Bonds

What are PBOND (Bonds)?

Bonds are unique tokens that can be utilized to help stabilize PIGGY price around peg (1 AVAX) by reducing circulating supply of PIGGY if the TWAP (time-weighted-average-price) goes below peg (1 AVAX).

When can I buy PBOND (Bonds)?

PBOND can be purchased only on contraction periods, when TWAP of PIGGY is below 1.

Every new epoch on contraction periods, PBONDs are issued in the amount of 3% of current PIGGY circulating supply, with a max debt amount of 35%. This means that if bonds reach 35% of circulating supply of PIGGY, no more bonds will be issued.

Note: PBOND TWAP (time-weighted average price) is based on PIGGY price TWAP from the previous epoch as it ends. This mean that PIGGY TWAP is real-time and PBOND TWAP is not.

Where can I buy PBOND (Bonds)?

You can buy PBONDs if any are available, through the Wolf Den on PiggyFinance, anyone can buy as many PBONDs as they want as long as they have enough PIGGY to pay for them.

There is a limit amount (3% of PIGGY current circulating supply) of available PBONDs per epoch while on contraction periods, and are sold as first come first serve.

Why should I buy PBOND (Bonds)?

First and most important reason is Bonds help maintain the peg, but will not be the only measure use to keep the protocol on track, more on that on DAO Fund section here.

PBONDs don't have a expiration date, so you can view them as a investment on the protocol, because longterm you get benefits from holding bonds.

Incentives for holding PBOND

The idea is to reward PBOND buyers for helping the protocol, while also protecting the protocol from being manipulated from big players.

So after you buy PBOND using PIGGY, you get 2 possible ways to get your PIGGY back:

1.

Sell back your PBOND for PIGGY while peg is between 1 - 1.1 (1 AVAX) with no redemption bonus. This to prevent instant dump after peg is recovered

2.

Sell back your PBOND for PIGGY while peg is above 1.1 (1 AVAX) with a bonus redemption rate

The longer you hold, the more both the protocol and you benefit from Tbonds.

Example:

1. When PIGGY = 0.8, burn 1 PIGGY to get 1 PBOND (PBOND price = 0.8)

2. When PIGGY = 1.15, redeem 1 PBOND to get 1.105 PIGGY (PBOND price = 1.27)

So, which one is better?

If I buy PIGGY at 0.8, and hold it until 1.15 and then sell, I'm getting +0.35$ per PIGGY

But, if I buy PIGGY at 0.8, burn it for PBOND, and redeem it at 1.15, I'm getting 1.105 PIGGY * 1.15 (PIGGY current price) = 1,271 (+0.47$) per PBOND redeemed.

But what if getting back to peg is taking too long ?

We are going to adjust our use cases, to have different behaviors on contraction and expansion periods to benefit PIGGY and PBOND holders when needed.

When can I swap PBOND for a bonus?

PBOND TWAP (time-weighted average price) is based on PIGGY price TWAP from the previous epoch as it ends. This mean that PIGGY TWAP is real-time and PBOND TWAP is not. In other words, you can redeem PBOND for a bonus when the previous epoch's TWAP > 1.1