Author: 71sim12

[REDACTED] bonding mechanism allows users to bond specific tokens (currently CRV, CVX and BTRFLY-OHM LP) in return for discounted BTRFLY. These tokens grow our treasury through the profits generated, maintaining a sustainable APY and rewarding xBTRFLY stakers.

https://lh3.googleusercontent.com/kkVrIE9aoq45hPQ1vg9HOdLqwbiIRDZyNrWfLJ9oajam1CLfBzfz0fazj5SCswSKWLC_GEF9r9amcQ23FCWJMgceyrvvEsGt0CWmAO7G9lyCdxUV-shYvlOCE0MqoOqQn-8vlEzaFA

Example at a certain point in time - Prices and Premium/Discounts (ROI) are constantly evolving and this snapshot is NOT representative of the current situation

The bond price of each asset is constantly evolving, decreasing over time. If people bond more and there is high demand, discount reduces or turns into a premium, making it more convenient to buy on the market.

Ok ser cartel, but why?

The bonding price mechanism is set up to control inflation and sustainably reward stakers through an optimal APY. In fact, while new $BTRFLY are minted from bond profits, influencing APY and token inflation, the control mechanism incentivises bonding for certain specific assets when needed, while de-incentivises bonding of other assets when risks related to rising inflation become unsustainable.