🪙Tokens
HKN- Hakuna Token
HKN- Hakuna TokenHAKUNA token is designed to be used as a medium of exchange. The built-in stability mechanism in the protocol aims to maintain Hakuna Matata's peg to 1 SVN token in the long run.
How the Algorithmic Peg works?
When HKN is below Peg
When HKN price is below SVN Current Market Price (Peg), token holders can purchase HBOND and HKN will be burnt to reduce the circulating supply when users redeem HKN tokens with a 1:1 ratio.
When HKN is above Peg
When HKN price is above SVN 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 HBOND.
When the price of HKN continues trading above the SVN Current Market Price (Peg) after bond redemption, the contract mints an appropriate amount of new HKN and this will be distributed to the MTT stakers.
Note that HKN actively pegs via the algorithm, it does not mean it will be valued at 1 SVN all times as it is not collaterized . HKN is not to be confused for a crypto or fiat-backed stablecoin.
MTT- Hakuna Share
MTT- Hakuna ShareHakuna Shares (MTT) are one of the ways to measure the value of the Savanna Protocol and shareholder trust in its ability to maintain HKN close to peg. During epoch expansions the protocol mints HKN and distributes it proportionally to all MTT holders who have staked their tokens in the River.
MTT holders have voting rights (governance) on proposals to improve the protocol and future use cases within the Savanna finance ecosystem.
MTT has a maximum total supply of 30,000 tokens distributed as follows:
5% go to METF vested over a 1 year
25% go to DAO vested over a 1 year
70% go to Community vested over a 1 year
HBOND- Hakuna Bond
HBOND- Hakuna BondHakuna Bond (HBOND) main job is to help incentivise changes in HKN supply during an epoch contraction period. When the TWAP (Time Weighted Average Price) of HKN falls below 1 SVN, HBONDs are issued and can be bought with HKN at the current price. Exchanging HKN for HBOND burns HKN tokens, taking them out of circulation (deflation) and helping to get the price back up to 1 SVN. These HBOND can be redeemed for HKN 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 HKN when it is above peg, helping to push it back toward 1 SVN.
All holders are able to redeem their HBOND for HKN tokens as long as the Treasury has a positive HKN balance, which typically happens when the protocol is in epoch expansion periods.
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