Skip to main content

Coupon Distribution

Bond Token holders receive periodic stablecoin payments corresponding to the underlying bond's coupon schedule through an automated, snapshot-based distribution system.

Overview​

Bond Token holders receive onchain coupon distributions corresponding to the issuer's actual coupon payments. Snapshot‑based entitlements ensure fungibility and prevent transfer gaming.

Coupon Flow Diagram​

Coupon Flow

How Coupons Work​

Offchain Process​

The coupon payment process begins in traditional finance and bridges to onchain distribution:


• Issuer Payment: The bond issuer pays the coupon into Bondi's regulated segregated account
• Currency Conversion: Funds are converted from fiat currency to stablecoins
• Onchain Transfer: Funds are transferred to the Distribution Contract for automated distribution

Onchain Distribution​

Once funds arrive onchain, the distribution mechanism activates:


• KYC Wallet Payouts: Verified wallets receive automatic stablecoin distributions
• Non-KYC Accumulation: Non-verified wallets accumulate pending claims that can be withdrawn after KYC completion
• Merkle Proof Verification: All distributions are verifiable via Merkle proofs for transparency