Treasury Bond Model

Market value of bonds

  • The price of the bond is equal to: RFV/Premium

  • RFV is Risk Free Value: RFV=2sqrt(constantProduct)* (LP/totalLP)

  • RFV is the minimum value of x + y at x = y: Premium = 1 + (debtRatio * n)debtRatio = bondsOutstanding/SpaSupply

The Treasury has no perilous value

  • Algorithm: add: epochMint = (TWAP - IV) *supply * ICV * Discount

  • Repo Destruction Algorithm: Recovery: epochBurn = (TWAP - IV) * supply * DCV * Discount

  • TWAP: forward warrant price; IV: $DIA support price; Supply: treasury bond no risk value; ICV: inflation coefficient value; DCV: deflation coefficient value.

Supporting the values of DIA

  • Algorithmically stable design of $DIA: Diamonde's original token, $DIA, is an algorithmic stablecoin, but unlike traditional asset-anchored stablecoins (e.g. USD), $DIA's goal is not price stabilization, but rather to have its intrinsic value backed by a pool of assets within the protocol.

  • Reserves support prices: The minimum value of the $DIA is backed by Treasury assets controlled by the agreement (e.g., DAI, FRAX, etc.), which means that the floor price of the $DIA is safeguarded by the agreement assets to ensure that it does not fall below the value of the Treasury assets.

  • Dynamic supply adjustment: The supply of $DIA is dynamically adjusted according to market demand, increasing liquidity through Treasury Minting Agreements (Minting) when the market price is high compared to the anchored price, and decreasing liquidity through buybacks when the price is below the supported value.

  • Protocol-Controlled Mobility for Nuclear Awareness Innovations (PCV): Diamonde's core innovation is an agreement to own and control liquidity, rather than relying on external liquidity providers, a design that realizes its own economic value through the minting of Treasury Bonds (Bonds). The Treasury Bond Minting Agreement allows users to purchase $DIA at a discount, backed by liquidity pairs (e.g., DIA-USDT-LP) or other assets (e.g., mainstream assets) that are deposited into the treasury and backed by $DIA reserves, while the agreement receives LP tokens to control the liquidity. Liquidity Autonomy: By controlling the LP Autonomous Liquidity Protocol, Diamonde does not need to support high liquidity mining rewards, reducing the risk of market volatility due to external liquidity withdrawals.

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