Bonding allows users to purchase tokens at a discount in return for a variety of assets.
These assets bolster the Rome treasury, align the Rome balance sheet around target holdings, and allow players to earn $ROME tokens at a discount.
Bonds are a central piece of our treasury growth whenever user demand is heightened. When token price is not appreciating we keep debt very low to avoid staker dilution and negative price outcomes from bonds in times of low demand.
The Bank of Rome seeks to prioritize liquidity, stable assets, and gOHM ownership through adjusting bond capacity appropriately over time.
Oversimplifying the methodology: the current approach to bonding is for scholars to prioritize liquidity any time the ratio of liquidity:market cap slips under 15%. When liquidity to market cap is in excess of target then stable reserves are generally prioritized.