘Bond’ tab. The protocol will quote the NTR amount and a vesting period for the trade. You would need to have the asset ($wETH, $NTR...) in your wallet to purchase the bond.
Swap your $bNTR for $NTR
On Neutron website, select the ‘Bond’ tab, then click on the submenu ‘Convert'. The protocol will recall when you bonded and your vesting term. The convert option is vested for a period of 3 days after purchasing the bonds, a portion of your bag is convertible at each epoch during these 3 days.
Redeem Mechanism for $bNTR
$bNTR are eligible for Redeem using $bNTR staking.
Stake your $bNTR avoid deposit fees.
Chose between Real-Time Market Price OR Fixed Rate a. Fixed rate: Your $bNTR will be redeemable at a fixed rate b. Real-Time Market Price: Your $bNTR redeem value will be $NTR Market Price
Redeem is unlocked proportionally to your staking amount. Every epoch, around 3.57% of your deposit is available for a redeem.
Redeeming $bNTR avoid sell taxes and withdrawal fees.
Enhance Buy pressure and reduce Sell pressure.
Bonds and Redeem combination
The combination of bonds and redeem mechanism creates many different strategies while using Neutron. It's up to users to discover and find out which ones are the best!
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