Deprecation Mode

KIBT is minted and burned such that the total supply is always sufficient to buy out all of the KUMA Bonds NFTs held in the contract. However, in extreme cases, some of the KIBT supply may become inaccessible (e.g. if large amounts of KIBT are hacked or lost to unknown addresses). This could result in KUMA NFTs being locked in the KUMASwap contract. To mitigate this scenario, the DAO can vote to put the KUMASwap contract in deprecation mode where users can buy bonds with stablecoins through voted-on parameters. Since there is a unique KUMASwap contract for each risk category, one deprecated KUMASwap contract for a given risk category does not impact other KUMASwap contracts for different risk categories.

When deprecation mode is activated, the KIBT yield is set to 0 (i.e. all KIBT tokens stop earning interest). After all of the bonds have been bought in the corresponding KUMASwap contract, users can redeem any of their leftover KIBT for stablecoin held in the KUMASwap contract through redeemKIBT(). The KIBTto stablecoin conversion rate is determined by how much stablecoin is held in the KUMASwap contract - e.g. If there's 100k KIBT and 100k stablecoin, each KIBT gives you the right to redeem 1 stablecoin.

Once entered, deprecation mode is irreversible for a given KUMA NFT risk category. After deprecation mode is enabled, sellBond in the KUMASwap contract is disabled; so users who have outstanding KUMA NFTs from the deprecated risk category can only redeem them directly through MCAG.