Ripae Finance
Search…
⌃K

Bond Market

$pegToken = $pFTM, $pAVAX, $pSolid, $pBNB, $pMatic, $pCRO, $pETH $bondToken = $bFTM, $bAVAX, $bSolid, $bBNB, $bMatic, $bCRO, $bETH $nativeToken = $FTM, $AVAX, $SOLID, $BNB, $MATIC, $CRO, $ETH Share Tokens = $PAE, $sCRO, $sETH

The Bond Market

Ripae Finance is an algorithmic peg token that is meant to be moving around the value of 1 $nativeToken. As the value of the peg is algorithmic, it’s common for the value of the $pegToken to fluctuate to be both slightly above and below the value of 1 $nativeToken. When the $pegToken has a value higher than 1.01 $nativeToken, new $pegToken is distributed in the Bank. When the $pegToken has a value lower than 1 Native Token, the Bank stops distributing the $pegToken and the Bond Market is instead open.

Bond Issuance

The $bondToken are created on each Epoch that the Bank operates on whenever 1 $pegToken < 1.01 $nativeToken (Also called Contraction Phase). During these Epochs, the Bond Market issue 3% new $bondToken of current circulating the $pegToken supply. This happens on each Epoch until the Supply of the $bondToken is equal to 35% of the circulating supply. In simple terms, the $bondToken Circulating Supply < the $pegToken Circulating Supply during an Epoch shift, then mint 3% new $bondToken. However, the $bondToken can only be bought when 1 $pegToken < 1 $nativeToken. The $bondToken TWAP is based on the $pegToken price TWAP from the end of the last Epoch which means that the $pegToken TWAP is current and the $bondToken TWAP isn’t.

Incentives

Users who help the Ripae Protocol to sustain its algorithmic peg to the chain’s native currency should be highly rewarded. There are two ways that the $bondToken get’s rewarded which can be chosen depending on personal preference.
While 1 $pegToken = 1 $nativeToken - 1.1 $nativeToken, you can trade back your $bondToken at a ration of 1 $bondToken = 1 $pegToken. Doing this have earned you the difference between buying 1 $bondToken when the $pegToken was below peg, and the current value of the $pegToken.
While 1 $pegToken >1.1 $nativeToken, you can trade your $bondToken at a ratio of 1 = 1 + BONUS. Doing this have earned you the difference between buying 1 $bondToken when the $pegToken was below peg, and the current value of the $pegToken + BONUS.
The BONUS yield for redeeming the $bondToken when 1 $pegToken is worth 1.1 $nativeToken or above is calculating using a specific formula. The full redemption value would be: 1+[($pegToken(TWAP)−1)0.7)] = $pegToken or 1+[($pegToken(TWAP)−1)0.7)] = $pegToken redemption value
Example of the $bondToken redemptions:
You burned 1 $pegToken for 1 $bondToken when 1 $pegToken was worth 0.87 $nativeToken. Current value of 1 $pegToken = 1.099 $FTM. You exchange 1 $bondToken to 1 $pegToken giving you a profit of 0.229 $FTM. You burned 1 $pegToken for 1 $bondToken when 1 $pegToken was worth 0.87 $FTM. Current value of 1 $pegToken = 1.101 $FTM. You exchange 1 $bondToken to 1 $pegToken + BONUS giving you a profit of 0,231 + 0,115 = 0,346 $FTM.
These examples illustrate that buying the $bondToken when the $pegToken is below peg and redeeming them when the $pegToken is above peg could provide a high % profit. Waiting to redeem the $bondToken until peg is higher or equal to 1.1 of the peg is extra profitable.

Buy Bonds

You buy the $bondToken at the Bond Market whenever 1 $pegToken < 1 $nativeToken (according to TWAP) after last Epoch. Each Epoch creates a 3% new $bondToken and there is no limit to how many any single wallet can buy. You buy the $bondToken with the $pegToken. The cost of the $bondToken is the current value of the $pegToken. The $pegToken that is used to buy the $bondToken is then burned, which means that the value of the $pegToken increases. When the $pegToken is once again worth over 1 $nativeToken, the buyer of the $bondToken can then trade their the $bondToken 1:1 with the current value of the $pegToken.

Expiration

The $bondToken never expires which means that buying $bondToken is a future investment in the protocol and can be redeemed according to the redemption rules.
Last modified 3mo ago