FarLog Cash: What You Need To Know

Three-token System

  • FarLog Cash ($FLC): a stablecoin, which the protocol aims to keep value-pegged to 1 US Dollar.
  • FarLog Bonds ($FLB): IOUs issued by the system to buy back FarLog Cash when price($FLC) < $1. Bonds are sold at a meaningful discount to price($FLC), and redeemed at $1 when price($FLC) normalizes to $1.
  • FarLog Shares ($FLS): receives surplus seigniorage (seigniorage left remaining after all the bonds have been redeemed).

Stability Mechanism

  • Contraction: When the price($FLC) < ($1 — epsilon), users can trade in $FLC for $FLB at the of price($FLC). This allows bonds to be always sold at a discount to cash during a contraction.
  • Expansion: When the price($FLC) > ($1 + epsilon), users can trade in 1 $FLB for 1 $FLC. This allows bonds to be redeemed always at a premium to the purchase price.
  • Seigniorage Allocation: If there are no more bonds to be redeemed, (i.e. bond Supply is negligibly small), more $FLC is minted totalSupply($FLC) * (price($FLC) — 1), and placed in a pool for $FLS holders to claim.

FarLog Cash: FLC

FarLog Shares: FLS

BONUS TOKEN

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