Introducing — DEI Bonds

Reasoning to launch DEI Bonds:

While DEI redemptions could be considered higher risk/reward due to exposure to DEUS, DEI bonds are lower risk/reward –

DEI holders have been expecting a lower risk asset when they bought DEI and are not willing to swap DEI for a higher risk asset like vDEUS.

DEI bonds are an extension to the redemption program, the goal with redemptions in combination with bDEI is to offer an exit strategy for each risk type, that also helps the protocol to regain desired collateral ratios.

DEI Bonds can be considered low risk/reward because

1. you can get DEI back at the end of bond maturation
2. Bond maturity minimum of 12 months but individually based on the NFT you receive at the bDEI mint.
3. bDEI is a liquid ERC20 token, that will be pooled with DEI on stableswaps.
4. Trade bDEI to DEI via Stablswaps (e.g curve/beets) at any time
5. bDEI should stay pegged to DEI, as there will be no difference between bDEI and DEI as the maturation date gets closer.
6. Deposit your bDEI into staking contracts as LP or single token to receive yield in DEUS + potential DEX tokens (like beets)

Target APR:

for bDEI/DEI LP staking : 20%

for bDEI Single staking: 10%

We may implement a mechanism for vDEUS to Bonded DEI swaps.

Maturity & the maturity reduction NFT

bDEI will be redeemable for DEI 1:1 after maturity from the redemption contract.

Users that redeem bDEI after maturity could receive additional protocol profits and one-time interest, accrued during the time of debt.

Users that mint bDEI additionally get an NFT that reduces their maturity time on their bDEI later.
The earliest bonders get the most reduction on their maturity time. This is because earlier bonders are adding more value to the protocol.

The First 10m DEI bonds get an NFT that enables them to lower their maturity to 115 days.

Afterward, we have a linear progression like this:

NFTadjustedMaturityTime = ((365/31.7073913)/1,000,000) * deiBondedUntilNow

The value proposition for the protocol

bDEI removes DEI from circulation reducing the total Supply and therefore increasing the backing for the remaining DEI.

Example:

Before Bonds

After 23m DEI bonds bought.

dei bonder: 0xE7640957A5B5f0F2624F377F8e32c8dB2942AD62

bDei: 0x05f6ea7F80BDC07f6E0728BbBBAbebEA4E142eE8

redeem nft: 0x44656b5f0454b3dDBc03471dc391056331F19476

LPToken deployed to: 0xcEDf81bcb3dec2479D65b943a43159a4b04ad945

Stableswap DEI/bDEI: 0xDce9EC1eB454829B6fe0f54F504FEF3c3C0642Fc