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Bonds Guide
Optyn Bonds allow individuals to purchase tokens at a rate at a discount to the market rate.
Protocols can use this to to diversify their treasuries and income streams without significantly impacting the price of their token on exchanges.

What Are Bonds?

Bonds are an agreement where a buyer agrees to purchase an asset in exchange for another asset. To reduce the arbitrage opportunities the output asset is released to the buyer over a period of the bond agreement. The buyer then has to decide at what price they are prepared to buy the token given the risk that the price may reduce over the period that they are holding the agreement.

Bond Pricing Model

Bond prices don't rely on oracles or any external price reference. They use a dutch auction model where prices start high and reduce over time.
The front end uses external pricing information to show difference to the exchange prices.
Last modified 29d ago