FUD - Bonds Mechanism
In case of the bears taking over, a bonding system is in place to help the value of HOPIUM recover and make CRONJE happy & printing!
Bonds are unique tokens that can be utilized to help stabilize HOPIUM price around peg (1 FTM) by reducing circulating supply of HOPIUM if the TWAP (time-weighted-average-price) goes below peg (1 FTM).
BEAR can be purchased only on contraction periods, when TWAP pf HOPIUM is below 1.
Every new epoch on contraction periods, BEARs are issued in the amount of 3% of current HOPIUM circulating supply, with a max debt amount of 35%. This means that if bonds reach 35% of circulating supply of HOPIUM, no more bonds will be issued.
You can buy BEARs if any are available, through the FUD page, anyone can buy as many BEARs as they want as long as they have enough HOPIUM to pay for them.
BEAR TWAP (time-weighted average price) is based on HOPIUM price TWAP from the previous epoch as it ends. This mean that HOPIUM TWAP is real-time and BEAR TWAP is not. In other words, you can redeem BEAR for a bonus when the previous epoch's TWAP > 1.1.