Multi-Term XBond

While xbonds are not 100% comparable to t bonds, adding different risk stratified xbond tokens may be interesting.

For example: there could be a xbond_short that locks us user funds for 10 epochs and then allows withdrawal of full principal. This is in addition to all the seigniorage profits.

There could also be a xbond_medium that locks up user funds for perhaps 30 epochs etc.

Each bond would have a different seigniorage profit ratio, separated by risk profile.

Short term bonds would receive less payout than medium term vs long.

I think short term bonds would offer an attractive alternative for new market participants who did not bond at a 1:1 ratio

2 Likes

Very interesting idea. Would allow people to adjust their risk/reward profile for rebase reward profits and I believe could incentivize greater xbond minting during positive rebase cycles. I like it!

Awesome idea. I’m all for it

Interested to see what the seigniorage split looks like

It’s an interesting topic to discuss. It would create an incentive to more actively interact with xBond during positive rebases, as another strategy to compound rewards into.

But would this also mean that the current version of xBond get removed, thus making all xBond alternatives term based with an expiration date?

Interesting ideas, we should encourage those who have long-term holders, greater incentives will promote more long-term holders to gather.
However, there is currently a problem when $usdx<0.95, $xbond:$usdx=1:1, which seems too fast. For example, in the last cycle, $usdx=0.94, and $xbond:$usdx changed from 1:4 to 1:1, which increases the risk of holding $xbond. We need a relatively gentle transition process.

1 Like

agree !when negtive rebase happened xbond:USD might be the same as the rebase% or a bonding-curving relation better to balance the exsiting xbond holders and new participants

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).

2 Likes

For example, in the last cycle, $usdx=0.94, and $xbond:$usdx changed from 1:4 to 1:1, which increases the risk of holding $xbond. We need a relatively gentle transition process.

We want to go positive as fast as possible if a negative rebase occurs, your suggestion would slow this process down.