The idea is to reward mBOND buyers for helping the protocol, while also protecting the protocol from being manipulated by big players.
So after you buy mBOND using mUSD, you have two possible ways to get your mUSD back:
- 1.Sell back your mBOND for mUSD while the peg is between 1 - 1.1 (1 mUSD = 1 BUSD) with no redemption bonus. This is in place to prevent an instant dump as soon as peg is recovered.
- 2.Sell back your mBOND for mUSD while the peg is above 1.1 (1 mUSD = 1 BUSD) with a bonus redemption rate.
The longer you hold, the more both the protocol and you benefit from mBOND.