FDOGE Bonds (BDOGE) purpose is to help incentivize changes in FDOGE supply during an epoch contraction period.
- FDoge Bonds (BDOGE): When the TWAP (Time Weighted Average Price) of BDOGE falls below 1 FTM, BDOGEs are issued and can be bought with FDOGE at the current price. Exchanging FDOGE for BDOGE burns FDOGE tokens, helping to get the price back up to 1 FTM.
Exchanging FDOGE for BDOGE burns FDOGE tokens, taking them out of circulation causing deflation and helping to get the price back up to 1 FTM. These BDOGE can be redeemed for FDOGE when the price is above peg in the future, plus an extra incentive for the longer they are held above peg.
This amounts to inflation and sell pressure for FDOGE when it is above peg, helping to push it back toward 1 FTM.
Contrary to early algorithmic protocols, BDOGE do not have expiration dates.
All holders are able to redeem their BDOGE for FDOGE tokens as long as the Treasury has a positive FDOGE balance, which typically happens when the protocol is in epoch expansion periods