# The Agora

### The Agora:

Shezmu’s Agora doesn’t function as traditional bond-like instruments typically do within DeFi. Generally, Bonds function as a debt that is repaid over time with interest. The issue here is that said interest brings inflationary pressure. This is due to interest generally being an emission which adds onto the total circulating supply of a protocol. Shezmu strives to be a store of value which means inflation is our enemy. Instead, the Shezmu Team found an innovative solution to rewarding users without the same inflationary effects.&#x20;

Instead of paying interest on top of a principal amount, Shezmu tokens are instead sold below market value at a desired set discount. There are three discount rates which are the following:

* 10% Discounted or 90% Market Value
* 5% Discounted or 95% Market Value
* 2% Discounted or 98% Market Value

<figure><img src="https://2565287092-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F2tXlmIiEU8cCe0B9Ljvu%2Fuploads%2FTTv2qRLT88SISUcVrxT6%2FAgoraFlow.jpg?alt=media&#x26;token=568171c4-dcc9-4e20-9ce7-275923452ff8" alt=""><figcaption></figcaption></figure>

Each of these options has a set lock-up period which is determined by the discount of said period. The lock-up periods are the following:

* 10% Discounted: 3 Weeks or 21 Days
* 5% Discounted: 2 Weeks or 14 Days&#x20;
* 2% Discounted: 1 Week or 7 Days

After the lock-up period expires, users will be credited the full market value for their purchase. Another benefit of purchasing at a discount instead of at market value with interest is a by-product of how percentage changes work. A percentage decrease will require a larger percentage increase in order to return to initial value. Based on this, the true percentage reward from the Agora are the following:

* 10% Discounted: 11.11% True Return&#x20;
* 5% Discounted: 5.26% True Return&#x20;
* 2% Discounted: 2.04% True Return

While your rewards are pending, instead of allowing them to sit idly, users have the ability to burn them in exchange for Guardian NFTs to earn additional tokens / USDC while they are pending during the lock-up period. During this lock-up period, the users will be accruing rewards from the Guardians at a 50% rate, while the other 50% is directed towards the treasury. Similarly to locked up Shezmu, the accrued rewards are also claimable at the end of the lock-up period. Once the  lock-up period is completed, users may claim all pending rewards, and their Guardian NFT will be viewable in their wallet and will begin accruing rewards at the 100% rate.
