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Bond Tokens

Bond Tokens (BTs) are crypto-native ERC20 tokens backed by bonds purchased in traditional markets. While BTs do not represent direct ownership of these real-world bonds—meaning holders cannot redeem them before maturity or sell them in traditional markets—owning BTs unlocks a wide range of onchain and DeFi use cases.


This includes:

• Collecting coupon payments


• Trading on Bondi’s secondary markets


• Redeeming the principal value at maturity


• Using BTs in DeFi protocols, such as:
     • Creating liquidity pools on decentralized exchanges
     • Collateralizing BTs for lending and borrowing
     • Integrating them into yield strategies or other ERC20-compatible mechanisms


Each bond token is represented by a unique BT. For example:
• A bond from firm ALPHA may be named btALPHA.


• A bond issued by firm BETA may be named btBETA.

Token Supply & Pricing

The total BT supply for each bond is determined using the following formula:


TotalSupply = (Target Funding Amount × 1e18) / Purchase Price

Calculation:

The Math.mulDiv formula computes the token supply with precision to 18 decimals (ERC20 standard).


Where:

• fundingAmount: 200,000


• 1e18: Represents 18 decimals


• mintPrice: 90


Substituting into the formula:
emittedBonds = (200,000 × 1e18) / 90 = 2,222,222,222,222,222,222,222

This result represents 2,222.222... BTs when adjusted for 18 decimals.


At Maturity:

Each BT converges to a $100 face value, collectively representing:


2,222.222... × 100 = 222,222.22... USD

Semi-Permissioned Structure

Bond Tokens feature a semi-permissioned structure. While the token holders are free to trade and transfer their Bond Tokens onchain, minting, coupon redemption, and burning require identity verification.


Permissioned Actions

• Minting: Bond Tokens are minted by participating in the funding phase and depositing money in the Funding Contracts (see the Primary Market).


• Coupon Redemption: When the coupon date of a bond arrives, token holders can enter the User Dashboard to redeem their coupon payments. Coupon payments are made with stablecoins transferred directly to the token holder’s wallet.


• Burning: When a bond reaches maturity, token holders are entitled to redeem the face value (principal) of their investments. When Bond Tokens are burned in the User Dashboard, the principal is transferred to the token holders’ wallet in the form of stablecoins.


Permissionless Actions

• Trade: Bond Tokens can be traded either in Bondi’s Secondary Market (see the Secondary Market) or other DeFi pools.


• Transfer: Token holders can freely transfer their Bond Tokens to any wallet that supports ERC20 tokens and onchain transfers.