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Through the use of bonds, users can mint new NMSP tokens at a discounted rate by exchanging them against liquidity tokens (LP tokens) or other stable assets. Bonds have different vesting terms over various time intervals, and they are accumulated in real time within these terms.
Liquidity bonds enable the protocol to accumulate and lock up liquidity, while stable bonding allows the protocol to expand its treasury holdings. Furthermore, Auction Bounding ensures the stabilization of the 90-day moving average determined with a Range-Bound Stabilizer.
Nemesis PRO bonds are an essential tool for the protocol that allows various tokens to be exchanged over a specified period of time at a price determined by the market. This means that the pricing of the tokens does not depend on any third parties.
Users who purchase bonds make a certain amount of deposit upfront in exchange for the potential to receive a predetermined return of NMSP upon maturity. The profitability of the Bond is unpredictable, as it is dependent on the market price of NMSP when it reaches maturity.
Bond payouts are determined by the bond's current discount rate. The bond is priced lower than the market rate when the discount rate is positive. Conversely, when the discount rate is negative, the bond is priced higher than the market rate. Therefore, the discount rate is a crucial factor when considering the potential return on a bond investment.
The variable discount rate of a bond market is a self-regulatory mechanism that adjusts supply in response to demand. This adaptive approach helps to ensure that the bond market maintains a steady supply over a predetermined period of time, providing an equitable distribution of bonds in the marketplace. Nemesis PRO offers 3 different types of bonds for different scenarios and approaches, which are Stable Bonds, Liquidity Bonds, and Auctioned Bonds.