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Introduction
Welcome to the PegHub+ Advanced Docs! Here you will find documentation for current and future Seigniorage protocols under the PegHub umbrella! If this is your first time here, please take some time to read through this documentation before you begin using any of the PegHub+ Advanced protocols. This documentation is intended to take you through the entire process of how to get started using any of the PegHub+ Advanced Protocols to earn stable, high yields that are only possible through the power of DeFi, but with the stability and security of exposure to tokens pegged to BTC, DOT, ADA, ATOM, BNB, BUSD, AVAX, SOL, LINK and more! Let's dive in!
The PegHub+ Advanced Protocols are based upon the work of an accumulation of TOMB finance forks over the last few months. The project is run and lead by the doxxed team who brought us BOMB Money, lead by CEO Aaron Shames! We have taken the best parts from all of the best forks and combined them into one polished, final product!
This project would certainly not be possible without the work of the tomb.finance team. Their project being fully open source and developed exceptionally well made it a pleasure to work with, and we would not be here today without their efforts, so we want to give a special thank you to them, and other protocols, for that.
Our multi-token protocols currently consists of many tokens, and each play a critical role in how the protocol works to maintain peg:
bitBOMB
CZPegs
SnowPegs
PolyPegs
- bitBTC Tokens ($bitBTC) - The bitBTC token is algorithmically pegged to BTC at a ratio of 10,000:1. This means that if BTC was $50,000, bitBTC would be worth $5.
- bitDOT Tokens ($bitDOT) - The bitDOT token is algorithmically pegged to DOT at a ratio of 1:1. This means that if DOT was $15, bitDOT would also be $15.
- bitADA Tokens ($bitADA) - The bitADA token is algorithmically pegged to ADA at a ratio of 1:1. This means that if ADA was $5, bitADA would also be $5.
- bitATOM Tokens ($bitATOM) - The bitATOM token is algorithmically pegged to ATOM at a ratio of 1:1. This means that if ATOM was $20, bitATOM would also be $20.
- bitBTCbond / bitDOTbond / bitADAbond / bitATOMbond - The Bond version of all the main tokens, these are used to help incentivize main token buys during contraction periods (below 1.00 peg).
- CZbomb Tokens ($CZbomb) - The CZbomb token is algorithmically pegged to bitBTC at a ratio of 1:1. To add, bitBTC is pegged 10,000:1 to BTC. E.G - If BTC is $50,000, bitBTC is $5, CZbomb is also $5 (if both tokens are at 1.00 peg)
- CZbnb Tokens ($CZbnb) - The CZbnb token is algorithmically pegged to BNB at a ratio of 1:1. This means that if BNB was $400, CZbnb would also be $400.
- CZemp Tokens ($CZemp) - The CZemp token is algorithmically pegged to EMP at a ratio of 1:1. To add, EMP is pegged 4,000:1 to ETH. E.G - If ETH is $4,000, EMP is $1, CZemp is also $1 (if all tokens are at 1.00 peg)
- CZshare Tokens ($CZshare) - The CZshare tokens are used as a reward token in the farms as well as being stakable in the boardrooms in order to control supply expansion. CZshares are also the governance token used to vote on protocol specific decisions.
- BondBOMB / BondEMP / BondBNB / BondBUSD - The Bond version of all the main tokens, these are used to help incentivize main token buys during contraction periods (below 1.00 peg).
- snowAVAX Tokens ($snowAVAX ) - The snowAVAX token is algorithmically pegged to AVAX at a ratio of 1:1. This means that if AVAX was $200, snowAVAX would also be $200.
- snowSOL Tokens ($snowSOL ) - The snowSOL token is algorithmically pegged to SOL at a ratio of 1:1. This means that if SOL was $400, snowSOL would also be $400.
- snowLINK Tokens ($snowLINK ) - The snowLINK token is algorithmically pegged to LINK at a ratio of 1:1. This means that if LINK was $50, snowLINK would also be $50.
- snowSHARE Tokens ($snowSHARE) - The snowSHARE tokens are used as a reward token in the farms as well as being stakable in the boardrooms in order to control supply expansion. snowSHARE are also the governance token used to vote on protocol specific decisions.
- snowAVAXbond / snowSOLbond / snowLINKbond - The Bond version of all the main tokens, these are used to help incentivize main token buys during contraction periods (below 1.00 peg).
- polyMATIC Tokens ($polyMATIC) - The polyMATIC token is algorithmically pegged to MATIC at a ratio of 1:1. This means that if MATIC was $5, polyMATIC would also be $5.
- polySHARE Tokens ($polySHARE) - The polySHARE tokens are used as a reward token in the farms as well as being stakable in the boardrooms in order to control supply expansion. polySHARE are also the governance token used to vote on protocol specific decisions.
The PegHub+ Advanced Protocols work through a synergistic design of unique tokens and mechanisms that create an automatic, self-reinforcing system to help maintain the pegs of all the main pairs. Each of these tokens and mechanisms will be explained in further detail within this documentation, but for now let's have a look at a brief overview of how it all works, we will use bitBTC as an example but this applies to all of our pegTokens as well!
- When bitBTC price is over the peg 1.001, new bitBTC are minted by the protocol to inflate the supply in an attempt to drive the price down towards the peg. These new bitBTC are allocated to bitSHARE holders in the bitBTC Boardroom, as a reward for their investment and trust in the protocol. This, in turn, increases the demand for and the value of bitSHARES.
- When bitBTC price is at the peg between 1.00 and 1.00099.., no new bitBTC will be minted, keeping the supply fixed during this time. Since there will be no new supply coming in, the peg will be maintained indefinitely at this point unless there is a shift in demand. More buying pressure during this time will push the price back up above the bitBTC minting threshold. Conversely, more selling pressure will push the price below the peg.
- When bitBTC price drops below the peg 1.00, the protocol will begin to mint bitBTC-BONDs (up to a maximum debt limit). Experienced investors will have the ability to exchange their bitBTC for these bitBTC-BONDs, which they can then redeem for bitBTC at a premium above 1.05 peg in the future. This removes bitBTC from the total supply, applying upward pressure on the price towards the peg. Besides this, investors who believe in the protocol's ability to maintain peg can just buy bitBTC to essentially purchase BOMB (Bitcoin) at a discount to the market. Both of these incentives are intended to create upward pressure on bitBTC's price when under the peg so that the peg can be regained over time.
There are so many different ways you can utilize the mechanisms of the our Advanced Protocols to earn yield. Pick a strategy that is right for you, based upon your own knowledge and experience. Even the most simple and basic of strategies can earn great returns, but feel free to experiment with more complex strategies as you learn how the protocol works!
PegTokens are tokens that are intended to track the price of other Tokens or Coins algorithmically. The ratio for this peg is typically set at 1:1. For Example bitATOM actively tracks this peg via an algorithm, but that does not mean it will be valued at 1:1 at all times as it is not collateralized. PegTokens are not to be confused for a crypto or fiat-backed stablecoin.
The entire design of the PegHub Advanced Protocols is intended to try and maintain this peg as closely as possible, but as it is an algorithmic peg, this will never be a completely stable process. In fact, some of the unique profit-generating opportunities offered by the protocol actually only exist because of these price fluctuations.
To put it simply, there will almost certainly be times when the price of a PegToken is below peg. This is a natural part of the process, and opens up opportunities for active investors/traders to "buy the dip" and help support the protocol by regaining peg, while also profiting from the discounted price.
When the protocol is healthy and stable, the price of our PegTokens will likely look similar to above, with price fluctuating above and below peg as the mechanisms of the protocol work to influence supply and demand and maintain an average price around the peg.
Keep this in mind when developing your strategies and when taking a more active role in the protocol.
Last modified 1yr ago