Understanding Bonds

Overview

Convergence’s bonding model is slightly different from Olympus’s one. Bonds will have a modulable vesting term, a maximum ROI, and a minimum ROI (fixed range). Bond prices will be calculated thanks to an ad-hoc on-chain oracle that gets bonded assets' prices over various AMMs.

Bonding rounds

Bonding rounds will be set to control the inflation resulting from bonds. A bonding round will last three months, and 2,000,000 CVG will be available to sell during that time. If all CVG are sold before the end of a given bonding round N, users will be able to bond again at the beginning of the bonding round N +1. The bond program is planned to last for approximately four and a half years and to sell a maximum amount of 40,000,000 CVG.

Bonding round distribution

Bonding round distribution (amount of CVG sold for each stablecoin or asset) will be set before the beginning of each bonding round. Multiple scenarios will be established for bonding round N + 1 at the beginning of bonding round N.

Elastic reserve

8,000,000 CVG will remain unplanned in the bond program as a strategic elastic reserve. This reserve will allow Convergence to deploy bonds anytime, preventing the protocol from being out of available bonds when CVG's price action is favorable.

Bonds flows

To summarize:

• A bonding round lasts 3 months (12 weeks) and sell a maximum amount of 2,000,000 CVG;

• The bond program is planned to last 4.6 years (240 weeks);

• The ROI will vary within a fixed range;

• Bonds prices are computed thanks to a custom on-chain oracle.