# Bond rates under the YFI protocol **URL:** \ **Category:** General Chat\ **Created:** [5 September 2020 14:28 UTC](https://gov.yearn.fi/t/bond-rates-under-the-yfi-protocol/4833 "2020-09-05T14:28:29Z")\ **Posts on this page:** 6\ **Page:** 1
**Author:** ![jmylibby](https://avatars.discourse-cdn.com/v4/letter/j/cdc98d/32.png) [@jmylibby](https://gov.yearn.fi/u/jmylibby)\ **Post date:** [5 September 2020 14:28 UTC](https://gov.yearn.fi/t/bond-rates-under-the-yfi-protocol/4833/1 "2020-09-05T14:28:29Z")
Hello, I am new to crypto and have been wondering how I can contribute. I don’t understand why yearn could look to release a form of an issuance bond out that has a considerably lower APY at a fixed rate to hedge other market risks. From researching, I see this bond market currently in crypto is very bad, and I have an idea to put together a corporate issuance bond from yearn. I like to call it a Protocol bond. I think there is a way to do this. Introduce a uniquwe bond market and crypto and secure the returns for people. If you think this is even possible or are interested tp hear my proposal, please lmk. I think this could be another layer for both yearn and in the larger picture, crypto. ---
**Author:** ![CarlosDanger](https://dub1.discourse-cdn.com/flex013/user_avatar/gov.yearn.fi/carlosdanger/32/26_2.png) [@CarlosDanger](https://gov.yearn.fi/u/CarlosDanger)\ **Post date:** [5 September 2020 22:44 UTC](https://gov.yearn.fi/t/bond-rates-under-the-yfi-protocol/4833/2 "2020-09-05T22:44:10Z")
This is a great idea, I would love to see you develop this further. Do you need me help? I also have some insurance contacts that I’ve been discussing ILS crypto products with. ---
**Author:** ![cnumber](https://avatars.discourse-cdn.com/v4/letter/c/ecb155/32.png) [@cnumber](https://gov.yearn.fi/u/cnumber)\ **Post date:** [6 September 2020 04:17 UTC](https://gov.yearn.fi/t/bond-rates-under-the-yfi-protocol/4833/3 "2020-09-06T04:17:37Z")
Think Yearn would be in a great place to do something like this. Curious to hear ur proposal. Especially if it could be used as a hedge. ---
**Author:** ![jmylibby](https://avatars.discourse-cdn.com/v4/letter/j/cdc98d/32.png) [@jmylibby](https://gov.yearn.fi/u/jmylibby)\ **Post date:** [6 September 2020 15:10 UTC](https://gov.yearn.fi/t/bond-rates-under-the-yfi-protocol/4833/4 "2020-09-06T15:10:06Z")
I think that’s the thought. It could maybe be a safeguard hedge as well as introduce a strong framework for a tradeable bond market into crypto. ---
**Author:** ![RickyMorninstar](https://dub1.discourse-cdn.com/flex013/user_avatar/gov.yearn.fi/rickymorninstar/32/3638_2.png) [@RickyMorninstar](https://gov.yearn.fi/u/RickyMorninstar)\ **Post date:** [13 January 2021 17:27 UTC](https://gov.yearn.fi/t/bond-rates-under-the-yfi-protocol/4833/5 "2021-01-13T17:27:00Z")
Inspired by Basis and its predecessors, a multi-token protocol that consists of three tokens: (the algorithmic stablecoin), Shares (or sBDO, which holders can claim BDO inflation when the network expands), and r Bonds (or, which can be purchased at a discount rate when the network is in contraction and can be redeemed for BDO when the network comes to its deflationary phase and price goes below 1$). **Below is the explanation of how Dollar mechanisms work:** _trades below the $1 target price_ When the price is below the target price of $1, token holders can purchase Dollar Bonds with an extra discount, and Bonds are burnt to reduce the circulating supply when users redeem Dollar with a 1:1 ratio. In case of redemption, an amount of BDO will be minted to equal the Dollar Bonds redeemed. Important to note is that Bonds have no expiry after purchase. _trades above the $1 target price_ When the price is above the 1$ peg, the token supply will have to expand to push it back down to 1$, and the contract will allow the redemption of the Dollar Bonds. When Dollar’s price continues trading above the $1 target price after bond redemption, the contract mints an appropriate amount of new BDO and distributes it to the Boardroom Stakers. ---
**Author:** ![dudesahn](https://dub1.discourse-cdn.com/flex013/user_avatar/gov.yearn.fi/dudesahn/32/4350_2.png) [@dudesahn](https://gov.yearn.fi/u/dudesahn)\ **Post date:** [14 January 2021 00:21 UTC](https://gov.yearn.fi/t/bond-rates-under-the-yfi-protocol/4833/6 "2021-01-14T00:21:20Z")