ToxicDeer
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FAQs

Who is behind ToxicDeer and what is the motivation behind?

ToxicDeer is brought to you by the team behind ToxicDeer Finance.
This sincerity will help to expand on the Meerkat universe by creating partners and expand on the ToxicDeer 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.
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Generally speaking, what's the easiest flow to follow for compounding rewards?

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 DEER is OVER the peg:
  1. 1.
    Buy DEER and pair it with USDC to provide liquidity, and stake your DEER-USDC LP in the Banks to earn XDSHARE rewards.
  2. 2.
    Take your XDSHARE rewards and stake them in the Boardroom to earn inflationary DEER rewards.
  3. 3.
    Sell half of your earned DEER for USDC, and compound it back into the DEER-USDC LP.
If DEER is UNDER the peg:
  1. 1.
    Buy DEER and exchange it for XDBOND. If you are LP'ing, you can break the LP to exchange DEER for XDBOND, and use the remaining USDC to buy DEER to also exchange for XDBOND. Now you have a big fat bag of XDBOND, and you've also helped bring DEER back above peg so that the Boardroom can resume printing.
  2. 2.
    Sell XDBOND for a redemption bonus once DEER is back over peg (above 1.1 TWAP).
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What is 50/50?

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 DEER stay above the peg for longer to keep the Boardroom printing. This, in turn, attracts new investors and keeps the ecosystem growing.
  1. 1.
    When you claim your DEER rewards in the Boardroom, sell 50% of them for USDC.
  2. 2.
    When you go to provide DEER-USDC LP, stake the entirety of your remaining DEER with the USDC you've just purchased.

APR is much higher in the Boardroom than in the Banks for DEER-USDC LP. Why would I not just invest everything there?

The Banks APR is linear and prints 24/7, regardless of DEER relation to the peg. Boardroom, on the other hand, prints only when DEER TWAP is above 1.001. Therefore, it may not always be that an investor gets a higher return from the Boardroom than from the DEER-USDC pool. Because DEER follows the price of USDC, the DEER-USDC LP is akin to holding USDC in your wallet, except with the bonus of a high farming APR on top of it. In other words, if you're bullish on USDC's price action, the DEER-USDC LP is a way of holding exposure to that single asset while also reaping high APRs.

What is an expansionary epoch?

An expansionary epoch is the amount of DEER that is printed by XDSHARE 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 14% of the existing circulating supply each day, at the end of the 3 days you'd have 100*1.14*1.14*1.14 = $148.1544.
Then, let’s say the emissions decrease to 5% per day.
You’d then have have $148.1544 *1.14*1.14*1.14 = $219.4 at the end of this second epoch.
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What is compounding in the context of ToxicDeer?

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.
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What is the purpose of $DEER? What is the purpose of $XDSHARE?

The $DEER token is a mirror-ed asset to the USDC token. The main utility at the beginning, is to allow you to use DEER-USDC LPs to earn more $DEER and more $XDSHARE. Eventually, DEER tokens will be adapted for events like launchpads etc. $XDSHARE token is a token that allows you to earn $DEER and $XDSHARE. The mechanism for earning is largely different from that of the $DEER token. $XDSHARE token can be staked singly in order to earn $DEER. If you wish to use $XDSHARE token to earn more $XDSHARE, you will need to provide $XDSHARE-USDC LPs. Both tokens acts as incentives to promote holding of the other token. Since $XDSHARE 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 $DEER inflation.
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With the 1:1 pegging, does it make sense to still purchase DEER after launchpad?

Yes. The main event is truly “XDShares farming”.
KEY Reason (ALPHA): You will be able to earn $XDSHARE that is the centrepiece of ToxicDeer Finance. The reason being, $XDSHARE will be limited in supply, allows you to claim DEER inflation (means you earn more when the network grows), will provide higher APR farming for when you perform XDSHARES-USDC LP farming.
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Why are you pegging it 1:1? This seems like it is not creating value for investors?

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 DEER token is always above, or at peg. The only way an investor “loses value” is when DEER 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 Deer team has put into place to ensure that DEER tokens will not stay under its peg for prolonged periods of time. This translates to way lower risk for users who intend to participate.
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