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Duet Protocol
  • Duet Protocol
    • Introduction
    • Overview
  • Value Propositions
    • Liquidity Providers
      • Liquidity Providers
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    • Investors
      • Crypto Investors
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    • Third-Party DeFi Protocols
  • Token Economics
    • What is the Duet Token
    • Utilities of DUET Token
    • Token Distribution
    • Governance
  • Functions & User Guides
    • Stablecoin Minter
      • Wallet Configuration
      • Mint dUSD
      • Redeem dUSD
    • Earn
      • Earn User Guide
    • dAssets
      • dAssets User Guide
    • Farm
    • $bDUET
      • Overview
      • How to calculate the value of a $bDUET
      • Duet Open Bond Market
      • Yield to Maturity and Yield Curve
      • Bond As A Service
  • Synthetic Assets
    • dUSD
    • dWTI
    • dXAU
    • dBonds FAQs
  • Roadmap
  • Glossary
  • DUET PRO
    • Architecture
    • DPMM (Proactive Market Making)
    • External Custody
    • Funding Fee
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    • Margin Requirement
    • Mining (AMM Liquidity Mining)
    • List of Markets
  • Library
    • List of Markets
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  1. Functions & User Guides
  2. $bDUET

Duet Open Bond Market

PreviousHow to calculate the value of a $bDUETNextYield to Maturity and Yield Curve

Last updated 3 years ago

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By looking at the , 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.

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.

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.

Bondholders may choose to sell their bonds at the market at a discount and effectively unlock the liquidity.

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