Overview

The Bonds contract implements a flexible bonding mechanism inspired by Olympus DAO's Bond Depository and Bond Protocol. It allows users to deposit quote tokens in exchange for vesting payout tokens, with configurable terms and dynamic pricing.

Core Concepts

Bonds

A bond represents a promise to pay out tokens over time in exchange for deposited tokens. Key characteristics:

• Quote Token: The token being deposited by users

• Payout Token: The token being distributed to users over time

• Vesting Period: Duration over which tokens are released

• Price: Dynamically calculated based on control variables and market conditions

The goal as a user is to buy bonds at a profitable discount. This helps protocols to increase treasury holdings or POL (Protocol Owned Liquidity) in exchange for their eco-system token.

Auctioneers

Auctioneers are whitelisted users (usually protocols) allowed to create new bond markets for a small fee of the quote tokens requested.