Bonds and $TIFO mint
Last updated
Last updated
Tifo Trade mainly offers two types of bonds to mint $TIFO: liquid bonds and reserve bonds.
The act of Tifo Trade users using TIFO/USDT LP to trade with the Tifo Trade protocol is referred to as "buying liquid bonds". Through this process, the protocol gains ownership of the LP while the user loses ownership.
In exchange, users purchase more $TIFO at the transaction price. The protocol then calculates the risk-free value (RFV) of the LP in terms of $TIFO quantity, as it has now obtained ownership.
RFV = (LP / Total LP) * 2sqrt(Constant Product) {Constant Product is the constant product of this LP}
Executing Price = RFV / Premium {Premium ≥ 1}
Premium = 1 + (Debt Ratio * BCV)
{BCV is the inflation rate determined by the protocol}
{Bonds Outstanding: number of bonds outstanding}
Debt Ratio = Bonds Outstanding / $TIFO Supply
ROI = TIFO transaction price ∗ Executing Price LP actual price−1
ROI = TIFO transaction price ∗ RFV LP actual price ∗ Premium−1
Liquid bonds give users a corresponding percentage discount, users have a corresponding percentage of ROI when they buy bonds. The bigger the discount, the higher the rate of return. The bonds have a vesting period of 5 days. After the vesting period ends, the user gets $TIFO, and this process is irreversible.
The bond premium is determined by the number of bonds outstanding. The fewer bonds outstanding, the lower the bond premium. The higher the bond's executing price, the greater the return rate (higher discount) for the user to purchase the bond, thereby increasing their motivation to do so.
Users can purchase reserve bonds using tokens on a whitelist, namely $USDT, $USDC, $WBTC, $ETH, and $UNI, to mint $TIFO. These tokens are owned by the protocol. As a result, users receive more $TIFO than they would if they purchased them directly from the market.
Reserve bonds provide users with a proportional discount and have a 5-day vesting period. Once this period ends, users receive their $TIFO tokens, which is an irreversible process.
When users use USDT LP to purchase reserve bonds, the protocol does not need to evaluate the risk-free value and mint 100% of the $TIFO according to the funds it receives.
For example, if LPs worth $2,000 purchased liquid bonds to mint $200 TIFO, users with USDT worth $2,000 can purchase reserve bonds to mint $2,000,000 TIFO (with a $0.01 TIFO support price).
The discount for single-token assets in non-stablecoin pools is affected by the weight of the pool. When the actual weight exceeds the target weight, it indicates that the token in the pool has exceeded its expected value. Therefore, the discount for minting $TIFO for that token will decrease.
The LP base pool is an important index of the Tifo Trade protocol.
$TIFO can be staked with compound interest and a high yield, and holders can reach consensus after staking;
LP bonds continued to be sold, bringing continuous liquidity;
The protocol uses the liquidity and active liquidity proceeds for the repurchase of $TIFO tokens.
The price of the bond is equal to RFV / Premium
RFV is the risk-free value, which is the minimum for x plus y when x is equal to y. RFV = 2sqrt(constantProduct) * (LP/totalLP)
Premium = 1 + (Debt Ratio * n) Debt Ratio = Bonds Outstanding / $TIFO Supply.
The discount for single-token assets in non-stablecoin pools is affected by the weight in the pool. When the actual weight exceeds the target weight, it indicates that the token of the pool has exceeded its expected value. Therefore, the discount for minting $TIFO for that token will decrease.
