/// Reading the chain
/// Bonds
Buy reserves at a discount
Bonds let a DAO acquire backing by selling its token at a discount for hard reserves. Markets are gated by excess reserves, priced on an announced delay, and floored at ~95% of the token TWAP so a discount can never become a giveaway.
/// Gated at launch
Excess-reserve gatedWhen a market can open
Bond markets are excess-reserve gated at launch. A market can only open when the treasury is backed above its liabilities — the same excess-reserve test that gates staking emissions. A DAO cannot bond away reserves it does not have, so bonds add backing rather than dilute into thin air. See how backing is measured.
/// Two ways to price a bond
The creator path and the senate path
Creator · announced queue1h delay
The creator controls pricing through a one-hour announced queue. They call queuePriceAction, the change is visible on-chain for the delay, and then anyone can call executePriceAction once the hour has passed.
1Creator queues the price action.
2One hour of public notice — the market can see it coming.
3Anyone permissionlessly executes it after the delay.
Senate · direct path
The senate has a direct path to bond pricing — governance can act without waiting on the creator’s queue. The two paths coexist: a creator can steer day to day inside the announced delay, and the senate retains sovereign control over the same levers. See the senate.
Neither path escapes the discount floor below — the 95%-of-TWAP rule binds both.
/// The discount floor
Max 5% at the start
Max start discount5%off the token TWAP
Open no lower than~95%of the TWAP
ReferenceTWAPtime-averaged, not spot
A market may not open below roughly 95% of the token TWAP — a maximum 5% start discount. Pricing off the time-averaged price, not spot, means a single-block wick cannot be used to open a cut-rate market. Once open, a market may decay under that level as it seeks a clearing price, but it can never be launched into an instant deep discount.
/// What can back a bond
Exotics are LP-bonds only
LP-bonds only
Exotic assets can only back LP-bonds — never a bare reserve bond — and they are valued by a ROHME-vetted oracle. Keeping exotic collateral inside LP positions and behind a vetted price feed means an obscure or thin asset can never be waved in as treasury backing at a number nobody can defend.