Summary

1. Bonds do not rely on market data. The bond market is self-regulating; bond prices are determined by the number of bonds still in the vesting period. When there are few bonds in the vesting period, the bond executing price is high, and the bond unit price is low; conversely, when there are many, the executing price is low, and the bond unit price is high. Market participants choose prices they deem reasonable to buy bonds, causing bond prices to be in constant flux.

2. Bonds delay the market impact of new ORI supply. ORI from bonds becomes the user's disposable asset after 5 days, extending the distribution range of new ORI supply. Bond sales create quick arbitrage opportunities (buying at a discount and selling into the pool), which can increase ORI price volatility.

3. Bonds require less management. Bond sales are designed with a protocol-controlled discount rate that needs to be attractive enough for buyers. The discount rate is influenced by the premium; thus, the inflation rate (BCV) requires micro-management. However, USDT bond discounts are more market-driven, requiring less intervention.

4. Bonds are a more market-driven method to achieve protocol goals. USDT is exchanged into the treasury, and the protocol mints new ORI. Trading volume increases with rising transaction prices.