# FAQ

Please note that none of this is financial advice. You should do your due diligence to become an informed investor by doing your own research, coming to your own conclusions, and taking note of the risks and responsibilities associated with participating in Tomb.Finance.

Again: this is an experimental, high-risk project with potential for enormous rewards, but jumping in without taking the time to become informed is a sure way to end up with lasting regrets.

The team is available in the Discord to answer questions, so please reach out if they're not answered here!

# Why Tomb.Finance?

Ok, so what the hell is the point of having a token that’s pegged to the price of $FTM when you could just use$FTM itself instead?

Good question. But before we dive into what $TOMB could mean for you as an investor, let’s break down the potential impact of$TOMB’s long-term success on the Fantom ecosystem as a whole.

For Fantom to continue running as the fast, secure, and cost-effective blockchain we all know and love, its validator nodes will continue to rely on its $FTM token remaining staked and locked up.$FTM is distributed as a reward to validator nodes, which will continue to increase in number to sustain the network's growth, whereas the $FTM token itself has a fixed maximum supply. At the time of writing this, the staking requirement for a validator node requires 3,175,000$FTM, and "if the rewards stay at the current levels (depending on governance decisions), it will take more than two years to distribute all the rewards and to reach a full circulation of the total supply... and All the tokens taken together will never exceed the total cap of 3.175 billion FTM."

So if $FTM is intended to be "ideal for sending and receiving payments" as a decentralized alternative to stablecoins, what will happen when there just isn’t enough Opera-native$FTM to go around?

If $TOMB succeeds in holding the peg, this will create a mirrored, liquid asset that can be moved around and traded without restrictions, all while benefiting from the price appreciation of the native$FTM token. Reaching the peg and holding the peg is crucial, and this will ultimately be what drives the value of $TOMB for investors. In the short term, this would mean attractive APRs for liquidity providers on what would essentially be a stable pair. So, once a liquid market is the norm, what happens next? What are some other reasons you’d want to hold$TOMB?

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. ## 3. “What is compounding in the context of Tomb.Finance?” 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.

## 3. "What is the current service fee for selling $TOMB?" Governance Proposal #3 has been passed, and the new gatekeeper service fees can be found here: ## 4. "I hate taxes, so why do I have to pay this stupid fee when selling$TOMB?"

Let's clear up some terminology: when selling above peg, the Tomb community refers to this "tax" as a "service fee," because it has been built in with the explicit purpose of protecting investors and their underlying investment in the long run. It makes sense to think of the "service fee" as a "punitive tax" only when one is selling $TOMB below peg, as doing so negatively impacts the individual investor, the protocol, and the rest of the community. (Pro tip: instead of selling below peg, you can just swap your$TOMB for $TBOND tax-free, help the protocol, and profit from it once it goes back above peg.) One of two things happen with the service fee you pay: • Action 1: When the price is too far away from peg (+10% above), half of the collected$TOMB will be sold for $FTM, paired with the remaining$TOMB, and added as liquidity.

Staking $TSHAREs will give you$TOMB rewards when the price of $TOMB is above the peg (FTM), but not when it is under the peg. ## 2. “What happens if I interact with the Masonry in any way?” Any interaction with the masonry will reset both timers. That's 3 epochs (18 hours) to withdraw your TOMB rewards, and 6 epochs to unstake your Tshare (36 hours). ## 3. “Are the masonry rewards pro-rated by time? I.e if I stake three hours before the end of an epoch vs five hours before the end of an epoch, do I get different rewards?” No, it's determined by how much you have staked at the time of printing (i.e. end of one epoch and start of the other). It doesn't matter if you stake 3 hours before or 30 seconds before the emissions occur. ## 4. "If I remove my$TSHARE from Masonry without first collecting my $TOMB, will it be lost forever?" No, it will still be there to collect whenever you need. ## 5. "The Masonry APR dropped because we're in a 'debt phase.' What does this mean?" A debt phase takes place on the expansion epochs that start after a contraction period where there are still$TBOND to be redeemed.

65% of Expansion during Debt Phase is allocated to the Treasury Fund to prepare for the TBOND Redemption. This amount is still reserved whether or not TBOND holders are redeeming bonds or not.

Once TOMB in treasury is sufficiently full to meet all circulating bond redemption, expansion rates will resume to normal.

# Cemetery

## 1.“What will happen when circulating supply = Total supply? Will emissions stop?”

Yes. Once the max supply of $TSHARE (70K) is reached, emissions stop. This is going to be in a little less than a year from the time of writing this.$TSHARE will always print $TOMB in the Masonry, though, as long as$TOMB is above peg.

## 2.“Why is ‘at-peg’ (TWAP between 1.00 and 1.01) the best time to provide liquidity?”

When $TOMB is pegged or close to being pegged to$FTM, it is more akin to having exposure to a single asset (single staking) than to your traditional LP'ing experience, where you would run the risk of impermanent loss if one of the tokens went up in value and the other did not.

Yes! Let's take an example: If $FTM pumps in price, it won't 'outrun'$TOMB. The APR will vary in terms of its $USD value, but emissions won’t. This is something that wouldn't be possible with another 1:1 pegged asset like a stable coin LP position, where the$USD value is directly tied to the emissions. If $FTM rises in$USD value, $TOMB goes with it. Same if$FTM falls in $USD value,$TOMB will be worth less in $USD, but it won’t affect the peg. The only thing that can change the price of$TOMB in terms of its $FTM value is buying and selling it. # Ecosystem Partners ## 1.“How do auto-compounding vaults like MLNL work?” Staking either$TOMB/$FTM or$TSHARE/$FTM LPs in these vaults rewards you with more of the same LP (liquidity pool) tokens that you have deposited. They deposit your LP tokens in the same yield farms that are available to everyone on$TOMB.finance, and then, every set amount of minutes, they harvest the $TSHARE that you’ve earned, sell a portion of if, and use the proceeds to mint more LP tokens on SpookySwap, before finally depositing those LP tokens back into the$TOMB.finance pools, growing your allocation.

You can actually do this yourself if you prefer not to have to pay fees; it’s simply a service offered as a time-saver for those that don’t want the hassle of going through the whole process themselves all day every day.

Note on the tokenomics of auto-compounding: Both the $TSHARE/FTM LP and the$TOMB/$FTM LP pools pay rewards in$TSHARE: If you’re in the $TSHARE/$FTM pool, 50% of your $TSHARE rewards are sold for$FTM each time the protocol auto-compounds. If you’re in the $TOMB/$FTM pool, 100% of your reward is sold and used to purchase half $TOMB and half$FTM each time. Unlike the TOMB/FTM vault, the TSHARE/FTM vault does not put any buy pressure on $TOMB. # Calculating Rewards ## 1. “How can I figure out what my future$TOMB rewards will be from the Masonry?”

Simplified example for a non-debt phase: say you have 1 $TSHARE staked out of 10 total$TSHAREs staked in Masonry, so you will get 10% of the total $TOMB emissions. So, for this example we are assuming that there is a total circulating supply of 10,000$TOMB, the current expansion rate is at 4%, and therefore 400 $TOMB will be emitted. You would get ((0.04 * 10000) * 0.8) * (1/10) = 32$TOMB. With current regulations, this is the distribution breakdown: -80% of printed $TOMB goes to$TSHARE stakers. -18% goes to DAO-fund. - 2% goes to the devs.

Formula to calculate your rewards: ((ExpansionRate * CirculatingTOMBSupply) * 0.8) * (YourTShareStake/TotalTShareStaked)

## 2. “How long will it take for Tshare to pay itself off from $TOMB rewards, based on current prices?” This will vary constantly as the APR in the masonry fluctuates, along with other variables such as the price of$TOMB.

For a quick estimation, however, you can do the following:

1) Take the total APR shown in the masonry, and divide that by 365 to get the daily APR. (In this example, we will say the daily APR is 5%.)

2) Multiply that daily APR by the current market price of the total Tshare you have staked to see what your daily rewards are.(In this example, we have 5 Tshares, each worth $500, for a total amount staked of$2500. Your daily return is $2500 * .05, which comes out to$125/day.)

3)Take your initial buy-in price for Tshares, and divide it by your daily rewards. If you bought these 5 Tshares at a higher price of $700, for example, in the current market conditions you will recover your initial investment ($3500) in 3500/125 = 28 days.

## 3. “Does a higher TVL mean a higher APR?”

The more TVL in the pool, the less APR (there's more people getting the same piece of the pie), but the higher the price of the reward (the pie) the higher the APR (better quality of pie). In other words, although the same rewards are diluted across more investors, if those rewards have a higher dollar value because of the increase in TVL, then it can actually lead to a higher APR as well.

Never put all your funds in one basket, even if it's $TOMB. Always take gains along the way. The Tomb team views it as a success if, over time, everyone gets their initial investment back into their wallets and continues investing with the profits that come after that. # Contractions and$TBOND

## 1. "When can I swap $TOMB for$TBOND?"

$TBOND will only become available in the Pit following epochs in which the Time Weighted Average Price (TWAP) of$TOMB is under peg. This means that $TOMB's price will have had to have been under 1$FTM for the majority of the previous epoch in order to trigger the Pit to "open".

For example: If, during the previous epoch, the ratio of $TOMB to$FTM had been 1.2 for 5 hours, but dipped to 0.9 in the final hour, the Pit will not open, as the TWAP would be higher than 1. Conversely, if $TOMB's price is at 0.9 that of$FTM for 5 hours, but spikes to 1.25 in the final hour, the Pit will remain open during the following epoch, since the TWAP is less than 1.

The Pit will always open at the very beginning of a new epoch, and remain open for the entire epoch — the Pit can not and will never open mid-epoch — and during epochs in which the Pit is open, $TOMB will not be printed in the Masonry. ## 2. "What is the formula to calculate the redemption bonus for$TBOND?"

To encourage redemption of $TBOND for$TOMB when $TOMB's TWAP > 1.1, and in order to incentivize users to redeem at a higher price,$TBOND redemption will be more profitable with a higher $TOMB TWAP value. The$TBOND to $TOMB ratio will be 1:R, where R can be calculated in the formula as shown below: $R=1+[(TOMBtwapprice)-1)*coeff)]$ $coeff = 0.7$ To further illustrate why the longer you hold$TBOND the more profitable it is, let's take an initial $1000 investment into consideration. In this example, say this$1000 is used to buy $TOMB when$TOMB TWAP is 0.95 and then swapped for $TBOND. If these$TBOND are redeemed when: - $TOMB TWAP is 1.5, your investment would now be worth$1421. -$TOMB TWAP is 2, your investment would now be worth$1789. -$TOMB TWAP is 3, your investment would now be worth$2526. -$TOMB TWAP is 5, your investment would now be worth$4000.

## 4. "When can I swap $TBOND back to$TOMB?"

You can swap it back again when the following two criteria are met:

Like anything else in crypto, obtaining $TBOND is not risk-free. Just like in the real world, you are purchasing debt from the protocol with the expectation that you will be redeemed at a premium in the future. To date, this has occurred after all contractions, but past performance does not guarantee the same future outcomes.$TBOND is ideal for those with a medium to long-term time preference, as it incentivizes hodling in exchange for potentially extremely lucrative rewards. If you are looking for a quick flip or have short-term time preference, $TBOND may not be the right investment option for you. ## 6. "What's the benefit of the most recently passed governance proposal where you can now swap$TBOND directly for $TSHARE?" This was rolled out to further incentivize holding$TBOND. $TBOND holders will be able to exchange$TBOND directly for $TSHARE any time it's available, and the$TSHARE will be dropped in random increments in order to prevent any one individual from acquiring the bulk of it.

Those who are already staked in Masonry and are accumulating more $TSHARE with their$TOMB rewards are paying a service fee (tax) on each $TOMB sell. The opportunity to swap$TBOND directly for $TSHARE should incentivize investors to have$TBOND on hand at all times, as they'll be able to buy more $TSHARE than they would directly with$TOMB.

For example, if you print 100 $TOMB and want to buy$TSHARE, the sell tax (at the time of writing) means you'd get ~85 $TOMB worth of$TSHARE. If, instead, you print that $TOMB and swap it for$TBOND which is tax-free and then swap that for $TSHARE (also tax-free), you would now get 100$TOMB worth of $TSHARE instead of 85$TOMB.

## 7. "Please, ELI5. Why do people keep saying $TBOND is a longer-term investment?" Say, for example, that you buy 5,000$TBOND at the time of writing this. That's about $1,000. Then, say the market flips super bullish and$FTM goes back to $0.60 and$TOMB pushes up to $0.90. You could redeem your$TBOND at that point for 11,250 $TOMB, which would be worth$10,125.

That's over $9K in profit if you hold your$TBOND.

# Governance Proposals

## Proposal #1: Add a TSHARE-TBOND swap function​

Status: PASSED on 07/24/2021 with a 73.19% vote for YES.

## 3. “What’s the advantage of participating in FTMpad as an investor? Does launching on Tomb's FTMpad mean the project has been thoroughly vetted, and therefore that I as an investor can rely on Tomb's assurance, compared to if I were to buy it from somewhere else?"

Tomb does not represent nor guarantee the particular outcomes of any investment. That being said, the Tomb team will perform thorough vetting of each project in accordance with best practices. Investors should still always do their own research.

As an early-stage investor, participating in FTMpad will give you access to an immediate discount, intimate knowledge about the project’s development before it reaches the broader public, and a relationship with the community built around it during its incipient stages.

# Concerns and Panic

## 2.“I bought $TOMB/$TSHARE 3 minutes ago/yesterday/last week and now its market price is less than what I bought it for. How could this be!?”

“What things cost under earlier conditions is history; what the supply and demand are today is economics." -Thomas Sowell, Basic Economics: A Citizen's Guide to the Economy

## 5. "Why can't I swap $TOMB for another token on Spooky?" It's likely you have not set the correct slippage. Refer to the gatekeeper chart for the current taxes and recommended slippage. If you've done this and it still does not work, try the following troubleshooting steps in order: -Make sure you're swapping$TOMB -> $FTM directly. -If that doesn't work, try$TOMB -> $TSHARE ->$FTM -Remove decimals so that you're trading a round number of $TOMB. -Refresh your page and try again. -Restart your browser and try again. -Switch to a different RPC URL and try again. ## 6. "Help! I used the "zap" feature to provide LP, and I paid the service fee." The zap is a newer functionality that has still not been updated to work around the LP tax. For the time being, only providing liquidity through Spooky's UI or through the Tomb.finance website's "liquidity" tab is tax-free. ## 7. "Won't the gatekeeper service fee prevent$TOMB from being listed on a centralized exchange?"

First and foremost, Tomb does not currently have plans nor intentions to list on an CEX. At the moment, the goal is working towards increased decentralization. The Gatekeeper fee is a temporary safeguard, and may be removed altogether once \$TOMB is liquid enough. Therefore, if a future governance proposal on a CEX listing was voted in, the service fee would not be a technical issue.