# Bond Mechanism (deprecated)

**As result of one of the steps taken to go over the TOMB scheme, both $LIONs and $BEARs BOND have been dismissed. Contracts still exist, but we do not supply the web3 interface to interact with them. We discourage everyone thinking about using them.**

~~Before going into the detail of the bond explanation, the team points out that this mechanism is present in the tomb, but that its use is not recommended for some specific reasons.~~

~~The bond itself does not help the peg and does not guarantee a guaranteed return if the peg does not rise above 1.10. Given the nature of our project, it's not that simple for the peg to cross that threshold, so as we develop other more interesting use cases, tokens may be locked into bonds and not take advantage of these additional use cases.~~

~~The bond mechanism is primarily a high-risk investment that makes it possible to obtain a premium upon maturity of a condition.~~

~~If **LION/BEAR** is under peg it is possible to burn your **LION/BEAR**, thus reducing the quantity in circulation, obtaining in exchange a **BOND** (**LBOND/BBOND**) that can be redeemed to get back **LION/BEAR** when one of the two token regains the peg.~~

~~Between 1.01 and 1.09 TWAP you do not get any bonus in redeeming the BOND, however if you have requested the BOND you will want to wait until the value of the TWAP is above 1.1. Once above 1.1 TWAP, you can then exchange your **LBONDS/BBONDS** back for **LION/BEAR** and receive a bonus.~~

~~The greater the TWAP value the greater the bonus. The **LION/BEAR** you will get are taken from the expansion, so as long as there are BONDs in circulation the boardroom will print fewer tokens for TIGER owners.~~

~~It is important to remember that if the peg were never to be regained, the BONDs would have no value, while the **LION/BEAR** could still be worth something even below the value of the peg, therefore the bonus obtainable from the BONDs is justified by the assumption of this risk.~~

~~**If LION is UNDER the peg / If BEAR is UNDER the peg:**~~

1. ~~Buy **LION/BEAR** and exchange it for **LBOND/BBOND**. If you are LP'ing, you can break the LP to exchange **LION/BEAR** for **LBOND/BBOND**, and use the remaining **USDC/WBTC** to buy **LION/BEAR** to also exchange for **LBOND/BBOND**. Now you have a big fat bag of **LBOND/BBOND**.~~
2. ~~Sell **LBOND/BBOND** for a redemption bonus once **LION/BEAR** is back over peg (above 1.1 TWAP).~~

This page was last edited on: December 3rd, 2022

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