bGRQ Token

$bGRQ

$bGRQ is the bond token — available only when $GRQ drops below its peg. It reduces supply during contractions and rewards those who hold through to recovery.

Contract Address:

Coming soon

How $bGRQ Works

Issued During Contraction

Buy $bGRQ with $GRQ when the peg falls below 1.00 BERA.

Supply Reduction Mechanism

Buying $bGRQ burns $GRQ, helping reduce excess supply and restore peg balance.

💸 Redeem During Expansion

When $GRQ returns above peg, redeem $bGRQ for $GRQ — often with a bonus.

Detailed Mechanics

Contraction Phase Mechanics

When GRQ falls below its 1 BERA peg, the protocol enters a contraction phase:

Users can purchase bGRQ bonds at a discount to the current GRQ price
For example, if GRQ is at 0.8 BERA, users might get bGRQ at a 10-20% discount
Each bGRQ purchased burns the equivalent amount of GRQ
This reduces GRQ supply, creating upward pressure on the price
The discount rate adjusts dynamically based on how far GRQ is below peg

Expansion Phase Mechanics

When GRQ returns above its 1 BERA peg, the protocol enters an expansion phase:

bGRQ holders can redeem their bonds for newly minted GRQ
Redemption often includes a premium above the original purchase price
The longer the bond is held, the higher the potential premium
This creates an incentive to hold bonds through contraction cycles
Redemption is processed in a first-in-first-out (FIFO) order

Strategic Considerations

bGRQ bonds represent a strategic opportunity for users who understand the protocol's cycles:

Purchasing bonds during deep contractions can offer significant upside
Bonds act as a form of "protocol insurance" that pays out during recovery
The mechanism creates natural market participants who help stabilize the peg
Advanced users can develop strategies around bond purchase and redemption timing

Summary

$bGRQ is the bond token used to stabilize the system during downturns. It plays a crucial role in the protocol's economic model by providing a mechanism to reduce GRQ supply when the price falls below peg. By incentivizing users to remove GRQ from circulation during contractions and rewarding them during expansions, bGRQ helps maintain the long-term stability of the protocol.

Token Allocation

Supply Model: Dynamic

Initial Supply: 0
Emission: Mintable when GRQ is under peg
Redemption: Only during expansion phases

Unlike GRQ and sGRQ, bGRQ doesn't have a fixed allocation. The supply is entirely dynamic and depends on market conditions. When GRQ falls below peg, users can buy bGRQ with GRQ at a discount, which burns GRQ and helps restore the peg. The amount of bGRQ in circulation is directly tied to the protocol's contraction phases.

*Results may vary. By "may vary" we mean "won't happen."

GRQ Docs