xbond can be an intimidating and confusing mystery to protocol new comers. It’s no secrete the potential rewards are lucrative. However, just like any relationship getting in is much easier than getting out. If the objective of xbond is to lock USDx, and reward holders for doing so, I think the protocol does a good job of doing this. As a protocol stabilizing tool, its serving a purpose but, as an investment instrument and yield generator its murky.
Say I simply want to pull USDx out of xbond to move into Share or an LP. To do so at the optimal time for my comfort level I need to determine the “maturity” of my xbond holdings. Since the total xbond minted is cumulative based on dollar cost averaging into xbond over multiple cycles at different ratios it’s difficult to determine a cost basis, net $value and % gain, especially when considering the value of the USDx at the time it was locked vs present value.
An xbond calculator and visual representation of the user specific bond curve would allow me to spot optimal timing quickly while still making an informed decision. If I could visualize how big of a slice of my xbond redemption pie to eat now and how much to save for later I can manage my risks in moments to align with my investment strategy.
I’m not sure multiple yield curves or different lock up times help me much. It’s the fundamental questions: What’s the aggregate value of the USDx I put into xbond accounting for the USDx value at the time when I locked it? What rewards/interest have I accrued on my deposit? What’s the tradeoff of withdraw vs. continuing to accrue rewards? What’s my cost basis?
Last thought - the bonding curve could be adjusted for all xbond holders to act as a monetary supply control mechanism depending on if we are in an expansion or contraction period (i.e. multiple positive, neutral or negative rebase periods).