Bonding parameters overview
As such there will be different assets users will be able to bond to create Coco and subsequently Scoco.
For each asset there is a related downside risk and return profile the DAO inherits. The following table is our initial bonding allocations and reasoning.
Important caveats
Bonded assets will often be used to service the junior tranche in the yield aggregator, therefore new assets will be accepted alongside new vaults
Target steady growth over massive rapid treasury growth at the risk of triggering a downward cascade to RFV requiring divesting the treasury (E.g. SnowbankDAO) we will always target BCV to keep bond discounts close to what can be earned by directly buying CoCo and staking it.
When new assets are added as bonds, we will offer elevated bond discounts on it to quickly bring it to parity with other assets if there is limited downside
The following portions and discounts may need to be scaled accordingly to rebalance the treasury. E.g in case the Coco-matic LP price increases to be worth >50% of treasury and there is sufficient liquidity, it may be temporarily disabled with other bonds being further discounted to limit its growth.
Different assets and allocations
| Asset | Portion of bonds / target treasury % | Purpose |
|---|---|---|
Coco-matic LP | 40% | Create deep liquidity |
Stables | 30% | Junior tranche in yield aggregator |
Long tail crypto assets - (matic, wbtc, weth) | 20% | Junior tranche and upside |
CNC-matic LP | 10% | Support longevity and liquidity of yield aggregator rewards token. Limited portion to hedge against downside. |
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