# Foundry Bonds are unique tokens that can only be purchased here at GoldMint Finance in our Foundry section. They can be utilized to help stabilize the $GLDM price around peg (1 troy gram of gold) by reducing the circulating supply of $GLDM if the TWAP (time-weighted-average-price) goes below peg (1.01). When you purchase a bond, you are burning your $GLDM in return for $BGLDM. If $GLDM's TWAP is between 1.00 and 1.01, neither $BGLDM nor $GLDM will be issued in the Foundry, and if $GLDM's TWAP is below 1.01, then you can exchange $GLDM for $BGLDM in a 1:1 ratio. $BGLDM (bond tokens) are available for redemption when $GLDM goes above peg or 1.01 TWAP. Redemption will be more profitable when above peg to encourage redemption. $BGLDM can be purchased only during contraction periods when TWAP of $GLDM is below 1.01. Every new epoch on contraction periods, $BGLDMs are issued in the amount of 3% of the current $GLDM circulating supply, with a max debt amount of 35%. This means that if bonds reach 35% of the circulating supply of GLDM, no more bonds will be issued. $BGLDMs don't have an expiration date, so you can view them as an investment on the protocol because in the long-term you get benefits from holding bonds. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://goldmintfi.gitbook.io/whitepaper/main-protocol/actively-participating-in-the-protocol/foundry.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.