🪝PBD - Poseidollar Bonds

Poseidollar Bonds ( PBD ) help to incentivize changes in PBD supply during both epoch expansion and contraction periods.

For starters, the exchange rate for PDO to PBD is 1:1, but PBD to PDO ratio is dependent upon the mechanism as described here.

When PDO's TWAP falls below the 1 USDC peg, PBD is issued and can be purchased with PDO at its prevailing price. This will help burn PDO and reduce the supply of PDO.

When PDO exceeds or returns to the 1 USDC peg, PBD can be used to convert back to PDO for profit. Please refer to the conversion formula from PBD to PDO here.

Contrary to early algorithmic, seigniorage stablecoin protocols, PBD does not have expiration dates. All holders have the ability to redeem their PBD for PDO tokens as long as the Treasury has a positive PDO balance, which typically occurs during epoch expansion in the protocol.