The Role of LP bond markets

• Purpose of the bond sales

The LP base pool is an important index of the OpenFi protocol.

$OPEN can be staked with compound interest and a high yield, and holders can reach consensus after staking;

LP bonds continued to be sold, bringing continuous liquidity;

The protocol uses the liquidity and active liquidity proceeds for the repurchase of $OPEN tokens.

• Bond price

The price of the bond is equal to RFV / Premium

RFV is the risk-free value, which is the minimum for x plus y when x is equal to y. RFV = 2sqrt(constantProduct) * (LP/totalLP)

Premium = 1 + (Debt Ratio * n) Debt Ratio = Bonds Outstanding / $OPEN Supply.

The discount for single-token assets in non-stablecoin pools is affected by the weight in the pool. When the actual weight exceeds the target weight, it indicates that the token of the pool has exceeded its expected value. Therefore, the discount for minting $OPEN for that token will decrease.