Standard Convertible Bonds
A Convertible Bond is first deployed by an
ownerwith the following immutable arguments:
bondSlip(): Slip Object which represent IOUs on the underlying SafeTranche
debtSlip(): Slip Object which represent IOUs on the underlying RiskTranche
penalty(): uint256 representing the penalty fraction that's paid by borrowers redeeming RiskSlips if they do not repay
stableToken(): Token Object which is the repayment stable token for the SafeTranche (ex. USDT, USDC, etc.)
trancheIndex(): uint256 representing the index of the SafeTranche in the underlying ButtonBond
ownerdecides to, they can "activate" the CBB with an
initialPrice. This represents the inital repayment price for the SafeTranche. After the CBB has been activated, the price of the SafeTranche will linearly scale until maturity, after which it will be $1.00.
During the active period, borrowers can repay their loan at the
currentPrice()in order to get their full collateral back in return. Lenders can redeem their BondSlips for any
stableToken()that have been repaid to the Bond Box.
Lending & Borrowing is allowed during the active bond period at the
currentPrice()as long as a "matched" order is provided (i.e. both the collateral and stabletoken is provided by
After maturity, borrowers can still repay their loan for their collateral at the rate of $1.00. If a borrower cannot repay their loan, they can instead redeem each DebtSlip for
1-penaltyRatioof their RiskTranche collateral.
BondSlip holders can redeem their slips for the SafeTranche and any penalty RiskTranche that has been forfeited by borrowers. They can also continue redeeming for stablecoins that have been repaid to the BondBox.