KB is the bond within the KBTC system, used when the exchange ratio between KBTC and BTC falls below 0.95 (1-hour weighted average price). Users can opt to convert KBTC at a rate of 0.95 squared to KB, thus arbitraging the difference. This enhances the overall stability of the algorithmic stablecoin system. Between 0.95 and 1, the system relies on bonds to maintain balance.
