Summary

Overall Summary: CosmBank Bond Mechanism

The CosmBank Bond Mechanism — through its tri-layer architecture of market-driven pricing, protocol liquidity management, and Treasury asset stratification — achieves:

• Decentralized Price Discovery Eliminates reliance on external oracles by enabling autonomous, market-driven pricing.

• Anti-Cycle Stability Combines Reserve Bonds and Inverse Bonds to hedge against extreme market volatility.

• Maximized Capital Efficiency Leverages the Risk-Free Value (RFV) model to maintain a robust safety margin for Treasury assets.

By participating in the CosmBank bond market, users not only access discounted CSM opportunities but also collectively contribute to the protocol’s long-term economic resilience and decentralized growth.