Validators

Bond Writer Validator (BWV)

Is a 'borrow offer'. A party expresses their intent to issue bonds to a willing buyer, i.e. a party willing to lend them ADA. Locks some prepaid margin, which upon issuance is deposited to the following validator. Worth noting that the offer must be filled completely in order to be accepted.

Open (Position) Validator

Represents an active loan that's successfully been made. It holds in trust the ADA lent out, only allowing interest payments to be made, closing the position or changing the stake key. Its terms are fixed and the borrower may now direct the stake wherever they please, attaching any stake key to the UTxO. If the terms are not met, i.e interest payments not made, an open position becomes closeable by the lender.

Bond Token (BT)

Minting Policy creates the native bond tokens that represent the underlying position it is meant to represent the stake in. As with any other Cardano Native Token, they are freely exchangeable and can be used to interoperate with other protocols. They are always guaranteed to be backed by its face value of 100 ADA each.

Closed (Position) Validator

Holds ADA plus all the interest accumulated during the active time of the bond. Its purpose is to allow redemption of Bond Tokens for their face value plus accumulated interest. In this UTxO the ADA is staked to a predetermined key 'ogLender' (usually the original lender, but can be left as a free variable to be decided by whomever purchases the bond). Upon closing, a few % of the total interest is deposited to the Optim treasury.