# How It Works

## The Mechanism

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{% step %}

### You deposit USDT

You deposit USDT to the bond contract.
{% endstep %}

{% step %}

### Contract takes your USDT

The bond contract receives your USDT and begins the bonding process.
{% endstep %}

{% step %}

### Contract pairs USDT with PRO from treasury

The contract uses PRO from the protocol treasury to pair with your USDT.
{% endstep %}

{% step %}

### LP token created (USDT/PRO pair)

A liquidity provider (LP) token representing the USDT/PRO pair is minted.
{% endstep %}

{% step %}

### LP token sent to black hole (permanently locked)

The LP token is sent to a black hole address and permanently locked.
{% endstep %}

{% step %}

### You receive discounted PRO over vesting period

You receive PRO tokens at a discount, released to you according to the bond's vesting schedule.
{% endstep %}
{% endstepper %}

## What Happens to Your USDT

Your USDT doesn't sit in a vault. It becomes part of the protocol's permanent liquidity:

1. **Paired** — Combined with PRO to create LP tokens
2. **Locked** — LP sent to black hole address
3. **Permanent** — Cannot be withdrawn by anyone, ever

You're not lending. You're selling your USDT to the protocol permanently.

## What You Receive

In exchange, you get PRO tokens at a discount:

* **Discount:** 75%–100% of market price (depending on period and conditions)
* **Vesting:** Linear release over your bond period
* **Rebase:** Your vesting PRO earns rebase during vesting

## Example

Market price: $100 per PRO\
Bond discount: 85%\
Your cost: $85 per PRO\
You bond: $1,000 USDT\
You receive: \~11.76 PRO (vested over bond period)

Plus rebase earnings during vesting.

## Vesting Schedule

PRO releases linearly:

| Day | Cumulative Release (90-day bond) |
| --- | -------------------------------- |
| 0   | 0%                               |
| 30  | 33%                              |
| 60  | 67%                              |
| 90  | 100%                             |

You can claim released PRO anytime.

## Why the Protocol Wants This

| Protocol Gets             | You Get               |
| ------------------------- | --------------------- |
| Permanent liquidity       | Discounted PRO        |
| Deeper trading pool       | Rebase during vesting |
| No mercenary capital risk | Fixed entry price     |

Win-win: Protocol gains permanent infrastructure, you gain discounted entry.

## Irreversibility

{% hint style="danger" %}
**Bonds cannot be cancelled or reversed.**

Once executed:

* Your USDT is converted to LP
* LP is locked in black hole
* Vesting schedule begins
* No refunds possible

Understand this before bonding.
{% endhint %}

## Comparison: Bond vs Buy

| Factor           | DEX Purchase | Bond        |
| ---------------- | ------------ | ----------- |
| Price            | Market       | Discounted  |
| Access           | Immediate    | Vested      |
| Slippage         | Possible     | None        |
| Protocol benefit | None         | Creates POL |
| Complexity       | Simple       | Moderate    |

## When to Bond

Consider bonding if:

* You have a long time horizon
* Current discount is attractive
* You want to support protocol liquidity
* You can wait for vesting

Consider DEX if:

* You need immediate access
* Discount is minimal
* You prefer simplicity

## Next

* [Bond Types](broken://pages/b545457a5b43b91297c87974c28b98821147c50b)
* [Discount Mechanics](broken://pages/e7a039b4713c920dbdb92b2443791837108c5d1b)


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