- Edited
As of now if I want to make offset it happens like this: I choose a pool, let's say BCT. The offset event takes BCT from the pool paired with klima and retairs it meanwhile klima token is not burned. Meaning that Klima is backed less with the BCT. -> this puts growing pressure on BCT bonds (once active) and more klima is minted by new bonding -> inflation for klima token.
KIP-31 makes it so that you retaire BCT and equivalent amount of Klima is burned (minus the dao fee) so that the weights of the pool BCT/Klima stays the same.
As of now, If there is small pool (let's say NBO) and I need to make huge retairment on that specific credit, I would need first sell my klima tokens and then swap them to NBO. This would lower the price of Klima token and rise the price of NBO on AMM (slippage) and that would be inefficient. With the new bond I'm covered from that slippage.
Did I get it right?