A Guide for Creating Bonds on Kosmos

Kosmos is a bond marketplace that allows users to create and sell bonds as well as earn rewards in the form of $AMB and $KOS. It is easy to use, provides a liquid marketplace for AirDAO’s ecosystem tokens, and rewards users for selling bonds and interacting with the ecosystem. This guide will cover the process of creating and posting a bond on AirDAO’s Bond Marketplace.

Connecting your Wallet

To use Kosmos, users simply need to connect their wallets and deposit funds. To do this, first navigate over to the “Connect Wallet” button at the top right corner of the screen. 

This will ask you to connect a Metamask or Wallet Connect compatible wallet. Select the wallet you want to use and create a wallet or input your log-in details.

Creating a Bond

To create and post a bond on AirDAO’s Bond Marketplace, you must make sure your wallet is connected. Once you have done that, select the “+ Create New Bond” button in the mid right corner of the page. Selecting this will send you to the bond creation screen where you will be able to select from various settings to fine tune your bond.

Simple Bond Creation Settings

Payout Amount: The total value of the bond upon maturity or redemption. Also select the type of token bond it is.

Quote Token: The specific cryptocurrency required to purchase the bond.

Set Price: The fixed exchange rate determining how much of your payout currency one unit of the quote token will cover.

Vesting Length: The duration for which the bond remains locked before it can be fully redeemed.

Advanced Bond Creation Settings

Auction Type: The total value of the bond upon maturity or redemption.

• FPA (Fixed Price Auction): FPA represents the simplest auction variant. It enables creators to buy/sell a specific token capacity at a quoted price for a defined duration. Similar to a limit order in an order book exchange, the aim of this auction format is to maximize token sales at the predetermined price.
• OFDA (Oracle Fixed Discount Auction): This auction offers a fixed discount to an oracle price for purchasing a targeted amount of tokens. It requires an oracle contract that supports tokens sold in the bond auction.
• SDA (Sequential Dutch Auction): In a Dutch Auction, an initial high price is established for an item (in this scenario, the exchange rate between two tokens). As the auction progresses, the price gradually decreases (decays) over time until the item is bought or reaches a configured minimum price that it cannot fall below.
• OSDA (Oracle Sequential Dutch Auction): The Oracle Sequential Dutch Auctioneer implements a simplified sequential dutch auction pricing methodology which seeks to sell out the capacity of the market linearly over the duration. We do so by implementing a linear decay of price based on the percent difference in expected capacity vs. actual capacity (relative to the initial capacity) at any given point in time. The OSDA allows specifying a base discount from the oracle price and calculates a decay speed based on a target deposit interval and target discount over that interval.

Vesting Type: The total value of the bond upon maturity or redemption.

• Fixed Expiry: In this setting, all tokens purchased by users become unlocked simultaneously after a specified period following the end of the bond auction. Essentially, the vesting duration remains uniform for all users and commences immediately after the bond auction concludes.
• Fixed Term: Under this setting, tokens become unlocked after a selected vesting period from the moment users acquire tokens in bond auctions. In simpler terms, the earlier a bond is purchased, the earlier the vesting duration begins to count down.

Price Discount: Discount applied to the total set value of the bond.

Deposit Interval: The maximum portion of the bond that can be sold within a 24-hour period.

Once you have reviewed the market summary and adjusted your bonds to your satisfaction, you can press the “Review and Confirm” button to complete the bond creation process. This will lead you to another screen where you can review any other details and confirm your bond to be posted on the marketplace. Once confirmed, your bond will be posted and it is now open for anyone to buy!