Bond Creation
Last updated
Last updated
The bond creation screen is the most important part of Kosmos. Bonds created here will populate the marketplace and create the trading economy that users will interact with. Users have a wide array of options when creating bonds which can be seen below:
Selecting the Asset: Users must first decide what kind of token they would like to lock-up. This can be any token on AirDAO's ecosystem and even some bridged assets from chains like ETH.
Selecting the Asset Amount: Next users select how much of each asset they would like to put into the bond. This is used as a basis for setting the price of the asset in the next step.
Setting The Price for the Bond: The user is then free to set a price for the bond, such that the purchaser must pay that cost, in order to access the locked assets (which eventually will vest).
Crafting the Vesting Schedule: To enhance the flexibility and appeal of their bonds, users can customize their vesting schedule, specifying the time periods over which the bondholders will receive their assets.
Select Payment: Users can determine the type and amount of currency they want to receive in exchange for their bonds. This allows them to tailor their offerings to specific investor preferences and market conditions.
Users also have access to advanced settings when creating bonds. These settings allow for greater customization and flexibility and are described below:
Auction Type:
FPA (Fixed Price Auction): FPA represents the simplest auction variant. It enables creators to buy/sell a specific token capacity at a quoted price for a defined duration. Similar to a limit order in an order book exchange, the aim of this auction format is to maximize token sales at the predetermined price.
OFDA (Oracle Fixed Discount Auction): This auction offers a fixed discount to an oracle price for purchasing a targeted amount of tokens. It requires an oracle contract that supports tokens sold in the bond auction.
SDA (Sequential Dutch Auction): In a Dutch Auction, an initial high price is established for an item (in this scenario, the exchange rate between two tokens). As the auction progresses, the price gradually decreases (decays) over time until the item is bought or reaches a configured minimum price that it cannot fall below.
OSDA (Oracle Sequential Dutch Auction): The Oracle Sequential Dutch Auctioneer implements a simplified sequential dutch auction pricing methodology which seeks to sell out the capacity of the market linearly over the duration. We do so by implementing a linear decay of price based on the percent difference in expected capacity vs. actual capacity (relative to the initial capacity) at any given point in time. The OSDA allows specifying a base discount from the oracle price and calculates a decay speed based on a target deposit interval and target discount over that interval.
Vesting Type:
Fixed Expiry: In this setting, all tokens purchased by users become unlocked simultaneously after a specified period following the end of the bond auction. Essentially, the vesting duration remains uniform for all users and commences immediately after the bond auction concludes.
Fixed Term: Under this setting, tokens become unlocked after a selected vesting period from the moment users acquire tokens in bond auctions. In simpler terms, the earlier a bond is purchased, the earlier the vesting duration begins to count down.
Price Discount: Discount applied to the total set value of the bond.
Deposit Interval: The maximum portion of the bond that can be sold within a 24-hour period.
