🪦Tomb Forks for Noobs

• There are 3 tokens: $WHALEUSD, $WHALESHARE, $WHALEBOND

• There are 2 main ways to use a tomb fork, the Whale Ocean -or Boardroom- and the farms.

• There is a token that all Tomb forks choose to peg to. Farming Whales pegs to USDC.e

• IF $WHALEUSD is greater than the value of $USDC.e, the Whale Ocean will inflate the supply of $WHALEUSD.

  • This means that if you have $WHALESHARE in the Whale Ocean during an epoch that the TWAP is over 1.01 you will receive $WHALEUSD tokens.

• The farms will always emit $WHALESHARE REGARDLESS of the price action of $WHALEUSD & $USDC.e

• When the supply of $WHALEUSD becomes too inflated, or the demand decreases and the price goes below the value of $USDC.e then the Whale Ocean does not print that EPOCH.

  • The protocol is meant to have expansion and contraction phases to constantly move $WHALEUSD closer to 1:1 with $USDC.e

  • $WHALEBOND tokens become available if an EPOCH does not print (when TWAP of WHALEUSD is below 1). There is a limited amount sold per EPOCH and the goal is you exchange your $WHALEUSD for $WHALEBOND thus reducing the supply temporarily causing the intrinsic value of each $WHALEUSD to have a higher price impact making it easier to reach peg.

  • $WHALEBOND can be redeemed after an epoch where TWAP is over 1.01. Please read our section on bonding to understand the risk/reward of bonding.

This push and pull of supply constantly adds and reduces volatility to $WHALEUSD. Similar to a rubber band effect the supply expands and contracts to become less and less volatile and more and more inline with a 1:1 value of $USDC.e

When investing in a tomb fork, a collective mindset in the community is needed as you will be moving your positions around to either support the peg by breaking your Liquidity Pool tokens and increase volatility (making it easier to reach peg) or adding to liquidity pools (decrease volatility).

Some seem to believe that going under peg is a bad thing, or that all hope is lost. It is a major point of contention in the tomb fork communities and can often lead to an early demise. It is important to understand these protocols are MEANT to go UNDER peg at some point. Once inflation becomes unsustainable there are measures in place to contract the supply and bring you back over peg to then start the cycle over. There is money to be made on both sides of the peg and hopefully after reading this documentation you have a better understanding of how to do that!