$Tomb is the first algorithmic stable coin that is pegged to the value of 1 $FTM.
How does @tombfinance makes it happen?
A @milesluci0 ๐งต
How does @tombfinance makes it happen?
A @milesluci0 ๐งต
2. $Tomb maintains its peg through three different mechanisms.
- $Tomb
- $TShare
- $TBond
The interest rates of these three different mechanisms are algorithmically generated to direct liquidity as needed to maintain the peg.
- $Tomb
- $TShare
- $TBond
The interest rates of these three different mechanisms are algorithmically generated to direct liquidity as needed to maintain the peg.
3. When $Tomb is above the peg, Tomb can be converted into $TShare.
Staking TShare prints Tomb inflating it, and pushing its value back down to peg equilibrium
Staking TShare prints Tomb inflating it, and pushing its value back down to peg equilibrium
4. This is incentivized through a staking apr of around 600%. This interest rate is derived through an algorithm to attract a specific amount of liquidity.
5. $Tomb is only printed by $TShare when it is above the peg. If Tomb is below the peg, then users are incentivized to buy $TBonds:
A promise to the user that when Tomb goes above the peg, you can cash in on your TBond for a premium.
A promise to the user that when Tomb goes above the peg, you can cash in on your TBond for a premium.
6. Essentially being able to get back ur Tomb at a guaranteed higher value than if it were just held on its own.
7. TBonds are how $Tomb returns to the value of 1 FTM when below the peg.
Whilst below the peg users can burn their tomb for TBonds, thus reducing the supply and deflating it.
Whilst below the peg users can burn their tomb for TBonds, thus reducing the supply and deflating it.
8. T Bonds cannot be redeemed back for tomb until it gets back over the peg.
If #Tbond is redeemed in between the peg threshold of 1<TBond< 1.01. Then 1 TBond can be redeemed for 1 Tomb.
However, as soon as Tomb is above the peg, TBond can be redeemed for Tomb at a premium.
If #Tbond is redeemed in between the peg threshold of 1<TBond< 1.01. Then 1 TBond can be redeemed for 1 Tomb.
However, as soon as Tomb is above the peg, TBond can be redeemed for Tomb at a premium.
Strategy 1: If $TOMB is OVER the peg:
-Buy $TOMB and pair it with $FTM to provide liquidity
-Stake your TOMB-FTM LP in the cemetery
-Earn $TSHARE rewards
-Stake your TOMB-FTM LP in the cemetery
-Earn $TSHARE rewards
-Take your $TSHARE rewards
-Stake them in the Masonry
-Earn inflationary $TOMB rewards
-Sell half of your earned $TOMB for $FTM, and compound it back into the TOMB-FTM LP.
-Profit!
-Stake them in the Masonry
-Earn inflationary $TOMB rewards
-Sell half of your earned $TOMB for $FTM, and compound it back into the TOMB-FTM LP.
-Profit!
Strategy 2: If $TOMB is UNDER the peg:
-Buy TOMB and exchange it for TBOND.
-If you are LP'ing, you can break the LP to exchange $TOMB for $TBOND,
-Use the remaining $FTM to buy $TOMB to exchange for $TBOND.
-If you are LP'ing, you can break the LP to exchange $TOMB for $TBOND,
-Use the remaining $FTM to buy $TOMB to exchange for $TBOND.
Now you have a big fat bag of $TBOND, and you've also helped bring $TOMB back above peg so that the Masonry can resume printing.
-Once $TOMB is back over peg (above 1.1 TWAP) sell $TBOND for a redemption bonus.
-Once $TOMB is back over peg (above 1.1 TWAP) sell $TBOND for a redemption bonus.
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