Intro To Tomb Forks

What is a Tomb Fork?

• There are 3 tokens: $WOLF, $PACK, $HOWL

• There are 2 main ways to use a tomb fork, the DEN and the farms.

• There is a token that all Tomb forks choose to peg to. Raging Bull pegs to BUSD

• IF $WOLF is greater than the value of $BUSD, the Bull Arena will inflate the supply of $WOLF.

  • This means that if you have $PACKin the Bull Arena during an epoch that the TWAP is over 1.01 you will receive $WOLF tokens.

• The farms will always emit $PACK REGARDLESS of the price action of $WOLF & $BUSD

• When the supply of $WOLF becomes too inflated, or the demand decreases, and the price goes below the value of $BUSD then the Den does not print that EPOCH.

  • The protocol is meant to have expansion and contraction phases to constantly move $WOLF closer to 1:1 with $BUSD

  • $HOWL tokens become available if an EPOCH does not print (when TWAP of WOLF is below 1). There is a limited amount sold per EPOCH and the goal is you exchange your $WOLF for $HOWL thus reducing the supply temporarily causing the intrinsic value of each $WOLF to have a higher price impact making it easier to reach peg.

  • $HOWL can be redeemed after an epoch where TWAP is over 1.01. Please read our section on bonding to understand the risk/reward of bonding.

In short...

This push and pull of supply constantly adds to and reduces volatility to $WOLF. Similar to a rubber band effect the supply expands and contracts to become less and less volatile and more and more in line with a 1:1 value of $BUSD.

When investing in a tomb fork, a collective mindset in the community is needed as you will be moving your positions around to either support the peg by breaking your Liquidity Pool tokens and increase volatility (making it easier to reach peg) or adding to liquidity pools (decrease volatility).

Going Under Peg

Some seem to believe that going under peg is a bad thing, or that all hope is lost. It is a major point of contention in the tomb fork communities and can often lead to an early demise. It is important to understand these protocols are MEANT to go UNDER peg at some point. Once inflation becomes unsustainable there are measures in place to contract the supply and bring you back over peg to then start the cycle over. There is money to be made on both sides of the peg and hopefully after reading this documentation you have a better understanding of how to do that!