Bonding
Bonding is one of the primary ways to generate profit for the Chatter Finance Treasury. When a user buys a bond, the protocol quotes the bonder, a future contract with terms for trade. These terms include the discounted price of CHRF, vesting time, and the amount. The bond becomes redeemable as it vests.
Bonding increases the reserves of the treasury. This helps in increasing the floor price of CHRF tokens by backing each CHRF token with greater value assets.
However, the price discovery mechanism of the secondary bond market renders bonds discounts more or less unpredictable and has to be monitored constantly. Chatter Finance, therefore, aims to remove the complete dependence on bonding as a sole profit generation avenue for the treasury with the following.
Last modified 9mo ago