📈Bonds

For 400 days, a fixed amount of 10,000,000 MANGO tokens are added daily to the bond pool, which becomes available for purchase. Through bond purchases, users can buy MANGO tokens at a discounted price as a limit ask order selling MANGO for USDC. The MANGO tokens being sold in the limit order are issued by the Mango Treasury. The USDC received from the bond purchase is returned to the Mango Treasury and distributed to MANGO token holders as dividends.

Users can select a bonus between 5% and 15% when purchasing bonds. Depending on the bonus selected, the limit order will be set 5-15 ticks above the lowest open order placed through bond buying. If a user cancels their limit order, they will receive the USDC proceeds of what has been already filled, but the remaining MANGO tokens will be returned after a 20% fee, which will burn MANGO tokens. Alternatively, they can wait until their order is filled to receive the USDC proceeds without any fee.

Example

Suppose a user wants to purchase MANGO tokens at a discounted price by buying bonds from the bond pool. The user decides to invest 100 USDC and chooses a bonus of 7%. The 100 USDC used to purchase the bond is sent to the Mango Treasury, and the user is given a limit order selling MANGO tokens.

As per the current market price, a market bid order for 100 USDC can buy 100 MANGO tokens. Since the user invested 100 USDC, they are entitled to 107 MANGO tokens (7% bonus included) in the form of a limit ask order selling MANGO tokens for USDC. The limit ask order is set 7 ticks above the lowest open order placed through bond buying, which means if the lowest open order at that time is 1 USDC per MANGO token, the user's limit order will be set at 1.07 USDC per MANGO token.

If someone buys all the user's MANGO tokens at the set price of 1.07 USDC per MANGO token, the user will receive 114.49 USDC from the sale, up nearly 14.5% from their initial investment. If the user cancels their limit order before it's filled, they will receive the USDC proceeds (if the order was partially filled), but the remaining MANGO tokens not yet filled will be returned with a 20% fee that will burn MANGO tokens.

It's worth noting that the user won’t own any MANGO tokens if they wait for their order to be filled since they will only receive the USDC proceeds from selling the MANGO tokens. The limit ask order selling MANGO tokens essentially sells more than what could have been bought with 100 USDC.