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Bonding

Bonding is an active strategy allowing Excalibur to build up a treasury made of liquidity and reserve assets.
Every bond contract will offer to exchange GRAIL, Excalibur shareholding token, against either Excalibur LP tokens or single assets.
The entirety of the liquidity and single assets bonds will always and automatically be sent to the DAO treasury.

Bonding terms

Every Bond contract will be configured with its own values for the following terms:
  • A bond token (either a LP token or a single asset token)
  • A bond token -> GRAIL ratio
  • A deposit phase duration
  • A maximum amount of GRAIL to distribute
  • A vesting duration
Unlike more traditional protocols implementing a bonding system, these are more or less short-term contracts, with limitations in terms of time and amounts.
To activate a new Bond contract, its maximum GRAIL rewards added to those of other active Bond contracts can't exceed 10% of the total GRAIL supply.
This gives us great flexibility, allowing us to feed our reserve punctually only when it's needed, but also protecting the GRAIL holders from having their shares diluted from uncontrolled inflation.

Bonding models

Two different types of Bonding will be available, depending on our needs: Bond Auction and FCFS.

FCFS (First Come First Serve)

The bond token -> GRAIL ratio is fixed from the beginning, and the deposits will be blocked as soon as either the deposit phase has ended or the maximum deposit amount have been reached.

Bond auctions

Those will be divided into three phases:
  • An auction round: a limited number of GRAIL will be minted. The initial ratio for these bonds will start at 1:1 — (Bond Token $ value to GRAIL (EXC) token $ value). If more bond tokens are raised than the GRAIL being offered, then the average buying price for GRAIL will be adjusted to match through the following calculation:
MAX(totalRaisedInBondTokens/availableGRAILSupply,initialGRAILPrice)MAX(totalRaisedInBondTokens / availableGRAILSupply, initialGRAILPrice)
In other words, the real GRAIL price for a bond auction can increase over time, and will only be known once the auction phase has ended and every participant made his deposit of bond tokens.
In the event that not enough bonds are raised (users do not choose to purchase all of the bonds in total, for whatever reason) then the ratio will be kept at 1:1, but the outstanding GRAIL that were not bonded will not be minted.
  • A bonding phase, during which the user will have to synchronize his deposits during the previous phase to activate his rights on his allocated GRAIL
  • The redeeming phase

Redeeming

Once the deposits have been made, the GRAIL rewards will be vested over the bonding period. You can harvest progressively your rewards, until they are fully claimable when the whole vesting period has passed.