Recycled Bonds and Excess Mint

Flor Garden features a couple new additions to the traditional bonding model to further benefit the protocol in growing its reverse assets.

Recycled Bonds

Recycled bonds in the garden offer FLOR that was already minted and accumulated in the treasury from vesting penalties. This approach further grows treasury assets without inflating the FLOR supply and causing dilution. The process for selling these recycled bonds mirrors that of traditional bonds.

Vesting Penalty

Bonds purchased in the Garden vest linearly over five days. Users opting to claim their FLOR before the completion of the vesting period incur a penalty, forfeiting any unvested FLOR to recycled bonds.

For instance, should a user redeem a 1000 FLOR bond paid in USDB after four days, they receive 800 FLOR (80%), with the remaining 200 FLOR (20%) redirected to the treasury for recycling into future bonds. Importantly, users are not refunded the original tokens used for the bond purchase.

The vesting penalty system enhances the protocol by:

1. Boosting the Reserve Floating Value (RFV) of FLOR through generated surpluses.

2. Allowing the repurposing of forfeited FLOR into future bonds via the recycled bonds mechanism, further bolstering treasury assets.

Excess Mint

When users purchase a bond from the Garden, an additional 3% of FLOR is generated and immediately exchanged for YES, which is then deposited into the treasury. There are no extra charges for users beyond the initial bond purchase price.

For each bond transaction, the protocol creates an extra 3% of FLOR, leading to a total of 103% FLOR being minted. Out of this total, users will receive the equivalent of 100% in FLOR value for their payment, with the surplus 3% being swapped to YES and directed to the treasury.