Operation Regain PEG: Maintaining PEG Guide
This is the third article in the series, I recommend reading the first two if you haven’t yet:
March 3 Operation: Regain PEG & xBOMB Promo
March 5 Day 2: Regain PEG + xBOMB Status Update
Importance of PEG
It is critical for numerous reasons for us to remain close to peg at all times. In the next few weeks, it is especially important for us to maintain a positive peg:
- We need a few days to establish relationships with partners, who had the requirement of being over 1.0 peg
- All the action on BOMB recently has gotten more eyes on the project, let’s maintain that healthy peg and show them how strong #BOMBERS are!
- We can quickly get out of debt phase with consistent printing
- Building a nice buffer above peg (1.1–1.2 range) will allow those who choose to go back to farming, the ability to do it without negatively effecting our ability to print!
- Show some love to the BBOND holders! We have some great members of the community who have been holding onto their BBONDs for quite a while. Let’s give them a chance to redeem with some bonus above 1.1!
How to Help Maintain Peg
Simple! Don’t sell BOMB!
xBOMB will continue to pay an aggressive APR, especially once we are out of the debt phase and our boardroom is providing 100% of rewards instead of 35%. Currently, APR on xBOMB from minted BOMB, based on just 35%, is 188% annually. It will be well over 1% per day once we are out of debt phase.
Suggested Actions to Benefit All Protocol Participants
- Do not sell any BOMB until we are over 1.15 peg
- For BSHARE stakers, the higher BOMB peg, the more attractive BSHAREs are to potential buyers. Dumping all of your BOMB will reduce how often we print, and cause BSHARE value to drop. Put all reward BOMB into xBOMB until over 1.15 peg.
- For current xBOMB stakers, leave xBOMB staked until over 1.15 peg at minimum. Once out of debt, xBOMB will pay over 1% per day, until much more BOMB gets staked.
The above actions are suggestions, which if we all follow, will improve the value of all protocol assets and attract many new investors.
But I Want to Farm Now!
I know many of you will be eager to get back to your farms. I don’t blame you, farming the BOMB-BTCB pair is my favorite investment in the world! Even with how much I love to farm BOMB-BTCB, I won’t be re-entering until it is safe to sell small chunks of BOMB without impacting peg.
Please keep in mind that if we all follow the suggestions above, our higher farming APRs will cause many new investors to join the protocol, which requires the buying of our assets. That buying will increase peg, and allow a very easy transition from xBOMB / Boardroom rewards into farming.
Let’s show everyone how strong we are, and jump right past 1.0 to 1.15–1.2 peg!!
#BOMBERS — See you at 5B TVL !