The TRUNK Turbine plays a crucial role in Elephant Money's ecosystem by accumulating and holding TRUNK as a long-term store of value. Its key responsibilities include:

  1. Asset Diversification: The TRUNK Turbine diversifies Elephant Money's treasury holdings by incorporating TRUNK (deflationary cross-chain memecoin) into its asset portfolio. This reduces the protocol's reliance on a single asset and mitigates risks associated with market volatility.

  2. Value Appreciation: By continuously accumulating and holding TRUNK, the TRUNK Turbine aims to benefit from TRUNK's potential price appreciation over time. This could lead to significant growth in the value of Elephant Money's treasury, providing a sustainable source of wealth generation for the ecosystem.

  3. Elephant Treasury Support: A fixed 1% APR on the TRUNK Turbine is used to buy back ELEPHANT tokens and send them to the ELEPHANT Treasury (the payor of last resort for all debt in the Elephant Money ecosystem).

  4. Risk Mitigation: The TRUNK Turbine, along with the BTC Turbine, was introduced as part of the "twin turbine" system in Futures v10. This strategic move aims to enhance the ecosystem's resilience by diversifying its asset base and reducing reliance on a single source of yield generation.

In essence, the TRUNK Turbine serves as a critical component of Elephant Money's treasury management strategy, enabling asset diversification, value appreciation, yield generation and risk mitigation.

Last updated