📈Bonds
Bonds are a form of "earnings certificates" designed to incentivize purchasers in exchange for enhancing protocol-managed liquidity. Traditionally, tokens are purchased on the open market, meaning they have a direct impact on the asset's pricing. Bonds, however, function akin to an over-the-counter ("OTC") purchase, meaning capital is provided to Automatic's treasury directly such that the price of the asset remains unaffected. Automatic's Bonds are vested 6, 9, or 12 months; thus, a bond can be equated to a "long" position on either rATP or ATG. As a result, you may consider a bond's discount as either a fee reduction on the price of the asset, or alternatively, the guarantee of immediate profits provided the asset's price remains constant from the time of issuance to the date of maturity.
Receive adjustable discounts on rATP and ATG
6 Month bonds are vested over 6 months linearly
9 Month bonds are vested over 9 months linearly
12 Month bonds are vested over 12 months linearly
Bonds are vested over one year and are rewarded in the native rATP or ATG, as opposed to their escrowed variants, esrATP and esATG.
rATP Bond Premium Discounts
3% Discount from Market Pricing (adjustable prior to issuance)
rATP Bonds are denominated, based on the current $USD price of rATP
ATG Bond Premium Discounts
3% Discount from Market Pricing (adjustable prior to issuance)
ATG Bonds are denominated, based on the current $USD price of ATG
Bond Revenue Distribution
25% to Automatic Foundation Guard to protect ATG
25% to Automatic Foundation Guard to protect rATP
20% to Treasury for Operations
10% to Treasury for ALP acquisition
5% to rATP buybacks
5% to ATG buybacks
10% to ATG holders
Post TGE, the default bond discount is set to 3% (6 Month); 6% (9 Month); 9% (12 Month)
🪙Token Generation EventTechnical information underlying Automatic Bonds
In return for providing capital directly to Automatic rather than purchasing tokens through a 3rd party market maker like Uniswap or a CEX, the user receives a “discount” (more tokens than he would normally receive on the open market). The discount is called a “discounted premium” and can be adjusted by the team. Automatic can encourage or discourage bonding by increasing the premium discount or increasing the premium itself; in other words, if Automatic seeks to discourage bonding, the discounted premium may be set at -15% (negative), meaning the user would pay more than the tokens would cost on the open market. In times of growth, Automatic will incentivize users to bond, and in times of contraction, Automatic will increase premiums, up to 100%.
Once a bond is issued, its rate may never be adjusted; it is guaranteed and fixed.
Bonds are initially issued without restriction; however, the Automatic TGE sets aside a fixed percentage of tokens for distribution through bonds. As this pool empties, holders may not have the ability to purchase new bonds.
⛑️Automatic Foundation GuardLast updated
