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 Pirate Finance.

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

Getting Started

Why Pirate Finance?

Why have 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 $GOLD could mean for you as an investor, let’s break down the potential impact of $GOLD’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.

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 Fantom $FTM to go around?

If $GOLD 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 $FTM 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 $GOLD?

$GOLD aims to become the primary utility token of the FTM ecosystem, and the first step is its role in Fantom, Fantom’s first incubator & launchpad. The selection, development, and deployment of the next generation of Fantom DeFi projects will be decided by those who hold $GEM, Pirate Finance’s governance token (affectionately referred to as “the money printer” by gravediggers on moon). Oh, and we’re just getting started.

“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 $GOLD is OVER the peg:

-Buy $GOLD and pair it with $FTM to provide liquidity, and stake your GOLD-FTM LP in the farm to earn $GEM share rewards. -Take your $GEM rewards and stake them in the Boardroom to earn inflationary $GOLD rewards. -Sell half of your earned $GOLD for $FTM, and compound it back into the GOLD-FTM LP. -Profit!

If $GOLD is UNDER the peg:

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

2.Sell $BOMB for a redemption bonus once $GOLDis back over peg (above 1.1 TWAP).

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

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

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

(Please Note: Always proceed with caution. We DO NOT recommend putting more than 5% of what you are staking on GOLD 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.)

Terms and Mechanisms

"What is an expansionary epoch?"

An expansionary epoch is the amount of $GOLD that is printed by $GEM 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.

“What is compounding in the context of Pirate 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.

Boardroom

“Once GEM Shares are emitted, does the Boardroom stop printing $GOLD until we are above peg again?”

Staking $GEMs will give you $GOLD rewards when the price of $GOLD is above the peg (FTM), but not when it is under the peg.

“What happens if I interact with the Boardroom in any way?”

Any interaction with the boardroom will reset both timers. That's 1 epochs (6 hours) to withdraw your GOLD rewards, and 2 epochs to unstake your GEM Shares (12 hours).

“Are the boardroom 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.

"If I remove my $GEM from Boardroom without first collecting my $GOLD, will it be lost forever?"

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

"The Boardroom 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 $BOMB to be redeemed.

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

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

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

The debt phase will last as long as is necessary to adequately pay back outstanding $BOMB 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 $BOMB 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 $BOMB. If the debt phase is ended too early, and then the treasury doesn't have enough $GOLD to repay the $BOMB bonus, then the APR restriction would need to be turned back on.

"At the end of the epoch, the Boardroom did not print $GOLD, and then no $BOMB(s) were issued in the pit. Why?"

There is a balanced state "at peg" when $GOLD's TWAP is between 0.100 and 0.101, and this means there is neither contraction nor inflation.

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

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