BGOLD - Gold Bonds

0x13481aDB400711ee1A62dEdf3597e930e6F0f12E

GOLD Bond's (BGOLD) main job is to help incentivize changes in GOLD supply during an epoch contraction period. When the TWAP (Time Weighted Average Price) of GOLD falls below 1:1 FTM, BGOLDs are issued and can be bought with GOLD at the current price. Exchanging GOLD for BGOLD burns GOLD tokens, taking them out of circulation (deflation) and helping to get the price back up to peg.

These BGOLD can be redeemed for GOLD when the price is above peg in the future, plus an extra incentive for the longer they are held above peg. This amounts to inflation and sell pressure for GOLD when it is above peg, helping to push it back toward 1 GOLD to 1 FTM ratio. Contrary to early algorithmic protocols, BGOLD do not have expiration dates. If your GOLD is below peg exchange it for BGOLD and redeem after peg is above 1.1 to receive bonus GOLD! All holders are able to redeem their BGOLD for GOLD tokens as long as the Treasury has a positive GOLD balance, which typically happens when the protocol is in epoch expansion periods.

"When can I swap $GOLD for $BGOLD?"

$BGOLD will only become available in the BONDS following epochs in which the Time Weighted Average Price (TWAP) of $GOLD is under peg. This means that $GOLD price will have had to have been under 1 $FTM per 1 $GOLD for the majority of the previous epoch in order to trigger the BONDS to "open".

The BONDS will always open at the very beginning of a new epoch, and remain open for the entire epoch — the BONDS can not and will never open mid-epoch — and during epochs in which the BONDS is open, $GOLD will not be printed in the Boardroom.

"What is the formula to calculate the redemption bonus for $BGOLD?"

To encourage redemption of $BGOLD for $GOLD when $GOLD TWAP > 1.1, and in order to incentivize users to redeem at a higher price, $BGOLD redemption will be more profitable with a higher $GOLD TWAP value. The $BGOLD to $GOLD ratio will be 1:R, where R can be calculated in the formula as shown below:

R=1+[(GOLDtwapprice)-1)*0.7)9)]

To further illustrate why the longer you hold $BGOLD the more profitable it is, let's take an initial $1000 investment into consideration. In this example, say this $1000 is used to buy $GOLD when $GOLD TWAP is 0.95 and then swapped for $BGOLD. If these $BGOLD are redeemed when: -$GOLD TWAP is 1.5, your investment would now be worth $1421. -$GOLD TWAP is 2, your investment would now be worth $1789. -$GOLD TWAP is 3, your investment would now be worth $2526. -$GOLD TWAP is 5, your investment would now be worth $4000.

"I expected $BGOLD to be issued in the BONDS, but there is none. Why?"

There is a balanced state "at peg" when $GOLD TWAP is between 1.00 and 1.01, and this means there is neither contraction nor inflation.

"When can I swap $BGOLD back to $GOLD?"

You can swap it back again when the following two criteria are met:

1: $GOLD TWAP is above peg and

2. There is enough in the treasury to cover it the redemption.