PCV - Protocol Controlled Value
Bond sales generate profit for the protocol, and the treasury uses the profit to mint NMS and distribute them to stakers. With liquidity bonds, the protocol is able to accumulate its own liquidity.
As the protocol controls the funds in its treasury, NMS can only be minted or burned by the protocol. This also guarantees that the protocol can always buy back NMS tokens with it's backed value. You can easily define the risk of your investment because you can be confident that the protocol will indefinitely buy NMS below its backed value in USD with the treasury assets until no one is left to sell. You can't trust the FED but you can trust the code โ€“ thatโ€™s what makes these protocols so powerful.
As the protocol accumulates more PCV, more runway is guaranteed for the stakers. This means the stakers can be confident that the current staking APY can be sustained for a longer term because more funds are available in the treasury.
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