# Bonds

### What are CBOND (Bonds)?

Bonds are unique tokens that can be utilized to help stabilize CREAM price around peg (1 AVAX) by reducing circulating supply of CREAM if the TWAP (time-weighted-average-price) goes below peg (1 AVAX).

### When can I buy CBOND (Bonds)?

CBOND can be purchased only on contraction periods, when TWAP of CREAM is below 1.

Every new epoch on contraction periods, CBONDs are issued in the amount of 3% of current CREAM circulating supply, with a max debt amount of 35%. This means that if bonds reach 35% of circulating supply of CREAM, no more bonds will be issued.

{% hint style="info" %}
**Note**: CBOND TWAP (time-weighted average price) is based on CREAM price TWAP from the previous epoch as it ends.  This mean that CREAM TWAP is real-time and CBOND TWAP is not.
{% endhint %}

### Where can I buy CBOND (Bonds)?

You can buy CBONDs if any are available, through the Maintenance tab on our app, anyone can buy as many CBONDs as they want as long as they have enough CREAM to pay for them.

{% hint style="info" %}
**Note**: There is a limited amount (3% of CREAM current  circulating supply) of available CBONDs per epoch while on contraction periods, and are sold as first come first serve.
{% endhint %}

### Why should I buy CBOND (Bonds)?

First and most important reason is Bonds help maintain the peg, but will not  be the only measure use to keep the protocol on track.

CBONDs don't have a expiration date, so you can view them as a investment on the protocol, because longterm you get benefit from holding bonds.

#### Incentives for holding CBOND

The idea is to reward CBOND buyers for helping the protocol, while also protecting the protocol from being manipulated from big players.

So after you buy CBOND using CREAM, you get 2 possible ways to get your CREAM back:

1. Sell back your CBOND for CREAM while peg is between 1 - 1.1 (1 AVAX) with no redemption bonus. This to prevent instant dump after peg is recovered
2. Sell back your CBOND for CREAM while peg is above 1.1 (1 AVAX) with a bonus redemption rate

{% hint style="info" %}
**Note**: The longer you hold, the more both the protocol and you benefit from Cbonds.
{% endhint %}

#### Take note of the following assuming the value of AVAX is 60 USD:

{% hint style="success" %}
Example:

1. When CREAM = 50 USD, burn 1 CREAM to get 1 CBOND (CBOND price = 50 USD)
2. When CREAM = 72 redeem 1 CBOND to get 1.105 CREAM (CBOND price = 81.49) 
   {% endhint %}

### When can I swap CBOND for a bonus?

CBOND TWAP (time-weighted average price) is based on CREAM price TWAP from the previous epoch as it ends.  This mean that CREAM TWAP is real-time and CBOND TWAP is not. In other words, you can redeem CBOND for a bonus when the previous epoch's TWAP > 1.1.


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