Intelligent Bonding

The Federal Reserve sets rates by committee. IBS sets rates by code. Intelligent Bonding is the algorithmic system that governs IBS supply — expanding when demand is strong, contracting when liquidity thins, always protecting the $1 redemption floor.

Key Takeaways
  • Intelligent Bonding = algorithmic IBS issuance, no human decisions
  • Every bond purchase permanently deepens liquidity — LP burned to Blackhole
  • Three conditions must be met before any new IBS can be minted
  • MCL guarantees every IBS can always be redeemed for ≥$1 USDT
Explore IBS Token Pots Money overview
Bond Purchase

What Happens When You Buy a Bond

Every bond purchase executes the same contract path automatically — no discretion, no exceptions.

01

USDT Split 50 / 50

Your USDT is divided. Half is swapped for IBS (2.5% sell tax applied). Half stays as USDT. Both halves are now ready to enter the liquidity pool.

02

Added to USDT-IBS Pool

Both the swapped IBS and the remaining USDT are added as liquidity to the USDT-IBS pool. An LP token representing this liquidity position is generated.

03

LP Token Burned to Blackhole

The LP token is immediately sent to address 0x000...dead. It cannot be withdrawn. This liquidity is permanently protocol-owned — the pool can only grow, never shrink from bond purchases.

Minting Gate

Three Conditions for Any New IBS

All three must be satisfied simultaneously. Any single failure stops minting — automatically.

01
Sufficient Collateral
USDT-IBS LP must hold enough value to back every new IBS at minimum $1 USD.
02
Sufficient Liquidity
Protocol liquidity depth must be adequate to absorb new supply without destabilizing the peg.
03
Positive Premium Index
Current IBS market price must be trading above its backed value. All three must pass — any failure stops minting.
Control System

Four Mechanisms, One Goal

AEM, RBS, YRF, and MCL work in concert to manage supply, stability, and solvency.

AEM

Algorithm Emission Mechanism

Core engine. Executes all IBS minting and burning automatically based on Premium Index and liquidity signals. No manual intervention ever required.

RBS

Range Bounded Stability

Price stabilizer. Buys pressure? RBS mints IBS into pool, absorbs USDT. Sell pressure? RBS injects USDT to buy back and burn IBS. Keeps market price near backed value.

YRF

Yield Repurchase Facility

Protocol revenue put to work. Trading fees and ecosystem income automatically buy back and burn IBS — continuous deflationary pressure from real economic activity.

MCL

Max Circulation Limit

Solvency guarantee. When total treasury value ÷ IBS supply approaches $1, protocol reduces minting rate, lowers bond discounts, eventually halts new issuance entirely.

Supply Dynamics

Inflation and Deflation

The full cycle — when IBS expands and when it contracts.

Direction Trigger Mechanism
Expansion High Premium Index (price > backing) AEM mints new IBS; bonds issued at higher APR to attract capital
Contraction Liquidity withdrawal or MCL threshold Minting rate declines; YRF burns supply; APR decreases

The $1 floor is a hard constraint enforced by the MCL. IBS is not a stablecoin — it is designed to grow above $1 — but it can never fall below. Every IBS can always be redeemed for at least $1 USDT.

FAQ

Bonding Questions

What buyers ask before purchasing IBS bonds.

Frequently Asked Questions

01 What is Intelligent Bonding?
Algorithmic IBS issuance. Supply mints and burns automatically based on on-chain signals (price, collateral, liquidity). No human controls it.
02 What happens to my USDT when I buy a bond?
50% swaps to IBS, 50% stays USDT → both added to USDT-IBS pool → LP burned to Blackhole. Permanent liquidity deepening.
03 What is MCL?
Max Circulation Limit — the $1 solvency floor. When treasury value / IBS supply → $1, minting halts automatically. Hard floor, code-enforced.
04 Can the team stop or override minting?
No. All operations execute by smart contract based on Premium Index and MCL thresholds. No team override.
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