II. Bonding

Bonding is like buying directly from the manufacturer for a discount or getting a loan against an asset that you have. You can bond stablecoins, crypto or real estate HOM-NFTs via the HOM Protocol and you’ll get HOM tokens in return.
When bonding on the HOM protocol, you will receive tokens at a discount relative to what they are trading at on DEX. So for every $1 of assets you bond on the platform, you may receive up to 110% or more of its value in HOM tokens, depending upon the asset you are bonding and the term of the bond. The term can be for a week, a month, a year, or a decade. Bonding can also be conducted in a HELP concurrent closing (more on this below).
Every HOM token is backed up by at least $1 worth of stablecoin. So technically HOM is a wrapped token (what might call a wHOM), but the DAO has voted to use the term “HOM” to describe the token. You can not obtain “naked HOM” tokens as all HOM tokens have to wrap a stablecoin to be released from the treasury.
There are two approved stablecoins used on the HOM Protocol. USDC is the most common form. The other is a synthetic stablecoin called uHOM that is effectively a loan to a HOM token holder requiring them to pay $1USDC to the treasury when they sell their HOM token. HOM token holders that have uHOM are encouraged to sell their HOM to repay their uHOM obligation in USDC once the HOM token price maintains a price level above $20 for an extended period of time.
uHOM may also be used when someone receives a staking award to ensure the token has a value anchored in the treasury.
When buying or bonding a HOM token, $1 of the value is held in the treasury, in the form of USDC, real estate, or uHOM. The balance of the trading price is the value of the “naked HOM” token.
For example, if a HOM token is purchased for $20 USDC, the actual values within the token are:
HOM Token at $20 $1 USDC is wrapped by HOM $19 USDC is the value of the “naked” HOM token In addition to the $1 USDC there may be a large ratio of real estate assets underneath the HOM token. More on this in the section below on NAV and Valuation.
Any revenues from NFT minting, interest from loans, or rental income from a bonded property that can be claimed by the HOM DAO is directed to the HOM treasury. This revenue helps support the creation of more HOM to distribute to stakers.