Droplit Bonds (LBOND) primary job is to help incentivize changes in LIT supply during an epoch contraction period. When the TWAP (Time Weighted Average Price) of LIT falls below 1 BUSD, LBONDs are issued and can be bought with LIT at the current price. Exchanging LIT for LBOND burns LIT tokens, taking them out of circulation (deflation) and helping to get the price back up to 1 BUSD. These LBOND can be redeemed for LIT when the price is above peg in the future, plus an extra incentive for the longer they are held above peg. This amounts to inflation and sell pressure for LIT when it is above peg, helping to push it back toward 1 BUSD. Contrary to early algorithmic protocols, LBONDs do not have expiration dates. All holders are able to redeem their LBOND for LIT tokens as long as the Treasury has a positive LIT balance, which typically happens when the protocol is in epoch expansion periods.