Deposit ETH or LSTs into the bonds

Depositing ETH or LSTs into Bonds

Users can invest ETH or stETH into Primis Bonds, which are issued as NFTs. When creating a bond, a maturity period ranging between 7 and 365 days must be selected. The reward yield rate of the bond is determined by the chosen maturity period, with longer maturities associated with larger bonuses. Currently, the minimum amount required to create a bond is 0.1 ETH.

• Calculation of Bond Yield Rate: The yield rate starts with the Base Rate, reflecting the current yield rate of the deposited LST. The selected maturity period then adjusts this rate through a bonus multiplier.

Period (Days)	Yield Rate
7	-30%
15	-20%
30	-15%
60	-10%
90	Base Rate
120	+5%
150	+10%
180	+15%
220	+20%
260	+25%
280	+30%
320	+40%
360	+50%

Governance votes can set or change this yield curve, impacting all bonds retroactively.

Setting a Bond Fee

Users can add an optional bond fee when setting up their bonds. This fee is subtracted from the bond's principal amount upon maturity, contributing to the protocol's treasury and supporting the yield tokens of the protocol. Implementing a bond fee enhances rewards in several ways:

• Increased Yield Rate: For each percentage point of fee applied, the bond's yield is augmented by a corresponding multiplier. For instance, a 20% bond fee results in a 1.2x increase in the yield rate.

• Governance Participation: Bond NFT holders who opt for a bond fee gain increased influence in governance decisions and governance token emission votes.

• Multiplier Effect: Setting a bond fee also grants an increased multiplier effect on the Refraction Index's growth, further incentivizing the adoption of bond fees.

Bond Reward

By contributing to the bonds, participants receive PRM tokens, the protocol's yield tokens. These tokens introduce Concentrated Yield Tokens (CYT), offering intensified yield when staked. PRM tokens serve multiple purposes beyond their initial yield capabilities:

• Market Trading: PRM tokens can be traded on the market as yield tokens.

• Rebase Rewards: When staked, PRM tokens qualify for rebase rewards. Staked PRM tokens (sPRM) enable the allocation of the treasury's bond-deposited assets to various investment strategies and liquid staking protocols for LSTs.

This multifunctionality positions PRM tokens as distinctive yield-generating assets, offering not just concentrated yield opportunities but also acting as a universal token for Liquid Staking Power (LSP). This integration of liquidity provision with yield generation creates a unique and robust financial instrument within the Primis ecosystem.