FAQ

For all your pressing questions!

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 Dante Finance.

Why Dante Finance?

Tomb finance's idea was to tackle the problem of the lack of $FTM supply due to many $FTM coins being staked. Our goal is to support the tomb ecosystem and give more utility and liquidity to the $TOMB token while playing our own project.

Getting Started

1.“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 $DANTE is OVER the peg:

-Buy $DANTE and pair it with $TOMB to provide liquidity, and stake your DANTE-TOMB LP in the purgatory to earn $GRAIL rewards. -Take your $GRAIL rewards and stake them in the Eden to earn inflationary $DANTE rewards. -Sell half of your earned $DANTE for $TOMB, and compound it back into the DANTE-TOMB LP. -Profit!

If $DANTE is UNDER the peg:

1.Buy DANTE and exchange it for DBOND. If you are LP'ing, you can break the LP to exchange $DANTE for $DBOND, and use the remaining $TOMB to buy $DANTE to also exchange for $DBOND. Now you have a big fat bag of $DBOND, and you've also helped bring $DANTE back above peg so that the Eden can resume printing.

2.Sell $DBOND for a redemption bonus once $DANTE is back over peg (above 1.1 TWAP).

3.Profit.

2. "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 $DANTE stay above the peg for longer to keep the Eden printing. This, in turn, attracts new investors and keeps the ecosystem growing.

1)When you claim your $DANTE rewards in the Masonry, sell 50% of them for $TOMB.

2)When you go to provide DANTE-TOMB LP, stake the entirety of your remaining DANTE with the $TOMB you've just purchased.

3.“There's so many auto-compounding vaults, what should I do?”

If you are in a $DANTE-TOMB LP auto-compounding vault, you are creating buy pressure on $DANTE. If you are in a $GRAIL-FTM LP auto-compounding vault and you also hold $GRAIL elsewhere, the auto-compounding vault will be suppressing its price since it is continuously selling $GRAIL.

(Please Note: Always proceed with caution. We DO NOT recommend putting more than 5% of what you are staking on Dante into a single auto compounder. Defi involves significant risks and users should manage risks accordingly. For example, users should only put in what they are willing to lose. DO NOT invest your life savings and do your homework before getting active in Defi.)

4. "APR is much higher in the Eden than in the Purgatory for DANTE-TOMB LP. Why would I not just invest everything there?"

The Purgatory APR is linear and prints 24/7, regardless of Dante's relation to the peg. Eden, on the other hand, prints only when Dante's TWAP is above 1.01. Therefore, it may not always be that an investor gets a higher return from the Eden than from the DANTE-TOMB pool.

Because $Dante follows the price of $TOMB, the DANTE-TOMB LP is akin to holding $TOMB in your wallet, except with the bonus of a high farming APR on top of it. In other words, if you're bullish on $TOMB's price action, the DANTE-TOMB LP is a way of holding exposure to that single asset while also reaping high APRs.

Terms and Mechanisms]

1. "What is an expansionary epoch?"

An expansionary epoch is the amount of $DANTE that is printed by $GRAIL 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 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.

2. “What is compounding in the context of Dante 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.

After 365 days, compounding once daily: $4,848,272.

Eden (Boardroom)

1.“Once Dbonds are emitted, does the Masonry stop printing $DANTE until we are above peg again?”

Staking $GRAILs will give you $DANTE rewards when the price of $DANTE is above the peg (TOMB), but not when it is under the peg.

2. “What happens if I interact with the Eden in any way?”

Any interaction with the eden will reset both timers. That's 3 epochs (18 hours) to withdraw your DANTE rewards, and 6 epochs to unstake your Grails (36 hours).

3. “Are the Eden 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 $GRAIL from Eden without first collecting my $DANTE, will it be lost forever?"

No, it will still be there to collect whenever you need.

5. "The Eden 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 $DBOND to be redeemed.

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

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

6. "If we're in a debt phase, how long will it last until Eden continues printing as normal?"

The debt phase will last as long as is necessary to adequately pay back outstanding $DBOND debt. Please keep in mind that the DAO will also need to collect a little extra, as there needs to be a cushion to cover the bonuses when people redeem $DBOND over peg.

There's no exact way of calculating how many epochs it takes, since we don't know exactly when people will redeem their $DBOND. If the debt phase is ended too early, and then the treasury doesn't have enough $DANTE to repay the $DBOND bonus, then the APR restriction would need to be turned back on.

7. "At the end of the epoch, the Eden did not print $DANTE, and then no $DBOND(s) were issued in the pit. Why?"

There is a balanced state "at peg" when $DANTE's TWAP is between 1.00 and 1.01, and this means there is neither contraction nor inflation.

8. "If DANTE continues climbing above the price of the peg, will that influence how long the debt epoch lasts?"

Depending on the price of Dante, the Eden print will have to adjust to provide a buffer for any unclaimed DBOND. As the price of DANTE climbs above the peg, more DANTE needs to be distributed to the treasury to account for DBOND bonus redemption.

Purgatory

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

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

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

When $DANTE is pegged or close to being pegged to $TOMB, 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.

3. "Wait, you mean that if $TOMB pumps, $DANTE pumps with it?"

Yes!

Let's take an example:

If $TOMB pumps in price, it won't 'outrun' $DANTE.

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 $TOMB rises in $USD value, $DANTE goes with it. Same if $TOMB falls in $USD value, $DANTE will be worth less in $USD, but it won’t affect the peg. The only thing that can change the price of $DANTE in terms of its $TOMB value is buying and selling it.

Ecosystem Partners

Calculating Rewards

1. “How can I figure out what my future $DANTE rewards will be from the Eden?”

Simplified example for a non-debt phase: say you have 1 $GRAIL staked out of 10 total $GRAILs staked in Eden, so you will get 10% of the total $DANTE emissions.

So, for this example we are assuming that there is a total circulating supply of 10,000 $DANTE, the current expansion rate is at 4%, and therefore 400 $DANTE will be emitted.

You would get ((0.04 * 10000) * 0.8) * (1/10) = 32 $DANTE.

With current regulations, this is the distribution breakdown: -80% of printed $DANTE goes to $GRAIL stakers. -18% goes to DAO-fund. - 2% goes to the devs.

Formula to calculate your rewards: ((ExpansionRate * CirculatingTOMBSupply) * 0.8) * (YourGrailStake/TotalGrailStaked)

2. “How long will it take for Grail to pay itself off from $DANTE 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 $DANTE.

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 Grails you have staked to see what your daily rewards are.(In this example, we have 5 Grails, 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 Grails, and divide it by your daily rewards. If you bought these 5 Grails 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.