Market dynamics

How Hex Bonds are priced, and why discounts exist.

Each Hex Bond trades below the HEX it will eventually redeem for. That gap is the market's implied yield — a fixed, HEX-denominated return earned by holding to maturity.

The HEX yield curve

• Longer maturities carry larger discounts — more time value and more duration risk are priced in.
• Plotting the discount of every Hex Bond against its maturity traces a HEX yield curve, whose shape shifts with sentiment and the underlying HEX staking rate.
• Near maturity, arbitrage pulls a Hex Bond's price toward its redemption value, so the discount decays toward zero.

Fixed return, in HEX

Buy a Hex Bond at a discount, hold to maturity, and the difference is yours in HEX — independent of HEX's price in dollars. This is the mechanism behind the "Discount → HEX" column on the dashboard markets table, and the same mechanism that prices Actuator's HTT markets.

What moves the curve

• The HEX staking rate and T-share price.
• Supply of newly minted Hex Bonds at each maturity.
• Liquidity depth in each HB/HEX pool.
• Redemptions and arbitrage as maturity approaches.

On Hex Bond

HBR farm incentives deepen HB/HEX liquidity, which tightens spreads and keeps market prices closer to fair value across the curve. See Farming & emissions.