# 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.

<figure><img src="/files/nPF3pY2QFpgreQGyh6rI" alt="" width="563"><figcaption><p>Bonds flows</p></figcaption></figure>

{% hint style="info" %}
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.
  {% endhint %}


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