SKULL is designed to be used as a stablecoin for things such as exchange, lending, borrowing etc. The protocol's algorithm aims to maintain SKULL 's peg of 1:1 SKULL in the long run.Note that SKULL actively pegs via an algorithm, it does not mean it will be valued at 1 SKULL: 1 MIM at all times as it is not collateralized. SKULL is not to be confused for a crypto or fiat-backed stablecoin.
BRAIN are one of the ways to measure the value of the SKULL Protocol and shareholder trust in its ability to maintain SKULL close to peg. During epoch expansions the protocol mints SKULL and distributes it proportionally to all BRAIN holders who have staked their tokens in the Autopsy.BRAIN holders have dao voting rights on proposals to improve the protocol and future use cases within the Skull Finance ecosystem.BRAIN has a maximum total supply of 70,001 tokens distributed as follows:
- 1.1.DAO Allocation: 5500 BRAIN vested linearly 180 days
- 2.2.Team Allocation: 5500 BRAIN vested linearly over 180 days
- 3.3.Rewards: 59500 BRAIN are allocated for incentivizing Liquidity Providers in two shares pools for 180 days
- 4.4.Initial mint: 1 BRAIN minted upon contract creation for initial pool
SKULL Bond's (SBOND) main job is to help incentivize changes in SKULL supply during an epoch contraction period. When the TWAP (Time Weighted Average Price) of SKULL falls below 1:1 MIM, SBONDs are issued and can be bought with SKULL at the current price. Exchanging SKULL for SBONDs burns SKULL tokens, taking them out of circulation (deflation) and helping to get the price back up to peg. These SBONDs can be redeemed for SKULL 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 SKULL when it is above peg, helping to push it back toward 1 SKULL to 1 MIM ratio.
Contrary to early algorithmic protocols, SBONDs do not have expiration dates.
If your SKULL is below peg exchange it for SBOND and redeem after peg is above 1.1 to receive bonus SKULL!All holders are able to redeem their SBOND for SKULL tokens as long as the Treasury has a positive SKULL balance, which typically happens when the protocol is in epoch expansion periods.