Tokens
Last updated
Last updated
Monster Slayer Cash tokens are designed to be used as a medium of exchange. The built-in stability mechanism in the protocol deterministically expands and contracts the MSC supply to maintain MSC's peg to 1 $BUSD token (which trades close to a single United States Dollar).
Monster Slayer Shares loosely represent the value of the Monster Slayer Cash and trust in its systemic ability to maintain MSC to peg. During epoch expansions (when TWAP - the time-weighted average price of MSC is above the 1 $BUSD peg), the protocol mints MSC and distributes it proportionally to all MSS holders who have staked their tokens inside the boardroom.
Additionally, MSS is used to achieve a completely decentralized on-chain governance where MSS holders have voting rights and, later, the ability to create proposals to improve the protocol.
Monster Slayer Bond determent the changes in MSC supply during both epoch expansion and contraction periods. For starters, the exchange rate for MSC to MSB is always 1:1. When MSC's TWAP falls below 1 $BUSD peg, MSB gets issued and can be bought with MSC at its prevailing price. Doing so takes MSC out of its circulating supply through burning. Bonus for redeeming Bonds to Cash is a ramping up bonus, not a fixed bonus and is capped at 30% maximum.
*Remember, buying MSB using MSC is only available when the price of MSC <1 $BUSD but exchanging MSB to MSC can always be done at any price point.*
Buy MSB: 1 MSC = 1 MSB Redeem MSB: If MSC < $1; ---> 1 MSB = 0.9MSC (10% penalty) If MSC > $1; ---> 1 MSB = [price] MSC (max bonus 30% achieved at $1,3)
Example:
You have 100 dollars.
TWAP price of MSC is 0,8 dollar.
The epoch timer is yet to run out.
You use 100 dollars to buy 100/0,8 = 125 MSC. With 125 MSC you can exchange into 125 MSB.
Later on after the epoch:
You still have 125 MSB from before.
TWAP price of MSC is now 1,3 dollar.
The new epoch is yet to occurs.
You use 125 MSB to exchange for MSC. You will receive 125*1,3 = 162,5 MSC. If you were to sell these 162,5 MSC, you will get 162,5*1,3 = 211,25 dollars.
ROI of buying MSC at 0,8 dollar and selling at 1,3 dollar is 62,5%. ROI of buying MSB at 0,8 dollar and selling at 1,3 dollar is 111,25%.
In the example above, you can see that if you buy MSC when it is low but not exchange it into bonds, you will still have a profit when the price gets back to peg and above but not as much as if you were to buy bond and HODL to sell them at the max bonus.
*To be able to redeem your MSB to MSC, the Treasury must first have some money (MSC) in it. The Treasury will be fill up every epoch during expansion phase (MSC TWAP > $1.01). The amount the Treasury will received each epoch can be calculated by using the following formula:
MSC total supply * Expansion rate * Treasury allocation %
