# Tokens

## ![](https://402425279-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F2NMXsbeLNw8Oyuhha4TW%2Fuploads%2F9y28HhFS6r4wqKlvx5RG%2FSVN%20LOGO.svg?alt=media\&token=494ad52a-78e8-422c-9d28-ca900f3841c5)  SVN - Savanna Token

```
0x654bAc3eC77d6dB497892478f854cF6e8245DcA9
```

**SVN** token is designed to be used as a medium of exchange. The built-in stability mechanism in the protocol aims to maintain Savanna's peg to 1 **MMF** token in the long run. 

### **How the Algorithmic Peg works?**

**When SVN is below Peg**

When SVN price is below MMF Current Market Price (Peg), token holders can purchase MBOND and **SVN** will be **burnt** to reduce the circulating supply when users redeem SVN tokens with a 1:1 ratio.

**When SVN is above Peg**

When **SVN** price is above MMF 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 **MBOND**.

When the price of SVN continues trading above the MMF Current Market Price (Peg) after bond redemption, the contract mints an appropriate amount of new SVN and this will be **distributed** to the **MSHARE** stakers.

{% hint style="warning" %}
Note that SVN **actively pegs via the algorithm**, it **does not mean** it will be valued at 1 MMF all times as it is not collaterized . SVN is not to be confused for a crypto or fiat-backed stablecoin.
{% endhint %}

## ![](https://402425279-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F2NMXsbeLNw8Oyuhha4TW%2Fuploads%2F1UjyYsR6pHWgTG0IPWgb%2FMSHARE%20LOGO.svg?alt=media\&token=f0a1d68a-e88e-4347-b9c0-559f916d9d35) MSHARE - Meerkat Shares

```
0xf8b9facB7B4410F5703Eb29093302f2933D6E1Aa
```

Meerkat Shares (**MSHARE**) are one of the ways to measure the value of the Savanna Protocol and shareholder trust in its ability to maintain SVN close to peg. During epoch expansions the protocol mints SVN and distributes it proportionally to all MSHARE holders who have staked their tokens in the Oasis.

**MSHARE** holders have voting rights (governance) on proposals to improve the protocol and future use cases within the Savanna finance ecosystem.

**MSHARE** has a maximum total supply of 100000 tokens distributed  as follows:

1. 70% - Liquidity Provision: 70000 are allocated for incentivising Liquidity Providers in Shares pools over 1 year
2. 15% - DAO: 15000 vested over 1 year
3. 10% - Team Reserves: 10000 vested over 1 year
4. 5% - Treasury: 5000 vested over 1 year

## ![](https://402425279-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F2NMXsbeLNw8Oyuhha4TW%2Fuploads%2FTgHCUBmcvV0M9Jkd20DJ%2FMBOND%20LOGO.svg?alt=media\&token=6a50a736-7d09-4c1e-8b91-3252d94b4915) MBOND - Meerkat Bonds

```
0x1ee8d716247675C6909E85DBe73a2F37173fc229
```

Meerkat Bonds (**MBOND**) main job is to help incentivise changes in SVN supply during an epoch contraction period. When the TWAP (Time Weighted Average Price) of SVN falls below 1 MMF,  MBONDs are issued and can be bought with SVN at the current price. Exchanging SVN for MBOND burns SVN tokens, taking them out of circulation (deflation) and helping to get the price back up to 1 MMF. These MBOND can be redeemed for SVN 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 SVN when it is above peg, helping to push it back toward 1 MMF.

{% hint style="info" %}
Contrary to early algorithmic protocols, MBOND do not have expiration dates. 
{% endhint %}

All holders are able to **redeem** their **MBOND** for SVN tokens as long as the Treasury has a positive SVN balance, which typically happens when the protocol is in epoch expansion periods.