💸Types of Bonds

InstaBonds

InstaBonds provide a solution to user reluctance in regards to vesting their tokens, even for a mere five-day period. Although tokens are sold at a discount, this discount is less than the sell tax. This prevents instantaneous arbitrage between the discounted bonds and the market price.

Example: Market Price of JPG is $1, Bonding Price is .90, Sales tax is 13%. An arbitrage is not profitable.

Vested Bonds

Vested Bonds provide a greater discount when compared to InstaBonds, as a risk premium for the 5-day vesting of their JPG tokens. The discount on vested bonds is greater than the sell tax on the bonded asset.

Example: Market Price of JPG is $1, Bonding Price is .80, Sales tax is 13%. An arbitrage is profitable, but not instantaneous.