FAQ
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 CoreTomb Finance.
Getting Started
1.“Generally speaking, what's the easiest flow to follow for compounding rewards?”
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 $CTOMB is OVER the peg:
-Buy $CTOMB and pair it with $CORE to provide liquidity, and stake your CTOMB-CORE LP in the CSHARE Reward Pool to earn $CSHARE rewards. -Take your $CSHARE rewards and stake them in the Masonry to earn inflationary $CTOMB rewards. -Sell half of your earned $CTOMB for $CORE, and compound it back into the CTOMB-CORE LP. -Profit!
If $CTOMB is UNDER the peg:
1.Buy CTOMB and exchange it for CBOND. If you are LP'ing, you can break the LP to exchange $CTOMB for $CBOND, and use the remaining $CORE to buy $CTOMB to also exchange for $CBOND. Now you have a big fat bag of $CBOND, and you've also helped bring $CTOMB back above peg so that the Masonry can resume printing.
2.Sell $CBOND for a redemption bonus once $CTOMB is back over peg (above 1.1 TWAP).
(Note: $CBOND can be also bought at CoreTomb.Finance)
3.Profit.
2. "What is 50/50?"
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 $CTOMB 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 $CTOMB rewards in the Masonry, sell 50% of them for $CORE.
2)When you go to provide CTOMB-CORE LP, stake the entirety of your remaining CTOMB with the $CORE you've just purchased.
3.“There's so many auto-compounding vaults, what should I do?”
If you are in a $CTOMB-CORE LP auto-compounding vault, you are creating buy pressure on $CTOMB. If you are in a $CSHARE-CORE LP auto-compounding vault and you also hold $CSHARE elsewhere, the auto-compounding vault will be suppressing its price since it is continuously selling $CSHARE.
(Please Note: Always proceed with caution. We DO NOT recommend putting more than 5% of what you are staking on CoreTomb 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.)
4. "APR is much higher in the Masonry than in the cemetery for CTOMB-CORE LP. Why would I not just invest everything there?"
The cemetery APR is linear and prints 24/7, regardless of CTOMB's relation to the peg. Masonry, on the other hand, prints only when CTOMB'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 CTOMB-CORE pool.
Because $CTOMB follows the price of $CORE, the CTOMB-CORE LP is akin to holding $CORE in your wallet, except with the bonus of a high farming APR on top of it. In other words, if you're bullish on $CORE's price action, the CTOMB-CORE LP is a way of holding exposure to that single asset while also reaping high APRs.
Terms and Mechanisms
1. "What is an expansionary epoch?"
An expansionary epoch is the amount of $CTOMB that is printed by $CSHARE 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.
2. “What is compounding in the context of CoreTomb Finance?”
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.
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