APD features policy constants that allow us to optimize the system.


The BCV allows us to scale the rate at which Bargain premiums increase. A higher BCV means a lower discount for Bargain purchasers and more protocol profit. A lower BCV means a higher discount for Bargain purchasers and less protocol profit. The vesting term determines how long it takes for Bargains to become fully redeemable. A longer term means lower inflation and lower Bargain demand.


The DCV allows us to scale protocol buy pressure up or down. A higher DCV means more buy pressure and higher deflation. A lower DCV means less buy pressure and a weaker floor.


Profit Allocations are the only Cave variable. This allows us to choose who receives from the protocol.


There are no variables in the Unity contract. APD and uAPD are always redeemable 1:1, and profits are always distributed equally through rebase.

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