SCARAB token is designed to be used as a medium of exchange. The built-in stability mechanism in the protocol aims to maintain SCARAB's peg of 1 SCARAB = 1 Fantom (FTM) in the long run.
Golden Scarab (GSCARAB)
Golden Scarabs (GSCARABS) are one of the ways to measure the value of the SCARAB Protocol and shareholder trust in its ability to maintain SCARAB close to peg. During epoch expansions the protocol mints SCARAB and distributes it proportionally to all GSCARAB holders who have staked their tokens in the Temple.
GScarab holders have voting rights (governance) on proposals to improve the protocol and future use cases within the SCARAB money ecosystem.
GSCARAB has a maximum total supply of 70001 tokens distributed as follows:
- 1.DAO Allocation: 5500 GSCARAB vested linearly 12 months
- 2.Team Allocation: 5000 GSCARAB vested linearly over 12 months
- 3.Rewards: 59500 GSCARAB are allocated for incentivizing Liquidity Providers in two shares pools for 12 months
- 4.Initial mint: 1 GSCARAB minted upon contract creation for initial pool
Scarab Bonds (SBONDS)
SCARAB Bonds (SBOND) main job is to help incentivize changes in SCARAB supply during an epoch contraction period. When the TWAP (Time Weighted Average Price) of SCARAB falls below 1 SCARAB:1 FTM ,SBONDs are issued and can be bought with SCARAB at the current price. Exchanging SCARAB for SBOND burns SCARAB tokens, taking them out of circulation (deflation) and helping to get the price back up to peg. These SBOND can be redeemed for SCARAB 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 SCARAB when it is above peg, helping to push it back toward 1 SCARAB to 1 FTM ratio.
All holders are able to redeem their SBOND for SCARAB tokens as long as the Treasury has a positive SCARAB balance, which typically happens when the protocol is in epoch expansion periods.