🪙Tokens
WOLF - Peg Token
The DarkWolf Finance peg token is designed to be used as a medium of exchange. The built-in stability mechanism in the protocol aims to maintain DarkWolf Finance's peg to 1 BUSD token in the long run.
How the Algorithmic Peg works?
When WOLF is below Peg
When WOLF price is below BUSD, current Market Price (Peg), token holders can purchase HOWL and WOLF will be burned to reduce the circulating supply when users redeem WOLF tokens with a 1:1 ratio.
When WOLF is above Peg
When WOLF price is above BUSD, current Market Price (Peg), the token supply will have to expand to push it back down to Peg and the contract will allow the redemption of the HOWL. When the price of WOLF continues trading above the BUSD, current Market Price (Peg), after bond redemption, the contract mints an appropriate amount of new WOLF and this will be distributed to the PACK stakers. Note that WOLF actively pegs via the algorithm, it does not mean it will be valued at 1 BUSD all times as it is not collateralized. WOLF is not to be confused for a crypto or fiat-backed stablecoin.
HOWL - Share Token
DarkWolf Finance Shares (HOWL) is one of the ways to measure the value of the DarkWolf Finance Protocol and shareholder trust in its ability to maintain WOLF close to peg. During epoch expansions the protocol mints WOLF and distributes it proportionally to all HOWL holders who have staked their tokens in the Boardroom. HOWL holders have voting rights (governance) on proposals to improve the protocol and future use cases within the DarkWolf Finance ecosystem. HOWL has a maximum total supply of 100,000 tokens distributed as follows:
1.20% - 20,000 HOWL will be allocated to DAO Fund
2.17.5% - 7,500 HOWL will be allocated to Insurance Fund
3.12.5% - 12,500 HOWL will be allocated for the development (marketing, audits, dev rewards, community engagements and other expenses)
4.50% - The remaining 50,000 HOWL will be allocated to incentivize Liquidity Providers
These tokens are vested for a period of 365 days (1 Year).
PACK - DarkWolf Bonds
The DarkWolf Finance Bonds (PACK) main job is to help incentivize changes in WOLF supply during an epoch contraction period. When the TWAP (Time Weighted Average Price) of WOLF falls below 1 BUSD, PACK's are issued and can be bought with WOLF at the current price. Exchanging WOLF for PACK burns WOLF tokens, taking them out of circulation (deflation) and helping to get the price back up to 1 BUSD. These PACK tokens can be redeemed for WOLF 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 WOLF when it is above peg, helping to push it back toward 1 BUSD. Contrary to early algorithmic protocols, PACK do not have expiration dates. All holders are able to redeem their PACK for WOLF tokens as long as the Treasury has a positive WOLF balance, which typically happens when the protocol is in epoch expansion periods.
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