Tokenomics

3 Main tokens

BURROW: the protocol's token which is used for incentivization.
sBURROW/mBURROW: obtained by staking BURROW tokens and used for fee-sharing and governance!
MUSD: a USD pegged stable coin

In short, the $BURROW token will be a governance token for the MMF Money platform, and it has a limited supply. This $BURROW token will be distributed in launchpad, as well as to be distributed to believers of the MMF Money platform as yield farming incentives in the beginning. Platform fees and revenues earnt from AMOs are distributed back to $BURROW holders, and this can come in the form of buybacks and burns, or even in $MUSD revenues being distributed to stakers.

The BURROW Token

Token Symbol: BURROW

Total Supply: 300,000,000 BURROW

BURROW Token Distribution:

78.33%: Global Farming Incentives
17.5%: Treasury
1.67%: Initial Liquidity
5%: Initial DEX Offering

BURROW utility:

MUSD fees from CDP on the MMF.money platform will be redistributed back to users in the form of $BURROW tokens. In the future, with higher revenue, the MMF.money platform will also redistribute $MUSD to $BURROW token holders. This would be more ideal when enough $BURROW tokens have been burnt.
Algorithmic Market Operations (AMOs — also known as strategies) will be deployed to earn revenue. These revenues are estimated to be about 50k daily with moderate adoption of the MUSD token on the Cronos chain. As Cronos chain scales, so will the revenues. Revenue will be redistributed back to $BURROW holders.
Earn community farming incentives. You will be able to earn $BURROW tokens for providing liquidity for the BURROW-MMF (and more) trading pair.
There will be buybacks and burns of $BURROW tokens to reduce circulating supply in certain AMOs.
MMF Money platform will establish close relationships with existing money markets such as Tectonic, Mimas, Annex that are already on Cronos chain. Supply and borrow markets for $MUSD token will be set up on these money markets. This allows for the MM Finance team to deploy more AMOs to benefit $BURROW holders.
Cross-chain $MUSD. The $MUSD token will be deployed cross-chain and will seek to have deep liquidity on popular chains so as to allow users to use $MUSD as a store of value. This prompts higher adoption + market cap, which translates to more revenues that will be returned back to $BURROW holders.

The sBURROW Token

You can stake and lock your BURROW to get sBURROW. Staking BURROW has a 24 hour time lock (Every time a user stakes BURROW token, he will not be able to withdraw for the next 24 hours).

Firstly fees (interest, borrow fee and 10% of the liquidation fee for certain markets) are deposited in the BURROW fee pool in the form of BURROW tokens. When users single-side stake their BURROW tokens they receive sBURROW tokens. sBURROW tokens represent your share of the BURROW fee pool. 10% of all liquidation fees are also hardcoded to be taken out and used to purchase BURROW tokens in certain markets. These BURROW tokens are also added to the BURROW fee pool.

Your sBURROW tokens are continuously compounding! When you unstake, you will receive all the originally deposited BURROW tokens plus any additional BURROW earned from the fees.

75% of the protocol revenue will be used to buyback BURROW tokens, while 25% will be used to build up a treasury.

sBURROW will also allow meerkats to take part in governance as soon as the governance portal will be live.

The MUSD Token

The MUSD token is a USD pegged stable coin that is backed by interest bearing tokens!

The MUSD Price Peg

Since MUSD is a USD pegged stable coin, it needs to remain pegged to the USD. The mechanics used rely on arbitrage, keeping it simple. This can happen in several ways.

Users that hold debt, in MUSD, might notice that MUSD is trading on some market below 1 USD and decide to buy some MUSD at this discount to repay some of their debt. This purchase of MUSD will have a price rising effect relative to their volume.
Users that hold components (valid collateral), might notice that MUSD is trading on some market above 1 USD and decide to open a position and sell the MUSD borrowed to put to use elsewhere. This transaction will have a price lowering effect relative to their volume.
Users that hold other cryptocurrencies, (stablecoins or not) might see MUSD trading differently on two of the above mentioned markets and decide to buy MUSD on one market where the price is below 1 USD and sell on another where the price is either at 1 USD or above. This can also happen in reverse.

In most cases, a lot of the Market to Market arbitrage is done by automated bots that constantly monitor pools for opportunities to capitalize on these price differences. This has the benefit of having price pegs being corrected quite rapidly.

PreviousContracts

Last updated 2 years ago

BURROW utility:

MUSD fees from CDP on the MMF.money platform will be redistributed back to users in the form of $BURROW tokens. In the future, with higher revenue, the MMF.money platform will also redistribute $MUSD to $BURROW token holders. This would be more ideal when enough $BURROW tokens have been burnt.

Algorithmic Market Operations (AMOs — also known as strategies) will be deployed to earn revenue. These revenues are estimated to be about 50k daily with moderate adoption of the MUSD token on the Cronos chain. As Cronos chain scales, so will the revenues. Revenue will be redistributed back to $BURROW holders.

Earn community farming incentives. You will be able to earn $BURROW tokens for providing liquidity for the BURROW-MMF (and more) trading pair.

There will be buybacks and burns of $BURROW tokens to reduce circulating supply in certain AMOs.

MMF Money platform will establish close relationships with existing money markets such as Tectonic, Mimas, Annex that are already on Cronos chain. Supply and borrow markets for $MUSD token will be set up on these money markets. This allows for the MM Finance team to deploy more AMOs to benefit $BURROW holders.

Cross-chain $MUSD. The $MUSD token will be deployed cross-chain and will seek to have deep liquidity on popular chains so as to allow users to use $MUSD as a store of value. This prompts higher adoption + market cap, which translates to more revenues that will be returned back to $BURROW holders.

The sBURROW Token

You can stake and lock your BURROW to get sBURROW. Staking BURROW has a 24 hour time lock (Every time a user stakes BURROW token, he will not be able to withdraw for the next 24 hours).

Your sBURROW tokens are continuously compounding! When you unstake, you will receive all the originally deposited BURROW tokens plus any additional BURROW earned from the fees.

75% of the protocol revenue will be used to buyback BURROW tokens, while 25% will be used to build up a treasury.

sBURROW will also allow meerkats to take part in governance as soon as the governance portal will be live.

The MUSD Token

The MUSD token is a USD pegged stable coin that is backed by interest bearing tokens!

The MUSD Price Peg

Since MUSD is a USD pegged stable coin, it needs to remain pegged to the USD. The mechanics used rely on arbitrage, keeping it simple. This can happen in several ways.

Users that hold debt, in MUSD, might notice that MUSD is trading on some market below 1 USD and decide to buy some MUSD at this discount to repay some of their debt. This purchase of MUSD will have a price rising effect relative to their volume.

Users that hold components (valid collateral), might notice that MUSD is trading on some market above 1 USD and decide to open a position and sell the MUSD borrowed to put to use elsewhere. This transaction will have a price lowering effect relative to their volume.

Users that hold other cryptocurrencies, (stablecoins or not) might see MUSD trading differently on two of the above mentioned markets and decide to buy MUSD on one market where the price is below 1 USD and sell on another where the price is either at 1 USD or above. This can also happen in reverse.