> For the complete documentation index, see [llms.txt](https://openx.gitbook.io/openx-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://openx.gitbook.io/openx-docs/protocol-overview/bonds-and-usdopen-mint.md).

# Bonds and $OPEN mint

**Liquidity Bonds**

OpenX offers two main types of bonds for minting $OPEN tokens: liquidity bonds and reserve bonds. Liquidity bonds are purchased by users using the OPEN/USDT LP pair, with the protocol acquiring ownership of the LP

The protocol calculates the risk-free value (RFV) based on the purchased amount of $OPEN, and users receive a corresponding percentage of discounts.

**Advance LP bonds**

RFV = (LP / Total LP) \* 2sqrt (constant product) {constant product is the constant product of this LP}

Execution Price = RFV / Premium {Premium ≥ 1}

Premium = 1 + (debt rate \* BCV) 

{BCV is the inflation rate determined by the protocol}

{Bonds Outstanding: Number of outstanding bonds}

Debt ratio = Outstanding bonds / Open US dollar supply

**Return On Investment of LP bonds** 

ROI = Opening trading price \* Executing Price LP actual price −1

ROI = OPEN trading price \* RFV LP actual price∗ Premium−1

**Reserve bond**  

Users can purchase reserve bonds using whitelisted tokens (i.e. USDT, USDC, WBTC, ETH, UNI) to mint $OPEN tokens. These tokens become owned by the protocol after purchase. Therefore, users can obtain more $OPEN compared to direct purchases from the market.

Reserve bonds offer discounts to users proportionally and have a 5-day vesting period. Once their vesting period expires, users will receive their $OPEN tokens, and this process is irreversible. When users purchase reserve bonds using USDT LP, the protocol does not need to assess the risk-free value and will mint 100% $OPEN based on the received funds.

For example, if a user holds $2,000 worth of USDT, they can use this USDT to purchase reserve bonds to mint $2,000 worth of $OPEN (calculated at a $OPEN support price of $1).

The discount for individual tokens in a non-stablecoin pool is affected by the weight of the pool. When the actual weight exceeds the target weight, it means the value of tokens in the pool has exceeded expectations. Therefore, the discount for minting $OPEN will be reduced.