Olympus Finance 2
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Bonds Mechanism

What are TPLUTO (Bonds)?

TPLUTO are unique tokens that can be utilized to help stabilize THERMES price around peg (1 FTM) by reducing circulating supply of THERMES if the TWAP (time-weighted-average-price) goes below peg (1 FTM).

When can I buy TPLUTO (Bonds)?

TPLUTO can be purchased only on contraction periods, when TWAP of THERMES is below 1.
Every new epoch on contraction periods, TPLUTOs are issued in the amount of 3% of current THERMES circulating supply, with a max debt amount of 35%. This means that if bonds reach 35% of circulating supply of THERMES, no more bonds will be issued.
Note: BONE TWAP (time-weighted average price) is based on TPLUTO price TWAP from the previous epoch as it ends. This mean that THERMES TWAP is real-time and TPLUTO TWAP is not.

Where can I buy TPLUTO (Bonds)?

You can buy TPLUTO if any are available, through the Bond on Olympus Finance, anyone can buy as many TPLUTO as they want as long as they have enough THERMES to pay for them.
There is a limit amount (3% of THERMES current circulating supply) of available TPLUTO per epoch while on contraction periods, and are sold as first come first serve.

Why should I buy TPLUTO (Bonds)?

First and most important reason is Bonds help maintain the peg, but will not be the only measure use to keep the protocol on track, more on that on DAO Fund section.
TPLUTO don't have a expiration date, so you can view them as a investment on the protocol, because long term you get benefits from holding bonds.

Incentives for holding TPLUTO

The idea is to reward TPLUTO buyers for helping the protocol, while also protecting the protocol from being manipulated from big players.
So after you buy TPLUTO using THERMES, you get 2 possible ways to get your THERMES back:
  1. 1.
    Sell back your TPLUTO for THERMES while peg is between 1 - 1.1 (1 FTM) with no redemption bonus. This to prevent instant dump after peg is recovered
  2. 2.
    Sell back your TPLUTO for THERMES while peg is above 1.1 (FTM) with a bonus redemption rate

When can I swap TPLUTO for a bonus?

TPLUTO TWAP (time-weighted average price) is based on THERMES price TWAP from the previous epoch as it ends. This mean that THERMES TWAP is real-time and TPLUTO TWAP is not. In other words, you can redeem TPLUTO for a bonus when the previous epoch's TWAP > 1.1.
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What are TPLUTO (Bonds)?
When can I buy TPLUTO (Bonds)?
Where can I buy TPLUTO (Bonds)?
Why should I buy TPLUTO (Bonds)?
When can I swap TPLUTO for a bonus?