USD Bonds
USD Bonds are for those who want to keep their principal stable in dollar terms while capturing $MSTR upside through Warrants.
How It Works
You pay: USDT
You receive: Note NFT + Warrant NFT
At maturity: Redeem your Note for USDT (same amount you put in)
Anytime before maturity: Exercise or sell your Warrant for $MSTR upside
Understanding Your Warrant
The Warrant's strike price is set 30-70% above the current $MSTR market price at issuance, depending on the series and maturity length.
Since you subscribe in USDT, your Warrant value is straightforward — it's based directly on your USDT investment amount.
Example
Bob invests $1,000 USDT into USD Bond Series B.
He receives:
Note NFT — Redeemable for $1,000 USDT at maturity
Warrant NFT — Based on $1,000 face value
Series strike price: $15 per $MSTR (50% above $10 market price at issuance)
Bob's Warrant gives him the right to receive: $1,000 ÷ $15 = 66.67 $MSTR
At maturity:
Bob redeems his Note → gets $1,000 USDT back
Bob exercises his Warrant (pays $1,000 USDT) → receives 66.67 $MSTR
Result: Bob kept his dollar principal + gained $MSTR upside.
Who Is This For?
USD Bonds are ideal if you:
✓ Want principal stability in dollar terms
✓ Want $MSTR upside without BTC volatility risk on your principal
✓ Plan to either exercise Warrants or sell them for profit
✓ Prefer not to hold BTC directly
Principal Protection
Your principal is protected by two layers:
1. Series Proceeds
Your USDT is converted to BTC. At maturity, BTC is sold back to USDT to repay you.
2. Insurance Pool
If series proceeds fall short, the USDT Insurance Pool covers the gap.
This dual protection means USD bond holders don't rely solely on BTC price at maturity.
What Happens at Maturity?
If the Insurance Pool is used, stakers are compensated with pre-minted $MSTR (see Insurance Pool for details).
Key Terms
Subscription currency
USDT
Principal repayment
USDT
Warrant valuation
Dollar terms (equal to USDT invested)
Warrant strike
30-70% above $MSTR price at issuance (varies by series/maturity)
Protection
Series proceeds + Insurance Pool
Maturity
Fixed per series (e.g., 6, 12, or 18 months)
Next: Note NFT — your principal claim explained.
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