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Sarcophagus FAQ
“What will happen when circulating supply = Total supply? Will emissions stop?”
Yes. Once the max supply of $GSCARAB (59.5K) is reached, emissions stop. This is going to be in a year from when the $GSCARAB farms start. $GSCARAB will always print $SCARAB in the Temple, though, as long as $SCARAB is above peg.
“Why is ‘at-peg’ (TWAP between 1.00 and 1.01) the best time to provide liquidity?”
When $SCARAB is pegged or close to being pegged to 1 SCARAB : 1 FTM, it is more akin to having exposure to a single asset (single staking) than to your traditional LP'ing experience, where you would run the risk of impermanent loss if one of the tokens went up in value and the other did not.
"Wait, you mean that if $FTM pumps, $SCARAB pumps with it?"
Yes!
Let's take an example:
If $FTM pumps in price, it won't 'outrun' $SCARAB.
The APR will vary in terms of its $USD value, but emissions won’t. This is something that wouldn't be possible with another 1:1 pegged asset like a stable coin LP position, where the $USD value is directly tied to the emissions. If $FTM rises in $USD value, $SCARAB goes with it. Same if $FTM falls in $USD value, $SCARAB will be worth less in $USD, but it won’t affect the peg. The only thing that can change the price of $SCARAB in terms of its $FTM value is buying and selling it.
Last modified 3mo ago