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Savanna Finance is brought to you by the team behind MM Finance. The goal is to expand our MM DEX ecosystem and create a real dynamic protocol that is a sincere alternative to the offerings of today.
This sincerity will help to expand on the Meerkat universe by creating partners and expand on the Savanna Finance where other meme protocols would have a hard time gathering backing. The ultimate goal is to create a cross-chain algorithmic stable coin that will be used on multiple chains in parallel as a way of transferring funds between different parts of the Cryptoverse. But for now, we will be focusing on Cronos Chain as our first stepping stone.
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 SVN is OVER the peg:
- 1.Buy SVN and pair it with MMF to provide liquidity, and stake your SVN-MMF LP in the Desert to earn MSHARE rewards.
- 2.Take your MSHARE rewards and stake them in the Oasis to earn inflationary SVN rewards.
- 3.Sell half of your earned SVN for MMF, and compound it back into the SVN-MMF LP.
If SVN is UNDER the peg:
- 1.Buy SVN and exchange it for MBOND. If you are LP'ing, you can break the LP to exchange SVN for MBOND, and use the remaining MMF to buy SVN to also exchange for MBOND. Now you have a big fat bag of MBOND, and you've also helped bring SVN back above peg so that the Oasis can resume printing.
- 2.Sell MBOND for a redemption bonus once SVN is back over peg (above 1.1 TWAP).
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 SVN stay above the peg for longer to keep the Oasis printing. This, in turn, attracts new investors and keeps the ecosystem growing.
- 1.When you claim your SVN rewards in the Oasis, sell 50% of them for MMF.
- 2.When you go to provide SVN-MMF LP, stake the entirety of your remaining SVN with the MMF you've just purchased.
The Desert APR is linear and prints 24/7, regardless of SVN relation to the peg. Oasis, on the other hand, prints only when SVN TWAP is above 1.01. Therefore, it may not always be that an investor gets a higher return from the Oasis than from the SVN-MMF pool. Because SVN follows the price of MMF, the SVN-MMF LP is akin to holding MMF in your wallet, except with the bonus of a high farming APR on top of it. In other words, if you're bullish on MMF's price action, the SVN-MMF LP is a way of holding exposure to that single asset while also reaping high APRs.
An expansionary epoch is the amount of SVN that is printed by MSHARE 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.
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.
After 365 days, compounding once daily: $4,848,272.
The $SVN token is a mirror-ed asset to the MMF token. The main utility at the beginning, is to allow you to use SVN-MMF LPs to earn more $SVN and more $MSHARE. Eventually, SVN tokens will be adapted for events like launchpads etc. $MSHARE token is a token that allows you to earn $SVN and $MSHARE. The mechanism for earning is largely different from that of the $SVN token. $MSHARE token can be staked singly in order to earn $SVN. If you wish to use $MSHARE token to earn more $MSHARE, you will need to provide $MSHARE-MMF LPs. Both tokens acts as incentives to promote holding of the other token. Since $MSHARE token has a limited supply of 100,000 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 $SVN inflation.
As we have described above, there will be 2 main events to watch out for. The “Genesis farming” and the “MShare farming”. Those who participate in the launchpad are guaranteed the lowest possible price of the SVN token. It is important to understand that the pegging mechanism for SVN-MMF is about eventual consistency. This means that price fluctuations above and below the peg are allowed. Obviously, we want SVN to be above peg as much as possible as that means that there is constant demand for the SVN token.
From experience, a token such as SVN is likely to experience huge demand at the start. When we begin “Genesis farming”, those who managed to get larger and cheaper allocations of SVN will be able to farm more SVN, while those who failed to get SVN during launchpad will be scrambling to purchase SVN, thus pushing up the prices of SVN. Within another 24 hours, “MShares farming” will begin, to allow SVN-MMF LP holders to farm for the MShares. Both these 2 farming events presents opportunities for high APR farming, and the largest value capture is for those who managed to get SVN tokens at the launchpad price (which is likely going to be the cheapest price SVN tokens will be — and it will take quite some time before it heads back down to peg). The earning opportunities presented in SVN finance is obviously going to generate quite heavy demand, and hence is likely to translate to higher prices for SVN upon launch.
Finally, the launchpad comes with a 30 day backing guarantee. This means that the MMF team will ensure to bailout the SVN token if it fails to stay above peg, and everyone who participated in the launchpad is guaranteed their intial capital!
Yes. With “Genesis farming” you will be able to earn more SVN with your SVN-MMF LPs. With high APR, it will obviously make sense to purchase SVN to participate in farming. However, the main event is truly “MShares farming”.
KEY Reason (ALPHA): You will be able to earn $MSHARE that is the centrepiece of Savanna Finance. The reason being, $MSHARE will be limited in supply, allows you to claim SVN inflation (means you earn more when the network grows), will provide higher APR farming for when you perform MSHARES-MMF LP farming.
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 SVN token is always above, or at peg. The only way an investor “loses value” is when SVN 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 SVN tokens will not stay under its peg for prolonged periods of time. This translates to way lower risk for users who intend to participate.
No, MMF will not be diluted. $SVN was created as a mirror-ed asset of $MMF to support $MMF and the ecosystem. Due to the plans of introducing veMMF (a voting lock-up mechanism), $MMF supply will get increasingly locked up, and this will result in more than desirable volatility for MMF tokens if we were to conduct huge events like launchpads, partnerships or new farms. Thus, a mirror-ed SVN token that acts as a value capture for the MMF token will allow us to still conduct huge events with ease. During such events, MMF will also receive price appreciation because users that wish to participate in our launchpads will need to buy SVN tokens, while purchasing MMF tokens too. A mirror-ed asset is critical in ensuring that liquidity goals can be hit, while reducing overall volatility. At MM Finance, we seek to build an entire ecosystem of tools and products that has huge synergy, and SVN Finance is one of the first few products that will help us to achieve our goals of building a truly decentralized financial playground for users of all walks of life!