Bonds & Staking

*Yawn* Let's talk about Bonds....

Bonds

• Users can deposits $iBGT or $APIARY/$HONEY LP receipt tokens to the treasury in exchange for discounted $APIARY (vested over 7 days).

• Bonds allow the treasury to grow, fueled by the high yielding nature of $iBGT and slow issuance period. Users benefit from receiving the best possible price for $APIARY with a short vesting period of 7 days.

Bond Pricing

Debt Ratio (Outstanding Bonds/Treasury)	Discount Offered
0-3%	8% Discount
3-6%	5% Discount
6-10%	3% Discount
>10%	N/A (Bonds are paused)

• The Bond Control Variable (BCV) adjusted weekly based on demand:

  • High Demand (>80% of weekly capacity filled) -> discount reduced by 1%

  • Low Demand (<30% of weekly capacity filled) -> discount increased by 1%

Bond Limits:

• Debt Ceiling: Bonds outstanding cannot exceed 10% of treasury value

• Maximum Single Bond: 1% of Protocol Treasury Value

• Maximum Daily Issuance: 3% of total $APIARY supply

• Treasury Protection: Bond sales stop when the discount would allow buying Apiary tokens below the treasury value of Apiary ensuring the treasury value in BGT can only go up

Staking

• As the protocol's treasury collects yield, it is able to mint new $APIARY tokens backed by the increased treasury value. These freshly minted tokens are used to issue more bonds. (See Phase 2 & 3 on What is Apiary.Fi? for more information regarding distributions to staked $APIARY)

• TLDR: Stake ur $APIARY tokens for more tokens!