Bond

Sale of DADASH via a sequential dutch auction

What is a bond?

A bond is a mechanism in which a User can sell an asset (i.e. Quote Token) in the bond market (for an existing Quote & Base pair created by an Issuer) to a protocol in exchange for discounted Payout Token at a future date.

Bonds are offered at a discounted rate to incentivize users to sell to the protocol rather than the open market. Bonds also have a vesting period to prevent users from selling all the discounted tokens at once for a quick profit. A continuous Dutch auction is used to price the bonds and is dynamic, determined by the supply and demand of bonds. It trends higher when there is more demand and vice-versa i.e. lower in the absence of demand. This mechanism provides a real-time true reflection of the bond price in the market.

As a result, bonding is also a very competitive space - bonders/ market participants compete with each other to grab the largest discount.

Bond allocation

We have allocated a total of 2,000,000 DADASH to be offered in bonds. The governance committee will determine, based on market conditions, when is the best time to launch bonds and the type of bonds to offer.