Bond Issuance Contracts
Last updated
Last updated
KLK Sync Protocol supports two primary types of bond issuance mechanisms: Reserve Bonds and Collaborative Bonds. These contracts enable the protocol to expand or contract KSP supply in a behavior-driven, decentralized manner.
Input Assets: USDC / AED and other stablecoins
Output: Minting of KSP tokens at market price with a discount
🧮 Discount Rate Formula:
BCV (Bond Control Variable): A protocol-defined coefficient that adjusts discount aggressiveness.
Stablecoin proceeds are sent directly to the Treasury and do not participate in LP provision.
Input Assets: KSP-USDT LP tokens
🔁 Issuance Process:
LP token is valued using the VRFV (Behavior-Weighted Risk-Free Value) model.
Execution value is influenced by behavior score:
Higher collaboration → Higher discount
KSP is released after an execution period (e.g., 5 days or a predefined term).
🔍 Factors affecting bonding terms:
PoC Score (Proof of Collaboration)
Staking history and consistency
Unlocking frequency
This dual-bond mechanism ensures capital inflow while reinforcing long-term engagement through behavior-based incentives.