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

1. Bonded assets will often be used to service the junior tranche in the yield aggregator, therefore new assets will be accepted alongside new vaults

2. 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.

3. 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

4. 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.