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Contractions & DBond

## 1. "When can I swap $DIBS for$DBOND?"

$DBOND will only become available in the bonds section following epochs in which the Time Weighted Average Price (TWAP) of$DIBS is under peg. This means that $DIBS's price will have had to have been under 1$BNB per 1000 DIBS for the majority of the previous epoch in order to trigger the bonds section to "open".
The bonds section will always open at the very beginning of a new epoch, and remain open for the entire epoch — the bonds section can not and will never open mid-epoch — and during epochs in which the bonds section is open, $DIBS will not be printed in the Piggybank. ## 2. "What is the formula to calculate the redemption bonus for$DBOND?"

To encourage redemption of $DBOND for$DIBS when $DIBS's TWAP > 1.1, and in order to incentivize users to redeem at a higher price,$DBOND redemption will be more profitable with a higher $DIBS TWAP value. The$DBOND to $DIBS ratio will be 1:R, where R can be calculated in the formula as shown below: $R=1+[(DIBStwapprice)-1)*coeff)]$ $coeff = 0.7$ To further illustrate why the longer you hold$DBOND the more profitable it is, let's take an initial $1000 investment into consideration. In this example, say this$1000 is used to buy $DIBS when$DIBS TWAP is 0.95 and then swapped for $DBOND. If these$DBOND are redeemed when: -$DIBS TWAP is 1.5, your investment would now be worth$1421. -$DIBS TWAP is 2, your investment would now be worth$1789. -$DIBS TWAP is 3, your investment would now be worth$2526. -$DIBS TWAP is 5, your investment would now be worth$4000.

## 4. "When can I swap $DBOND back to$DIBS?"

You can swap it back again when the following two criteria are met:
1: $DIBS TWAP is above peg and 2. There is enough in the treasury to cover it the redemption. ## 5. "Is$DBOND right for me?"

Like anything else in crypto, obtaining $DBOND is not risk-free. Just like in the real world, you are purchasing debt from the protocol with the expectation that you will be redeemed at a premium in the future. To date, this has occurred after all contractions, but past performance does not guarantee the same future outcomes.$DBOND is ideal for those with a medium to long-term time preference, as it incentivizes hodling in exchange for potentially extremely lucrative rewards. If you are looking for a quick flip or have short-term time preference, \$DBOND may not be the right investment option for you.