Farm
$Bonded Duet is distributed as incentives to motivate certain desired activities.

Farming Rewards

Duet DAO approves spending budget to various farms. The allocated $DUET is then transferred to Duet Bond Factory to mint $bDUET($Bonded Duets).
All Farms will reward users with $Bonded Duet tokens with 12 months maturity only. This means, all the farming rewards can be converted to $DUET in 12 months time.
However, users can choose to sell their $Bonded Duet for $DUET at a discount anytime.
Holding Farm rewards till maturity substantially increases yields received whereas selling bonds prematurey would decrease farming yields. Duet effectively seperates speculators from long-term investors, and reward them accordingly.
Expected Yields (APR) are calculated with the assumption that $bDUET are held until maturity.

Rewards Accounting

Duet rewards users based on balances of assets supplied and synthetic assets borrowed. Once a user supplies incentivized assets or borrows incentivized synthetic assets, he or she is automatically considered a farming participant.
Farm rewards are accounted every 7 days. Participants are free to enter and exit farms during farming periods.
Liquidity-Days(LD): LDs is calculated as the amount of liquidity supplied times the length of supplied period.
LDs of all address are added together, and rewards are allocated according to the percentage stake of all the addresses.
Whenever an address withdraws liquidity from the pool, all the LDs associated with the withdrawn liquidity are destroyed such that farming rewards are forfeited to others still present in the pool.
LDs are reset after each reward distribution.

Bond Escrows

Farm rewards are credited to the accounts of participants every 7 days. Participants may choose to withdraw $bDUET to their wallet or simply leave it in the farm pool.
The farm pool automatically holds yet-to-be-claimed rewards in a virtual bond escrow account. $bDUET held in escrow account matures even though it is not claimed and held in personal wallets.
For users who are not looking to sell their bonds prematurely, holding bonds in escrow accounts could be preferred since no gas fee is incurred and it would be easier to manage. Users can withdraw $DUET once bonds mature directly from the farm.
For users who are looking to sell their bonds, they can claim their rewards and sell them to others who are looking to invest their $DUET tokens through the Bond page.
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