TIDE

Bonds let a project raise treasury or liquidity funding upfront without selling directly into its trading pool; buyers accept delayed token delivery in exchange for a possible discount.

If sales continue while demand weakens, tokens waiting to unlock can accumulate. TIDE ties the allowance for new sales to observed buying, while keeping existing bond delivery dates fixed.

• More net buying: more room for new bond sales, within the other caps.
• Less net buying: less room for new sales, down to a base allowance.
• Confirmed net selling: designated fees and protection reserves become available for capped buybacks.

Projects connect compatible pools to the signal and buyback rules. A bond-sale contract can also use the signal to limit new sales; enabling buybacks for a token does not give it a bond market. Examples use TOKEN and USDC. Each integration defines its sale terms and funding allocations.

A pool purchase and a bond purchase move money to different places. A pool is a trading contract holding both assets. A bond is a direct token sale with delivery at a later date.

Buying a bond does not buy tokens from the pool and does not count as pool demand in the sale-limit calculation. These examples sell from allocated inventory. The hook sets a sale allowance; the project’s token and sale contracts govern how supply is issued.

The project receives capital upfront. The buyer accepts a wait in return for a possible discount. A sale can be quoted, limited and settled without selling the project's inventory directly into its own trading pool.

The wait separates the time of payment from the time the tokens become liquid. It does not remove future selling pressure. The buyer can sell after claiming, and the market price can fall below the bond purchase price before then.

At that illustrative quote, 1M TOKEN costs 2,850 USDC and becomes claimable seven days later under this example’s delivery terms. The 150 USDC difference from the reference value is a purchase discount, not earned income. Actual orders use the integrated bond quote and applicable caps.

TIDE adds a limit to this funding method: recent pool buying helps determine how much new bond inventory may be sold. It changes new sale capacity while existing delivery terms stay fixed.

The project receives the payment through its bond-sale contract. It defines the destination before the sale. TIDE does not prescribe one treasury split for every project.

A project raising working capital and a project acquiring liquidity can use the same sale-limit rule. Their proceeds can go to different destinations. Bond funding remains separate from product revenue and from TIDE’s fee-funded buyback budget.

Token bonds are an established funding mechanism. Olympus used them to acquire reserve assets and liquidity. Bond Protocol made bond markets available to other projects. The useful precedent is capital paid upfront for tokens delivered under agreed terms.

The distinction is the rule connecting pool activity to new bond capacity, together with a separate fee-funded buyback rule. Bonds, vesting and buybacks themselves are established mechanisms.

Net buying is the number of TOKEN tokens traders take out of the pool, minus the number they sell back into it. Protocol trades are excluded. The bond allowance uses average daily net buying over the last three days, with negative net buying treated as zero.

An allowance is permission to sell, not an automatic sale. Buyers still have to purchase the bonds. Existing price guards, order limits and outstanding-delivery limits can further restrict purchases.

BASE is a funding policy choice. For a pool holding 20M tokens, a 1M daily base is 5% of that inventory; a 3M base is 15%. Projects need to size BASE and K against liquidity, expected demand and future unlocks. The calculator values are illustrative.

The reference design also classifies the market using three-day observation periods, called epochs. Two consecutive completed periods beyond the threshold confirm a buying or selling state. A single trade or price move does not switch it.

A period qualifies when its volume meets the pool’s minimum and net flow is at least 5% of total volume; the sign decides buying or selling. A low-volume period, or one under 5%, sets the state to Neutral and breaks the streak. Mixed qualifying directions keep the previous state until two consecutive periods agree. Empty periods count as low volume, and every pool starts in Neutral. Each pool is measured separately; a signal in one pool does not qualify another.

The daily bond allowance and the confirmed market state are separate calculations. The allowance follows the three-day buying measure. The state controls buyback eligibility. There is no state multiplier on bond capacity in v2.

The reference split keeps half of the 1.5% trading tax for treasury reserves in every market state. The other half follows the pool’s state: it goes to staking rewards in Neutral and Net buying, and to that pool’s buyback budget in Net selling. Ownership is fixed when the fee accrues, using the settled state; later state changes never reassign it. LP fees are accounted for separately.

The anti-sandwich protection reserve is the second funding source. The protection mechanism can charge more than the base tax on qualifying trades. Only the excess goes to this reserve. The hook charges the greater of the base tax and the protection amount, rather than adding both in full.

A buyback purchases the pool’s own token and burns it, only while that pool is in Net selling. An authorized executor submits bounded, signed orders; there is no automated keeper. Each pool has its own limits: 5,000 quote units per UTC day and 1,000 per order, with at most 1% slippage against the signed quote after pool and hook costs. Fees that arrive in the pool’s own token are burned directly instead of being sold and bought back, valued at the pool’s 24-hour TWAP and counted toward the same daily limit.

Only fees that accrue during Net selling go to buybacks; rewards already owed to stakers are never redirected. Buybacks never use bond proceeds, top-up or conversion fees, operating cash, LP principal or the other pool’s budget. Protection reserves are isolated per pool and released only after a 48-hour authorization. Unused daily allowance expires, while unused funds stay reserved for later Net selling.

A spending ceiling is not a funding promise. At a 0.75% allocation, 100,000 of eligible trading volume contributes 750 to the buyback budget, before protection-reserve contributions. Retiring purchased tokens does not ensure total supply falls if new issuance exceeds retirements.

A bond buyer agrees to a delivery schedule at purchase. TIDE changes the allowance for subsequent sales. It does not extend the delivery date of a bond already sold.

Claimable means the owner can submit a transaction to receive the tokens. It does not mean an automatic transfer. Earlier bond deliveries can still arrive during a weak market. Projects need to account for those commitments when choosing sale limits.

Assume BASE = 2M, K = 2 and a daily tier cap of 6.2M TOKEN. This example uses a seven-day bond and the fee split above. Inventory and all other purchase checks are assumed sufficient.

The sequence shows the rules, not a price forecast. A large sell can happen before the state changes. Sale allowances need buyers, and buybacks need funds. Neither side of the mechanism creates demand by itself.

Each integration should publish the addresses that receive bond payments, hold token inventory and execute buybacks. Balances, commitments and outgoing transfers let users check where the funds go. The table below lists useful disclosures for an adopting project.

A public balance is not necessarily spendable. Team vesting, LP locks and bond commitments are different restrictions. The display must distinguish them rather than apply the team cliff to every wallet.

The hook supplies the market signal and sale-limit logic. An integration connects that logic to its bond contract, token inventory and fee destinations. These choices must be explicit in the deployed contracts.

Router configuration · spec v1.4, 30 October

These are Router’s final requirements, from its signed contract specification. Other projects can use the same mechanism with their own assets and parameters. They are requirements, not evidence of deployed or audited contracts.

The GEN staking pool loses its trading-tax share only while a pool is in Net selling, and keeps 50% of top-up fees, 50% of burn-conversion fees and 10% of bond proceeds in every state. No new reward token, ROUTER mining or community-allocation subsidy is included.

Each pool buys back its own token: ROUTER from ROUTER/USDG and GEN from GEN/USDG. GEN that is bought back or received in kind is retired together with its service rights, without creating credits or restoring issuance quota.

The bond snapshot is taken at each UTC day boundary from the previous three completed days: aggregate signed ROUTER net buying, floor it at zero, then divide by three. Until three full days of real tracking exist, only BASE applies. Each purchase consumes the allowance once, and unused capacity does not carry over.

BASE can permit sales without net buying. K greater than one can permit additional sales larger than observed net buying. Projects need to test these choices against their unlock schedule, weak demand and attempts to inflate the signal. A fee budget limits how much can be bought back.

This page describes the open-source hook design. Each deployment needs published source, verified addresses and its own security review. The calculator illustrates the formula; it does not read a deployed contract or submit transactions.