Bonds
For a better understanding of the following section, the reader is advised to read the bonding explanation at OlympusDAO.
In 2021, OlympusDAO introduced bonds and protocol-owned liquidity (POL) concepts. Convergence uses 30% of CVG total supply to sell bonds, incentivizing users to provide various assets while allowing the protocol to own its liquidity and build a treasury.
However, CVG is not a decentralized reserve currency. CVG does have a maximum supply, and its treasury will not serve any purpose of backing or risk-free value (RFV). As a result, Convergence’s treasury should not be considered as any form of guarantee for CVG’s price.
Last updated