For all your pressing questions!
Please note that none of this is financial advice. You should do your due diligence to become an informed investor by doing your own research, coming to your own conclusions, and taking note of the risks and responsibilities associated with participating in Tomb.Finance.
The team is available in the Discord to answer questions, so please reach out if they're not answered here!
Why have a token that’s pegged to the price of $FTM when you could just use $FTM itself instead?
Good question. But before we dive into what $TOMB could mean for you as an investor, let’s break down the potential impact of $TOMB’s long-term success on the Fantom ecosystem as a whole.
For Fantom to continue running as the fast, secure, and cost-effective blockchain we all know and love, its validator nodes will continue to rely on its $FTM token remaining staked and locked up. $FTM is distributed as a reward to validator nodes, which will continue to increase in number to sustain the network's growth, whereas the $FTM token itself has a fixed maximum supply. At the time of writing this, the staking requirement for a validator node requires 500,000 $FTM, and "if the rewards stay at the current levels (depending on governance decisions), it will take more than two years to distribute all the rewards and to reach a full circulation of the total supply... and All the tokens taken together will never exceed the total cap of 3.175 billion FTM."
So if $FTM is intended to be "ideal for sending and receiving payments" as a decentralized alternative to stablecoins, what will happen when there just isn’t enough Opera-native $FTM to go around?
If $TOMB succeeds in holding the peg, this will create a mirrored, liquid asset that can be moved around and traded without restrictions, all while benefiting from the price appreciation of the native $FTM token. Reaching the peg and holding the peg is crucial, and this will ultimately be what drives the value of $TOMB for investors. In the short term, this would mean attractive APRs for liquidity providers on what would essentially be a stable pair.
So, once a liquid market is the norm, what happens next? What are some other reasons you’d want to hold $TOMB?
$TOMB aims to become the primary utility token of the Fantom ecosystem, and the first step is its role in FTMpad, Fantom’s first incubator & launchpad. The selection, development, and deployment of the next generation of Fantom DeFi projects will be decided by those who hold $TSHARE, $TOMB’s governance token (affectionately referred to as “the money printer” by gravediggers). Oh, and we’re just getting started.
You may have read that by pegging to $FTM, $TOMB hopes to become a highly liquid, mirrored asset. What does this actually mean though?
As an example, say the dollar is the world's main medium of exchange. Everything is measured in terms of dollars, whether that's your weekly salary, or whether it's the price of bread or a computer. And you need dollars to buy literal gas to get to the bakery, or to the computer store.
But imagine if nobody wanted to use their dollars, and preferred to keep them under their mattresses instead. Since the value of everything gravitates in relation to the dollar, there would need to be something out there that is 1:1 "interchangeable" with the dollar, so that even if all the dollars in the world were tucked under mattresses, people could continue to transact freely.
Knowing that whatever they received would be able to be traded in for a dollar at whatever point in time they so desired. That's what $TOMB hopes to become for $FTM.
The following is NOT FINANCIAL ADVICE. It is for education and entertainment purposes only.
There are countless strategies, and which one you choose depends on your risk tolerance and short, medium, and long-term goals. That being said, the "plug-and-play" method is detailed below. Also, take some profits along the way. Don't get too greedy.
If $TOMB is OVER the peg:
-Buy $TOMB and pair it with $FTM to provide liquidity, and stake your TOMB-FTM LP in the cemetery to earn $TSHARE rewards. -Take your $TSHARE rewards and stake them in the Masonry to earn inflationary $TOMB rewards. -Sell half of your earned $TOMB for $FTM, and compound it back into the TOMB-FTM LP. -Profit!
1.Buy TOMB and exchange it for TBOND. If you are LP'ing, you can break the LP to exchange $TOMB for $TBOND, and use the remaining $FTM to buy $TOMB to also exchange for $TBOND. Now you have a big fat bag of $TBOND, and you've also helped bring $TOMB back above peg so that the Masonry can resume printing.
2.Sell $TBOND for a redemption bonus once $TOMB is back over peg (above 1.1 TWAP).
50/50 is the method best suited to provide stability for both the platform and for your underlying investment. By boosting liquidity, the 50/50 strategy reduces price volatility, and helps $TOMB stay above the peg for longer to keep the Masonry printing. This, in turn, attracts new investors and keeps the ecosystem growing. 1)When you claim your $TOMB rewards in the Masonry, sell 50% of them for $FTM. 2)When you go to provide TOMB-FTM LP, stake the entirety of your remaining TOMB with the $FTM you've just purchased.
If you are in a $TOMB-FTM LP auto-compounding vault, you are creating buy pressure on $TOMB. If you are in a $TSHARE-FTM LP auto-compounding vault and you also hold $TSHARE elsewhere, the auto-compounding vault will be suppressing its price since it is continuously selling $TSHARE.
(Please Note: Always proceed with caution. We DO NOT recommend putting more than 5% of what you are staking on Tomb into a single auto compounder. Defi involves significant risks and users should manage risks accordingly. For example, users should only put in what they are willing to lose. DO NOT invest your life savings and do your homework before getting active in Defi.)
The cemetery APR is linear and prints 24/7, regardless of Tomb's relation to the peg. Masonry, on the other hand, prints only when Tomb's TWAP is above 1.01. Therefore, it may not always be that an investor gets a higher return from the Masonry than from the TOMB-FTM pool. Because $TOMB follows the price of $FTM, the TOMB-FTM LP is akin to holding $FTM in your wallet, except with the bonus of a high farming APR on top of it. In other words, if you're bullish on $FTM's price action, the TOMB-FTM LP is a way of holding exposure to that single asset while also reaping high APRs.
An expansionary epoch is the amount of $TOMB that is printed by $TSHARE in order to increase the total circulating supply.
To simplify the explanation with a hypothetical example, let’s say an epoch is 3 days long and there are $100 dollars in the circulating supply.
If the money printer grows the supply by 10% of the existing circulating supply each day, at the end of the 3 days you'd have 100*1.1*1.1*1.1 = $133.
Then, let’s say the emissions decrease to 5% per day.
You’d then have have $133 *1.05 *1.05 *1.05 = $153 at the end of this second epoch.
Earning a return on gains you've already made from previous periods is what is commonly referred to as compounding.
For example, consider a 3% daily APR on an initial investment of $100.
After 24 hours it would grow to $103.
After 365 days without compounding: $1195.
After 365 days, compounding once daily: $4,848,272.
Staking $TSHAREs will give you $TOMB rewards when the price of $TOMB is above the peg (FTM), but not when it is under the peg.
This means that the TWAP (Time-weighted average price) at the Masonry has to be at 1.01+ at the end of the epoch to print.
Any interaction with the masonry will reset both timers. That's 3 epochs (18 hours) to withdraw your TOMB rewards, and 6 epochs to unstake your Tshare (36 hours).
No. As long as you stake, at any time, before the end of an epoch, you will get a potential print.
No, it will still be there to collect whenever you need.
A debt phase takes place on the expansion epochs that start after a contraction period where there are still $TBOND to be redeemed.
65% of Expansion during Debt Phase is allocated to the Treasury Fund to prepare for the TBOND Redemption. This amount is still reserved whether or not TBOND holders are redeeming bonds or not.
Once TOMB in treasury is sufficiently full to meet all circulating bond redemption, expansion rates will resume to normal.
The debt phase will last as long as is necessary to adequately pay back outstanding $TBOND debt. Please keep in mind that the DAO will also need to collect a little extra, as there needs to be a cushion to cover the bonuses when people redeem $TBOND over peg. There's no exact way of calculating how many epochs it takes, since we don't know exactly when people will redeem their $TBOND. If the debt phase is ended too early, and then the treasury doesn't have enough $TOMB to repay the $TBOND bonus, then the APR restriction would need to be turned back on.
There is a balanced state "at peg" when $TOMB's TWAP is between 1.00 and 1.01, and this means there is neither contraction nor inflation.
Depending on the price of Tomb, the Masonry print will have to adjust to provide a buffer for any unclaimed TBOND. As the price of TOMB climbs above the peg, more TOMB needs to be distributed to the treasury to account for TBOND bonus redemption.
Yes. Once the max supply of $TSHARE (70K) is reached, emissions stop. Emissions have ended as of June 12, 2022. $TSHARE will always print $TOMB in the Masonry, though, as long as $TOMB is above peg.
When $TOMB is pegged or close to being pegged to $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.
Yes! Let's take an example: If $FTM pumps in price, it won't 'outrun' $TOMB. 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, $TOMB goes with it. Same if $FTM falls in $USD value, $TOMB will be worth less in $USD, but it won’t affect the peg. The only thing that can change the price of $TOMB in terms of its $FTM value is buying and selling it.
Staking either $TOMB/$FTM or $TSHARE/$FTM LPs in these vaults rewards you with more of the same LP (liquidity pool) tokens that you have deposited. They deposit your LP tokens in the same yield farms that are available to everyone on $TOMB.finance, and then, every set amount of minutes, they harvest the $TSHARE that you’ve earned, sell a portion of if, and use the proceeds to mint more LP tokens on SpookySwap, before finally depositing those LP tokens back into the $TOMB.finance pools, growing your allocation.
You can actually do this yourself if you prefer not to have to pay fees; it’s simply a service offered as a time-saver for those that don’t want the hassle of going through the whole process themselves all day every day.
Note on the tokenomics of auto-compounding: Both the $TSHARE/FTM LP and the $TOMB/$FTM LP pools pay rewards in $TSHARE: If you’re in the $TSHARE/$FTM pool, 50% of your $TSHARE rewards are sold for $FTM each time the protocol auto-compounds. If you’re in the $TOMB/$FTM pool, 100% of your reward is sold and used to purchase half $TOMB and half $FTM each time. Unlike the TOMB/FTM vault, the TSHARE/FTM vault does not put any buy pressure on $TOMB.
You can visit or learn about some current strategies at:
If you need help or want to discuss more about them you can join our social platforms and have a chat with our mods!
Disclaimer: There is no real way to predict the future earnings from the Masonry because the Masonry will only mint new $TOMB when the market demands it.
Simplified example for a non-debt phase: say you have 1 $TSHARE staked out of 10 total $TSHAREs staked in Masonry, so you will get 10% of the total $TOMB emissions.
So, for this example we are assuming that there is a total circulating supply of 10,000 $TOMB, the current expansion rate is at 4%, and therefore 400 $TOMB will be emitted. You would get ((0.04 * 10000) * 0.8) * (1/10) = 32 $TOMB. With current regulations, this is the distribution breakdown: -80% of printed $TOMB goes to $TSHARE stakers. -18% goes to DAO-fund. - 2% goes to the devs.
Formula to calculate your rewards: ((ExpansionRate * CirculatingTOMBSupply) * 0.8) * (YourTShareStake/TotalTShareStaked)
The more TVL in the pool, the less APR (there's more people getting the same piece of the pie), but the higher the price of the reward (the pie) the higher the APR (better quality of pie). In other words, although the same rewards are diluted across more investors, if those rewards have a higher dollar value because of the increase in TVL, then it can actually lead to a higher APR as well.
Never put all your funds in one basket, even if it's $TOMB. Always take gains along the way. The Tomb team views it as a success if, over time, everyone gets their initial investment back into their wallets and continues investing with the profits that come after that.
$TBOND will only become available in the Pit following epochs in which the Time Weighted Average Price (TWAP) of $TOMB is under peg. This means that $TOMB's price will have had to have been under 1 $FTM for the majority of the previous epoch in order to trigger the Pit to "open".
For example: If, during the previous epoch, the ratio of $TOMB to $FTM had been 1.2 for 5 hours, but dipped to 0.9 in the final hour, the Pit will not open, as the TWAP would be higher than 1. Conversely, if $TOMB's price is at 0.9 that of $FTM for 5 hours, but spikes to 1.25 in the final hour, the Pit will remain open during the following epoch, since the TWAP is less than 1.
The Pit will always open at the very beginning of a new epoch, and remain open for the entire epoch — the Pit can not and will never open mid-epoch — and during epochs in which the Pit is open, $TOMB will not be printed in the Masonry.
With the addition of Tomb Swap, we have liquidity for TOMB/TBOND and that means you can utilize the Swap to buy $TBONDS even when the Pit is closed.
To encourage redemption of $TBOND for $TOMB when $TOMB's TWAP > 1.1, and in order to incentivize users to redeem at a higher price, $TBOND redemption will be more profitable with a higher $TOMB TWAP value.
There is a balanced state "at peg" when $TOMB's TWAP is between 1.00 and 1.01, and this means there is neither contraction nor inflation.
An epoch has to end below peg for $TBOND tokens to be issued at the Pit.
You can swap it back again when the following two criteria are met:
1: $TOMB TWAP is above peg and
2. There is enough in the treasury to cover it the redemption.
Like anything else in crypto, obtaining $TBOND is not risk-free. Just like in the real world, you are purchasing debt from the protocol with the expectation that you will be redeemed at a premium in the future. To date, this has occurred after all contractions, but past performance does not guarantee the same future outcomes. $TBOND is ideal for those with a medium to long-term time preference, as it incentivizes hodling in exchange for potentially extremely lucrative rewards. If you are looking for a quick flip or have short-term time preference, $TBOND may not be the right investment option for you.
Say, for example, that you buy 5,000 $TBOND at the time of writing this. That's about $1,000.
Then, say the market flips super bullish and $FTM goes back to $0.60 and $TOMB pushes up to $0.90.
You could redeem your $TBOND at that point for 11,250 $TOMB, which would be worth $10,125.
That's over $9K in profit if you hold your $TBOND.
TBOND TWAP (time-weighted average price) is based on TOMB price TWAP from the previous epoch as it ends. This mean that TOMB TWAP is real-time and TBOND TWAP is not. In other words, you can redeem TBOND for a bonus when the previous epoch's TWAP > 1.1.
For all troubleshooting please head over to our Discord and post your question in the tech-support channel. You can also head to our Telegram and reach out to any Moderator.
The project went live on 2021-06-02 12:30:00 UTC.