That makes a lot more sense in context but the ultimate overarching question remains unanswered
How do both parties benefit from this transaction?
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That makes a lot more sense in context but the ultimate overarching question remains unanswered
How do both parties benefit from this transaction?
The ROI of a bond is determined by market demand for it. If there's a lot of demand for the bond, the ROI will be near 0% or even negative % until demand slows and it self corrects to a higher % ROI that people are willing to bond for.
Essentially, the treasury owns a stack of growing POLYCUB. It's selling it to users who want to buy POLYCUB at (potentially) a small discount. The discounts are likely to be super low but when timed correctly (similar to HBD conversions over 3.5 days).
There's heavy game theory involved. The treasury wins by getting more non-POLYCUB assets which are deployed in 2 ways:
Both of these can be done simultaneously which means stacked yield for the treasury = more POLYCUB bought and deployed for long-term LP incentive pool