Cheetah token is designed to be used as a medium of exchange. The built-in stability mechanism in the protocol aims to maintain Cheetah's peg to 1 FTM token in the long run.
Note that Cheetah actively pegs via the algorithm, it does not mean it will be valued at 1 FTM all times as it is not collaterized. Cheetah is not to be confused for a crypto or fiat-backed stablecoin.
Cheetah Shares ($CSHARE) are one of the ways to measure the value of the Protocol and shareholder trust in its ability to maintain Cheetah close to peg. During epoch expansions the protocol mints Cheetah and distributes it proportionally to all Cheetah holders who have staked their tokens in the Boardroom.
CSHARE has a maximum total supply of 45,010 tokens distributed as follows:
- 1.Team Allocation: 0 CSHARE
- 2.Remaining 45,000 CSHARE are allocated for incentivizing Liquidity Providers in CSHARE reward pools for 12 months
- 3.10 CSHARE be minted for initial liquidity
CBOND main job is to help incentivize changes in CBOND supply during an epoch contraction period. When the TWAP (Time Weighted Average Price) of Cheetah falls below 1 FTM, CBOND are issued and can be bought with Cheetah at the current price. Exchanging Cheetah for CBOND burns Cheetah tokens, taking them out of circulation (deflation) and helping to get the price back up to 1 FTM. These CBOND can be redeemed for Cheetah 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 Cheetah when it is above peg, helping to push it back toward 1 FTM.
Contrary to early algorithmic protocols, CBOND do not have expiration dates.
All holders are able to redeem their CBOND for Cheetah tokens as long as the Treasury has a positive Cheetah balance, which typically happens when the protocol is in epoch expansion periods.