Invictus DAO, launched 11/9/21, is a decentralized reserve currency built on Solana, a fork of the popular $OHM built on Ethereum.
If you care to understand any of this further DYOR. This is not financial advice.
In my previous Invictus stories I’ve covered how to buy some Solana & onramp to $IN and how Dynamic Rebasing works. Today you’re going to learn how bonds affect the $IN protocol. I frequently see the question that goes “Should I buy bonds or just stake my $IN?” — the short answer is that it depends.
- It is better to purchase bonds when swapping SOL for $IN so long as the bond discount is positive. You just get a discount off of the market price and this protects buyers from slippage. This is supposed to be an incentive new market entrants or previous buyers scooping up more $IN at a discount.
- If the bond price raises high enough it is actually beneficial short term for $IN holders to purchase a bond with the highest discount, claim 2–3 times a day over the 5 day vesting period and stake right after you claim each time.
Over the long term, selling $IN to buy bonds is bad for the protocol, thereby bad for $IN holders. Un-staking $IN and selling it to buy a bond, claiming vested bonds over 5 days then staking again destroys the game theory behind any decentralized reserve currency.
We won’t dive fully into the game theory behind Decentralized Reserve Currencies — look further into Nash Equilibrium if you’d like to know more.
$IN holders have three actions that can be taken
- Stake — (3,3). This action is worth 6 points. Everyone wins.
- Bond — (3,1), (1,3) & (1,1). This action is worth 4 or 2 points. One wins, the other loses.
- Sell — (1,-1), (-1,1) & (-3,-3). This action is worth 0 or -6 points. Everyone loses.
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Sol Invictus is the captain of my SOL. Sol Invictus brings me IN, helps me grow, and leads me towards where I must go. You have looked into our (◎,◎) and we have looked back at yours.
$IN is the decentralized reserve currency built on Solana. Are you $IN?
