Bonds (50% of Emissions) - Example Redemption Weightings
Singular and Multi-asset Bond utilization is one of the core areas that will drive growth to the platform. Here, users can sell multiple liquidity pairs to the protocol and, in return, receive dynamically discounted platform tokens which vest ratably over a 7-14 day period chosen by the depositor.
50% of all emissions will be diverted to the bonding portion of the platform. These tokens will be distributed per the block rate — rather than minted during the purchase cycle. As such, inflation is partially mitigated because tokens will matched to TVL. Given the finite distribution for this section, this will promote significant and rapid TVL growth, which subsequently allows for stable long-term developments. In addition, this POL model (Protocol Owned Liquidity) will help create a price floor for ISA that will add additional stability mechanisms to our stable coin and help mitigate wild price swings. This bonding process will also increase volume through our swap, which will incur the 0.3% fee, thus generating additional revenue for the platform, further backing ISA, the Treasury, and providing additional liquidity to back assets and derivatives. By prioritizing Protocol Owned Liquidity and giving the platform token ISA a use case that continually degrades the supply, we are locking in growth that will, in turn, provide ample yields in the future while also ensuring a robust and stable Treasury - which in turn can bridge the Traditional Finance to Crypto Gap.
In the future, there is the potential to expand the Treasury beyond just crypto and traditional market assets through the inclusion of other physical assets. However, more details will be released as we progress through 2023.