VOODOO
The first algorithmic stablecoin on BITTORENT Network, pegged to the price of 1 BTT via seigniorage
FINANCE
KEY TAKEAWAYS:
Why Choose Voodoo Finance
Voodoo Tokens Bonds Mechanism Dao Fund
Questions
WHY CHOOSE VOODOO FINANCE
The $VOODOO algorithmic token serves as the backbone of a rapidly growing ecosystem aimed towards bringing liquidity and creating a long lasting impact in the Bittorent Ecosystem
Inspired by the original idea behind Tomb, Voodoo.finance is a multi-token protocol which consists of the following three tokens:
Voodoo $VOODOO VoodooShares $VSHARE
VoodooBonds $VBOND
VOODOO TOKENS
VBOND
VSHARE
VOODOO
VOODOO
VOODOO token is designed to be used as a medium of exchange.
The built-in stability mechanism in the protocol aims to maintain Voodoo's peg to 1 Bittorent Token (BTT) token in the long run
Note that Voodoo actively pegs via the algorithm, it does not mean it will be valued at 1 BTT all times as it is not collaterized . VOODOO is not to be confused for a crypto or fiat-backed stablecoin.
VSHARE
Voodoo Shares (VSHARE) are one of the ways to measure the value of the Voodoo Protocol and shareholder trust in its ability to maintain Voodoo close to peg
During epoch expansions the protocol mints Voodoo and distributes it proportionally to all VSHARE holders who have staked their tokens in the Staking (boardroom).
VSHARE holders have voting rights (governance) on proposals to improve the protocol and future use cases within the Voodoo finance ecosystem. VSHARE has a maximum total supply of 70000 tokens.
VBOND
Voodoo Bonds (VBOND) main job is to help incentivize changes in Voodoo supply during an epoch contraction period.
When the TWAP (Time Weighted Average Price) of VOODOO falls below 1 BTT , VBONDs are issued and can be bought with VOODOO at the current price. Exchanging VOODOO for VBOND burns VOODOO tokens, taking them out of circulation (deflation) and helping to get the price back up to 1 BTT.
BONDS MECHANISM
What are VBOND (Bonds)?
Bonds are unique tokens that can be utilized to help stabilize VOODOO price around peg (1 BTT) by reducing circulating supply of VOODOO if the TWAP (time-weighted-average-price) goes below peg (1 BTT).
When can I buy VBOND (Bonds)?
VBOND can be purchased only on contraction periods, when TWAP of VOODOO is below 1.
Why should I buy VBOND (Bonds)?
First and most important reason is Bonds help maintain the peg, but will not be the only measure use to keep the protocol on track, more on that on DAO Fund section.
VBONDs don't have a expiration date, so you can view them as a investment on the protocol, because long-term you get benefits from holding bonds.
DAO FUND
When VOODOO TWAP is below 1, buybacks will be initiated by the DAO. These will be done at a time decided by the
core team and not publicized until after the protocol is back in expansion to prevent front running.
Functions of VOODOO Finance DAO
The Dao fund is the second line of defence on top of the Bond Mechanism. The DAO fund is controlled by the Developers and will later move to a governance system to vote on using funds in certain areas of the project and outside including investment, marketing etc. Information about the DAO is as follows:
VOODOO Finance reserve Funds
When VOODOO TWAP is extremely high, the DAO will sell some VOODOO to help assist bringing back to peg and prepare its reserves for buybacks below 1.
The DAO fund will hold a range of assets at the discretion of the core team
The fund may or may not invest in safe projects to earn yield and grow itself at the discretion of the team
QUESTIONS
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