Protocol Components and Bonding

Overview of Protocol Components The OpenFi protocol is composed of several core modules that work together to form a sustainable, decentralized, and compoundable bond-financial system. The overall architecture is based on on-chain asset management, with Protocol-Controlled Value (PCV) and Protocol-Owned Liquidity (POL) serving as the core assets to support value, combined with bond issuance and staking mechanisms to drive continuous accumulation and internal circulation of protocol funds.

Core modules include:

• Bond Market Mechanism (Bonding)

• Automatic Compounding System (Rebase)

• Protocol-Controlled Value (PCV)

• Protocol-Owned Liquidity (POL)

• Decentralized Governance System (DAO)

These modules are independent yet complementary, forming a complete financial flywheel.

Bond Market Mechanism (Bonding) The OpenFi bond mechanism allows users to purchase $OPEN at a discounted price, thereby injecting assets into the protocol’s treasury.

-Bond Mechanism Overview:

• Users inject stablecoins, LP tokens, or other assets into the protocol;

• The protocol mints a certain number of $OPEN tokens and sells them at a discount;

• Users receive the tokens in installments over 5 days;

• The protocol receives assets into the treasury, realizing value accumulation.

-Value of the Bond Mechanism:

• Low-Cost Financing for the Protocol: Exchange future tokens for current assets;

• Accumulating PCV and POL: Strengthening the protocol's risk resilience;

• Optimized Token Distribution: Avoid reliance on airdrops or inflationary token issuance.

The bond price is determined by supply and demand and protocol parameters, and its price model is as follows: Bond Price = RFV / Premium Premium = 1 + (debtRatio * n) RFV = 2 * sqrt(constantProduct) * (LP / totalLP)

This mechanism allows OpenFi to grow continuously without relying on external investment.