# FAQs

## Who is behind HKN and what is the motivation behind?

Hakuna Matata is brought to you by the team behind MM Finance. The goal is to be in control of tomb forks in relation to our platform, and to instill the confidence that the tomb fork will operate exactly how it is meant to, without the excessive need to take profit from the protocol.

## 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 HKN is OVER the peg:**

1. Buy **HKN** and pair it with **SVN** to provide liquidity, and stake your **HKN**-**SVN** LP in the Jungle to earn **MTT** rewards.
2. Take your **MTT** rewards and stake them in the River to earn inflationary **HKN** rewards.
3. Sell half of your earned **HKN** for **SVN**, and compound it back into the **HKN**-**SVN** LP.

**If HKN is UNDER the peg:**

1. Buy **HKN** and exchange it for HBOND. If you are LP'ing, you can break the LP to exchange **HKN** for HBOND, and use the remaining **SVN** to buy **HKN** to also exchange for HBOND. Now you have a big fat bag of HBOND, and you've also helped bring **HKN** back above peg so that the River can resume printing.
2. Sell HBOND for a redemption bonus once **HKN** is back over peg (above 1.1 TWAP).

## 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 **HKN** stay above the peg for longer to keep the River printing. This, in turn, attracts new investors and keeps the ecosystem growing. 

1. When you claim your **HKN** rewards in the River , sell 50% of them for **SVN**. 
2. When you go to provide **HKN**-**SVN**LP, stake the entirety of your remaining **HKN** with the **SVN** you've just purchased. 

## APR is much higher in the River than in the Jungle for **HKN**-**SVN** LP. Why would I not just invest everything there?

The Jungle APR is linear and prints 24/7, regardless of **HKN** relation to the peg. River, on the other hand, prints only when **HKN** TWAP is above 1.01. Therefore, it may not always be that an investor gets a higher return from the River than from the **HKN**-**SVN** pool.\
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Because **HKN** follows the price of **SVN**, the **HKN**-**SVN** LP is akin to holding **SVN** in your wallet, except with the bonus of a high farming APR on top of it. In other words, if you're bullish on **SVN's** price action, the **HKN**-**SVN** LP is a way of holding exposure to that single asset while also reaping high APRs.

## What is an expansionary epoch?

An expansionary epoch is the amount of **HKN** that is printed by **MTT** 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.

## **What is compounding in the context of Savanna 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.

&#x20;After 365 days, compounding once daily: $4,848,272.<br>

## *What is the purpose of $***HKN***? What is the purpose of $***MTT***?*

The $**HKN** token is a mirrored asset to the **SVN** token. The main utility at the beginning, is to allow you to use **HKN**-**SVN** LPs to earn more $**HKN** and more $**MTT**. Eventually, **HKN** tokens will be adapted for events like launchpads etc. $**MTT** token is a token that allows you to earn $**HKN** and $**MTT**. The mechanism for earning is largely different from that of the $**HKN** token. $**MTT** token can be staked singly in order to earn $**HKN**. If you wish to use $**MTT** token to earn more $**MTT**, you will need to provide $**MTT**-**SVN** LPs. Both tokens acts as incentives to promote holding of the other token. Since $**MTT** token has a limited supply of 30,000 tokens only, it makes sense to accumulate as much as possible, because with a higher share, you will be able to claim a larger share of $**HKN** inflation.

## I get we can absolutely stake into a high APR LP they’ll create for **HKN**/**SVN** but given it’s 1:1 and pegged, including in value, what’s the point joining the launch? <a href="#id-7026" id="id-7026"></a>

Those who participate in the launchpad are guaranteed the lowest possible price of the **HKN** token. It is important to understand that the pegging mechanism for **HKN**-**SVN** is about eventual consistency. This means that price fluctuations above and below the peg are allowed. Obviously, we want **HKN** to be above peg as much as possible as that means that there is constant demand for the **HKN** token.

Within another 24 hours, “**MTT** farming” will begin, to allow **HKN**-**SVN** LP holders to farm for the **MTT**. Both these 2 farming events presents opportunities for high APR farming, and the largest value capture is for those who managed to get **HKN** tokens at the launchpad price (which is likely going to be the cheapest price **HKN** tokens will be — and it will take quite some time before it heads back down to peg). The earning opportunities presented in **Hakuna Matata** is obviously going to generate quite heavy demand, and hence is likely to translate to higher prices for **HKN** upon launch.

Finally, the launchpad comes with a 30 day backing guarantee. This means that the Mad Meerkat team will ensure to bailout the **HKN** token if it fails to stay above peg, and everyone who participated in the launchpad is guaranteed their initial capital!

## Why are you pegging it 1:1? This seems like it is not creating value for investors? <a href="#ce22" id="ce22"></a>

Unfortunately, the reality is you cannot create money out of thin air. Any project that promises you a moonshot where you seemingly get multiples upon launch is simply not being realistic. However, that said, a project team can build value for a project and its token by introducing mechanisms and utility to ensure growth of the token. In this case, our team has plans to ensure that the **HKN** token is always above, or at peg. The only way an investor “loses value” is when **HKN** tokens are constantly below peg, because that way it means they are not able to efficiently earn from it. That said, there are multiple mechanisms the MM team has put into place to ensure that **HKN** tokens will not stay under its peg for prolonged periods of time. This translates to way lower risk for users who intend to participate.