> ## Documentation Index
> Fetch the complete documentation index at: https://docs.hyperstrategy.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Bond Minting and Redemption: HyperStrategy Lifecycle

> A step-by-step walkthrough of minting HyperStrategy bonds with USDT0 and redeeming them at maturity for HSTR or your full USDT0 principal.

Every HyperStrategy bond begins with a USDT0 deposit and ends at maturity with one of two outcomes: HSTR tokens at a favorable conversion rate, or your full principal back in USDT0. Between those two moments, the bond is a live ERC-20 token you can hold, transfer, or trade. This page walks you through the complete lifecycle, from acquiring USDT0 to redeeming at expiry.

## Step-by-Step Lifecycle

<Steps>
  <Step title="Acquire USDT0">
    USDT0 is the stablecoin used across HyperEVM and for now its the only accepted deposit currency for HyperStrategy bonds. You can acquire USDT0 on HyperEVM DEXes or bridge it from another chain. The USDT0 contract address on HyperEVM is `0xB8CE59FC3717ada4C02eaDF9682A9e934F625ebb`.
  </Step>

  <Step title="Visit the Bond Interface and Choose an Active Series">
    Navigate to [bonds.hyperstrategy.com](https://bonds.hyperstrategy.com) and review the currently active bond series. Each series displays its strike price, maturity date, issuance end date, and remaining USDT cap. Select the series whose parameters best match your strategy.
  </Step>

  <Step title="Deposit USDT0 to Mint Bond Tokens">
    Enter the amount of USDT0 you want to deposit and confirm the transaction. You receive Bond ERC-20 tokens proportional to the amount of USDT0 you deposited. These tokens represent your convertible position in the protocol and appear in your wallet like any other ERC-20.
  </Step>

  <Step title="Hold to Maturity or Trade on the Secondary Market">
    Once you hold Bond tokens, you have two options. You can hold them until the maturity date and redeem for one of the two outcomes below. Alternatively, because bonds are standard ERC-20 tokens, they are transferable, even before maturity.
  </Step>

  <Step title="Redeem at Maturity">
    Return to [bonds.hyperstrategy.com](https://bonds.hyperstrategy.com) on or after the maturity date and submit your redemption transaction. The outcome depends on the HSTR market price at maturity.
  </Step>
</Steps>

## Redemption Outcomes

<Check>
  **Either outcome is a win.** Above strike, you convert into HSTR at a favorable rate and walk away in profit. Below strike, you get your full USDT0 principal back. There is no losing scenario, only upside or break-even.
</Check>

<Tabs>
  <Tab title="Above Strike">
    **HSTR price ≥ strike price → you receive HSTR tokens**

    When the HSTR market price at maturity is at or above the bond's strike price, your bonds convert into HSTR. You receive HSTR rather than your original USDT0, capturing the appreciation between the strike price and the current market price.

    **Conversion formula:**

    ```text theme={null}
    HSTR received = USDT deposited ÷ strike price
    ```

    Because you acquire HSTR at the strike price, lower than the current market price, you immediately hold tokens worth more than your original deposit.
  </Tab>

  <Tab title="Below Strike">
    **HSTR price \< strike price → you receive your USDT0 principal back**

    When the HSTR market price at maturity is below the bond's strike price, the conversion does not trigger. You redeem your bonds and receive the exact amount of USDT0 you originally deposited, no fees, no haircut, no loss. Your capital is fully returned.
  </Tab>
</Tabs>

## Full Worked Example

Here is a concrete example that illustrates both scenarios end-to-end.

**Setup:**

| Detail                 | Value         |
| ---------------------- | ------------- |
| Date of bond issuance  | 7/4/2025      |
| HSTR price at issuance | \$1.15        |
| Strike price           | \$1.25        |
| Maturity date          | 8/4/2025      |
| Your deposit           | \$1,000 USDT0 |

One month passes and the bond reaches maturity on 8/4/2025. Here is what happens under each scenario:

<Tabs>
  <Tab title="Above Strike Outcome">
    **HSTR market price at maturity: \$1.30**

    \$1.30 is above the \$1.25 strike price, so your bonds convert into HSTR.

    ```text theme={null}
    HSTR received = $1,000 ÷ $1.25 = 800 HSTR
    Value at $1.30 = 800 × $1.30 = $1,040
    Profit = $1,040 − $1,000 = $40
    ```

    You walk away with 800 HSTR worth \$1,040, a \$40 gain on your \$1,000 deposit.
  </Tab>

  <Tab title="Below Strike Outcome">
    **HSTR market price at maturity: \$1.20**

    \$1.20 is below the \$1.25 strike price, so no conversion occurs.

    ```text theme={null}
    USDT0 returned = $1,000 (full principal)
    Loss = $0
    ```

    You receive your original \$1,000 USDT0 back. No money is lost, no harm, no foul.
  </Tab>
</Tabs>