🪙Tokens

The Farming Whales Bonds (WHALEBOND) main job is to help incentivise changes in WHALEUSD supply during an epoch contraction period. When the TWAP (Time Weighted Average Price) of WHALEUSD falls below 1 USDC, WHALEBONDS are issued and can be bought with WHALEUSD at the current price. Exchanging WHALEUSD for WHALEBOND burns WHALEUSD tokens, taking them out of circulation (deflation) and helping to get the price back up to 1 USDC. These WHALEBOND tokens can be redeemed for WHALEUSD 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 WHALEUSD when it is above peg, helping to push it back toward 1 USDC.Contrary to early algorithmic protocols, WHALEBOND do not have expiration dates. All holders are able to redeem their WHALEBOND for WHALEUSD tokens as long as the Treasury has a positive WHALEUSD balance, which typically happens when the protocol is in epoch expansion periods.