Bonds

As explained in Tokenomics, all the $KTN tokens will be minted via bonds. The first whitelist asset available will be $USDC. The $USDC/$USD peg will be constantly updated thanks to the Chainlink oracle: https://docs.chain.link/docs/data-feeds/price-feeds/addresses/?network=ethereum (You can find here the $USDC/$USD chart: https://etherscan.io/address/0x8fFfFfd4AfB6115b954Bd326cbe7B4BA576818f6) Constantly tracking the $USDC peg allows us to offer a balanced mint price always backed by the real value of the $USD.

The price displayed on the bonds section is calculated via a negative exponential bonding curve which is integrated in the smart contract. The more the demand increases (number of minted tokens) the more the price increases. This function allows to share the supply in a fair way. Indeed, the more the supply increases, the more the price stabilizes (see chart in Tokenomics). This reduces the price gap between the early adopters and the others. In addition to this part of fair distribution, this system also allows for arbitrage on market price. Bonds are an essential part of our protocol in order for the protocol to own its treasury (POT) and to be able to create Real Yield through an active management of it. The yield generated will be redistributed to the holders up to 85%, 15% will be reserved for the team (marketing, salaries etc.). The USDC in treasury will be used to fuel the various investment strategies and create the Real Yield. (The USDC used to increase liquidity will be used to reduce the price impact on the $KTN/$USDC pair as well as to generate fees via the Uniswap V3 protocols. These fees will participate in the revenue generated by the protocol and are part of the real yield redistributed to holders). The bond system will allow Kostren Finance to own its treasury as well as its liquidity and therefore to be POL & POT.