Frozen Walrus

Goal

The goal of this project is to give people a safe, sustainable farming protocol that works with a long-term vision, exciting new features, and educational materials that aim to garner a large group of collectively educated investors. We aim to make the $WLRS token something that people will buy regardless of their knowledge of the underlying seigniorage protocol, giving the token terminal utility and a future to stand on its own!

It is also important to know, that Frozen Walrus is not trying to attract people with high APR or extremely unsustainable yields. This is a long-term project with extremely rewarding yields for the average investor. We plan on doing things differently so that you can sustain an ever-growing portfolio here at Frozen Walrus with many benefits to holding our tokens.

Simplified Overview of a Tomb Fork

• There are 3 tokens: $WLRS, $WSHARE, $WBOND

• There is 2 main ways to use a tomb fork, the boardroom and the farms.

• There is a token that all Tomb forks choose to peg to. Frozen Walrus pegs to USDC.e.

• IF $WLRS is greater than the value of $USDC.e, the boardroom will inflate the supply of $WLRS.

  • This means that if you have $WSHARE in the boardroom during an epoch that the TWAP is over 1.01 you will receive $WLRS tokens.

• The farms will always emit $WSHARE REGARDLESS of the price action of $WLRS & $USDC.e.

• When the supply of $WLRS becomes too inflated, or the demand goes down and the price goes below the value of $USDC.e then the boardroom does not print that EPOCH.

  • The protocol is meant to have expansion and contraction phases to constantly move $WLRS closer to 1:1 with $USDC.e.

  • $WBOND's tokens become available if an EPOCH does not print(when TWAP of WLRS is below 1). There is a limited amount sold per EPOCH and the goal is you exchange your $WLRS for $WBOND thus reducing the supply temporarily causing the intrinsic value of each $WLRS to have a higher price impact making it easier to reach peg.

  • $WBOND can be redeemed after an epoch where TWAP is over 1.01. Please read our section on bonding to understand the risk/reward of bonding.

In short...

This push and pull of supply constantly adds and reduces volatility to $WLRS. Similar to a rubber band effect the supply expands and contracts to become less and less volatile and more and more inline with a 1:1 value of $USDC.e.

When investing in a tomb fork, a collective mindset in the community is needed as you will be moving your positions around to either support the peg by breaking your Liquidity Pool tokens and increase volatility (making it easier to reach peg) or adding to liquidity pools (decrease volatility).

Going Under Peg

Some seem to believe that going under peg is a bad thing, or that all hope is lost. It is a major point of contention in the tomb fork communities and can often lead to an early demise. It is important to understand these protocols are MEANT to go UNDER peg at some point. Once inflation becomes unsustainable there are measures in place to contract the supply and bring you back over peg to then start the cycle over.

Why peg to USDC.e?

The team made the decision to peg to USDC.e because:

• We needed stability in the token we peg too, as after launch we will be getting closer to $1 and once we are close the impermanent loss risk is much lower.

• USDC.e is backed by collateral of real world assets that can always be redeemed by the user for $1

• You can read more about the issuer of USDC.e here.

So what do I do with my FARMING/BOARDROOM rewards?

This is a free market and no one can tell you what to do with your rewards. The best suggestion I can give you is:

Always look to take healthy profits over time, but not all at once.

Everyone who does this in the ecosystem will increase their odds of long term sustainable yields. Re-investing your rewards into new LPs on the protocol will strengthen Frozen Walrus and the longevity of your daily rewards.

When will liquidity be added for $WLRS or $WSHARE from the team?

This is a common misconception for Tomb protocol launches. Liquidity is not normally added from the team, but by the investors through incentivized farm pools. These pools are what gives incentive for investors to LP $WLRS and $WSHARE to decrease volatility and happens shortly after farms go live. How much is dependent on the success of the launch, and farm APR's.

Tokens

$WLRS - Walrus

Walrus token ($WLRS) is designed to be used as a medium of exchange. The built-in stability mechanism in the protocol aims to maintain $WLRS's peg of 1 $WLRS : 1 $USDC.e in the long run.

$WSHARE - Walrus Shares

Walrus Shares ($WSHARE) are one of the ways to measure the value of the Frozen Walrus Protocol and shareholder trust in its ability to maintain $WLRS close to peg. During epoch expansions, the protocol mints $WLRS and distributes it proportionally to all $WSHARE holders who have staked their tokens in the Boardroom.

$WSHARE holders have voting rights (governance) on proposals to improve the protocol and future use cases within the WLRS money ecosystem.

WSHARE has a maximum supply of 60000 tokens distributed as follows:

• DAO Wallet: 11500 WSHARE over 12 months (500 sent at launch)

  • The airdropped amount can be used for early LP to help stabilize prices.

• DEV Wallet: 5640 WSHARE over 12 months (360 sent at launch)

  • For giveaway winners, and payments.

• Farming Rewards: 33722 WSHARE

• Emissions for WSHARE will end May 2023

Bonds

What are WBOND (Bonds)?

Bonds are unique tokens that can be utilized to help stabilize WLRS price around peg (1 USDC.e) by reducing circulating supply of WLRS if the TWAP goes below peg.

When can I buy WBOND (Bonds)?

WBOND can be purchased only on contraction periods, when TWAP of WLRS is below 1.

Every new epoch on contraction periods, WBOND are issued in the amount of 3% of current WBOND circulating supply, with a max debt amount of 35%. This means that if bonds reach 35% of circulating supply of WBOND, no more bonds will be issued.

Note: WBOND TWAP (time-weighted average price) is based on WLRS price TWAP from the previous epoch as it ends. This mean that WLRS TWAP is real-time and WBOND TWAP is not.

Where can I buy WBOND (Bonds)?

You can buy WBOND if any are available, through the BONDS on Frozen Walrus Bond page, anyone can buy as many WBONDs as they want as long as they have enough WLRS to pay for them.

There is a limited amount (3% of WLRS current circulating supply) of available WBOND per epoch while on contraction periods, and are sold as first come first serve.

Why should I buy WBOND (Bonds)?

First and most important reason is Bonds help maintain the peg, but will not be the only measure use to keep the protocol on track.

WBOND doesn't have an expiration date, so you can view them as an investment on the protocol, because long term you can get benefits from holding bonds.

Incentives for holding WBOND

The idea is to reward WBOND buyers for helping the protocol, while also protecting the protocol from being manipulated from big players.

So after you buy WBOND using WLRS, you get 2 possible ways to get your WLRS back:

1. Sell back your WBOND for WLRS while peg is between 1 - 1.1 (1 USDC.e) with no redemption bonus. This to prevent instant dump after peg is recovered

2. Sell back your WBOND for WLRS while peg is above 1.1 (1 USDC.e) with a bonus redemption rate

The longer you hold, the more both the protocol and you benefit from WBOND.

So, which one is better?

• If I buy WLRS at 0.8, and hold it until 1.15 and then sell, I'm getting +0.35$ per WLRS

• But, if I buy WLRS at 0.8, burn it for WBOND, and redeem it at 1.15, I'm getting 1.105 WLRS * 1.15 (WLRS current price) = 1,271 (+0.47$) per WBOND redeemed.

• But what if getting back to peg is taking too long ?

We are going to adjust our use cases, to have different behaviors on contraction and expansion periods to benefit WLRS and WBOND holders when needed.