> For the complete documentation index, see [llms.txt](https://duet-protocol.gitbook.io/duet-protocol/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://duet-protocol.gitbook.io/duet-protocol/functions-and-user-guides/usdbduet/duet-open-bond-market.md).

# Duet Open Bond Market

By looking at the [previous example](/duet-protocol/functions-and-user-guides/usdbduet/how-to-calculate-the-value-of-a-usdbduet.md), we understand that a bond with a complex payment structure can be viewed simply as a combination of several simple bonds with just 1 payment at each epoch that corresponds to the original payment structure. 

This means a complex bond can be decomposed into several simple bonds and many bonds can be combined to form a complex bond. 

Traditional bonds denominated in US dollars are more like NFTs, with face value, coupon rate, and the duration recorded on the certificate and traded like ERC-1551. This means older bonds face liquidity depletion. 

<mark style="color:orange;">With blockchain technology, we are able to reengineer the bond in a web 3.0 context. With Bonded Duet, payments are made once only each epoch. This means there are going to be only 4 payment blocks each year if there are only 4 epochs in any one year. Any bond that is set to expire in this time window can be represented by 4 separate bonds each expiring at every epoch.</mark>

Each of these payments is administered by an erc20 token contract.

As a result of this new structure, Duet presents a bond market with 4 AMM pools each representing a bond maturing in each of the 4 epochs.

**Investors could reinvest their Duet tokens by buying Bonded Duet with Duet tokens in the bond market with a customized payment structure of their choosing. The longer the duration, the higher the coupon rate, thus the system encourages token holders to lock in preferable coupon rates with longer duration bonds.**

<mark style="color:purple;">Bondholders may choose to sell their bonds at the market at a discount and effectively unlock the liquidity.</mark>


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