QuantBonds
Note that "QuantBonds" (QBs) are not currently implemented in the QuantDAO protocol. They are a hypothetical future feature being considered for integration, subject to further development, testing, community approval, and regulatory considerations.
Taking part in QuantDAO's operations using QuantBonds is a straightforward way for holders or non-holders to piggyback on the DAO's actions with somewhat indirect participation. While the issuance of QBs in excess can result in an inflationary effect, increasing the supply of $QD in extreme scenarios can be beneficial to overall DAO health.
QBs work by increasing cycle liquidity, whereby a flexible rate is paid to the lender (buyer) upon bond maturity. QBs are usually very helpful to the DAO's mission of $QD recapture and can generally be seen as a tool for the DAO to collect more actionable liquidity.
Pros and cons of bonds within the QuantDAO protocol
In most scenarios, the deflationary effect for the weekly cycle is positive, where only extreme loss periods are capable of contributing to inflation. Even so, given the probability that most cycles will contribute to deflationary pressure, over time, any inflationary events should remain subtle.
It is important to note, to trigger inflation, QBs had to have been paired with significant loss, which likely may not regularly (if ever) present itself. As such, these inflationary events may become increasingly unlikely as the DAO becomes more forward looking, and, for example, utilizes stablecoins as an investment vehicle during macroeconomic downturns.
Calculator
A spreadsheet can be found here as 'QuantCalc' to perform exploratory calculations.
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