TULIP Bonds (BUD) main job is to help incentivize changes in TULIP supply during an epoch contraction period. When the TWAP (Time Weighted Average Price) of TULIP falls below 1:1 ROSE, BUDs are issued and can be bought with TULIP at the current price. Exchanging TULIP for BUD burns TULIP tokens, taking them out of circulation (deflation) and helping to get the price back up to peg. These BUD can be redeemed for TULIP 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 TULIP when it is above peg, helping to push it back toward 1 TULIP to 1 ROSE ratio.