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ApeSwap Bond Pricing
ApeSwap Bonds are dynamically priced directly proportional to demand, and inversely proportional to time. Accordingly, Bond pricing is determined by three primary factors:
- 1.The price of the input LP token, blue chip asset, or stablecoin that is used to purchase the Bond
- 2.The price of the output token (i.e., BANANA or a partner project token)
- 3.The time since the last Bond was purchased
- 4.Demand for a specific Bond
These factors combine to establish a discount on the output token, relative to the current market price on that output token.
Bonds start out at a specific discount, set by ApeSwap. Over time, that discount will increase if the price of the input LP tokens (#1) and the price of the output token (#2) has no change in value, to make the Bonds more attractive to purchase.
When you purchase a Bond, the entire amount of the tokens you purchase will be discounted by the amount shown at the time of purchase.
If the price of the output token increases, and the price of the input token(s) decreases or stays the same, the discount of the Bond will increase, as you can now purchase the output at a larger discount (because the output token is worth more, and the input token(s) is worth the same or less). The two price points are diverging away from each other, increasing the discount.
If the price of the output token decreases and the price of the input token(s) increases or stays the same, the discount of the Bond will decrease, as you can now purchase the output token at a lower discount, as the output token is worth less and the input LPs are worth the same or more. The two price points are converging towards each other, decreasing the discount.
If the Bond discount indicator is a red, negative number, it means that purchasing the NFT will not return output tokens at a price lower than the current market rate. Users can still purchase Bonds and receive output tokens and their NFT, but must acknowledge that they are purchasing at a price higher than the current market value.
Last modified 4mo ago