/// 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 deposits can mint
Unlock threshold$1of backing per token of supply
At the standard supply$2,500of audited treasury value
Track itBonds taba live progress meter until unlock
Every bond payout is minted against the treasury’s excess reserves — audited backing above $1 per token of total supply. A freshly launched DAO starts below that line: its whole supply sits in the locked curve while the treasury holds only the seed, so the gate market is visible from day one but deposits stay closed until backing crosses the threshold. The contract refuses them outright — a DAO cannot bond away reserves it does not have, so bonds add backing rather than dilute into thin air.
Nothing needs to be done to open the gate. Backing deepens on its own as the launch curve fills and the DAO’s fee hooks buy reserves; the DAO’s Bonds tab shows a live meter of audited backing against the threshold, and the moment it completes, deposits mint. The same excess-reserve test gates staking emissions. 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.