Elephant Treasury (BERTHA)
The Elephant treasury (AKA Bertha) is the ELEPHANT reserve of funds that is used to absorb the circulating supply of ELEPHANT and also provide funding towards payouts for the redemption pool and Elephant Money Futures claims.
Since the Elephant treasury acts as a large player, it will collect RFI rewards from incoming trading volume from ELEPHANT and always ensure a managed redemption of 1:1 regardless of peg.
This means that players will always be able to redeem TRUNK for $1 USD worth of assets, as long as they are willing to wait in the redemption queue for the system to receive the funds to process their order.
A peg support governance strategy (5% APR) on the treasury is used to buy TRUNK and also add liquidity to the TRUNK/BUSD LP pair. As the Elephant treasury grows through minting/bonding, the inflows of the redemption pool will exceed the outflows allowing the system to operate in a steady state.
Last modified 10d ago