Karma Bond mechanics
- 1.A user bonds LP tokens (e.g. Token X/stable coin).
- 2.LP tokens go to the Karma Bond contract and are distributed to the corresponding protocol treasury contract.
- 3.The Karma Bond contract receives the protocol token at a discount from the protocol treasury.
- 4.The discounted protocol tokens are issued to the user based on the vesting period (e.g. 5 days).
- 5.The Karma Bond service charges a 3.3% fee on the protocol token pay-out.
- 6.The fee is sent to the Karma Finance Treasury.