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- Every time a user Bonds RUG on Rug, he is actually purchasing a bond. This Bonds have different parameters. The BCV allows us to scale the rate at which bond premiums increase. A higher BCV means a lower discount for bonders and more protocol profit. A lower BCV means a higher discount for bonders and less protocol profit.
- The vesting term determines how long it takes for bonds to become fully redeemable. A longer term means lower inflation and lower bond demand.
- Profit Allocations are the only treasury variable. This allows us to choose who receives profits from the protocol.
- There are no variables in the staking contract. RUG and sRUG are always redeemable 1:1, and profits are always distributed equally through rebase.