SAUNAFINANCE will launch Stable Token, called Boiler.
The Boiler Token is an algorithmic Stable coin issued by SAUNA FINANCE, backed by BUSD: “80%” + SAUNA: “the number of SAUNA bought for 20% at Mint”.
The Boiler is 80% backed by BUSD, which is fully backed by the dollar. The remaining 20% is backed by SAUNA. For example, if you try to get 10.0boiler, the boiler’s Minting engine will ask for 10.0BUSD. From that 10.0BUSD, you keep 8.0BUSD in the Boiler contract, purchase 2.0BUSD worth of SAUNA on Pancakeswap, and keep the purchased SAUNA in the Boiler contract.
When you redeem, the 20% value is backed by the “number of SAUNA purchased for 20% at the time of Mint” stored in the Boiler contract. The sauna you receive when redeeming is determined by the percentage of Boiler you redeem.
E.g. if the total number of boilers issued is 100 boilers, and you redeem 10 boilers, you will receive 10% of the “number of SAUNA bought for 20% at Mint” stored.
The Pancakeswap also has a Boiler-BUSD pair of L P’s and assumes a 1:1 price.
*The mechanism to maintain this price is assumed to be maintained by an arbitrage mechanism for investors.
E.g. if 1 Boiler is higher than 1 BUSD, investors will earn money by MINTing 1 Boiler at 1 BUSD and exchanging the Boiler for BUSD at Pancakeswap. If the 1BUSD is higher than the 1Boiler, you can buy the boiler on Pancakeswap and redeem it for a total profit. The natural order of things is to create arbitrage opportunities for each other to maintain a stable price.
So what are the benefits for investors of LP the Boiler-BUSD pair?
The advantage for investors is that they can get SAUNA as EARN in LP pairs between Stable Tokens with little or no in-permanent loss.
20% SAUNA is bought for every boiler MINT, which helps to increase the price, but it is discharged as EARN in LP farming.
Every time a boiler is MINTed, 20% SAUNA is bought, which helps to raise the price, but in LP farming, SAUNA is discharged as EARN. We hope that this interaction of buying and selling pressures will add depth and stability to the market price.
In addition, Pancakeswap will provide liquidity in Boiler/SAUNA pairs, enabling trading of Stable Token and SAUNA, which has not been available on Pancakeswap.
Boiler’s Cake-LP Token Betting Farming Pool to Get SAUNA
1）Boiler／BUSD LPLöyly Farming
Stake：Boiler — SAUNA Cake LP
Total Reword Token：1100k (SAUNA)
Bonus End Time：1460days
2）Boiler／SAUNA LPLöyly Farming
Stake：Boiler — SAUNA Cake LP
Total Reword Token：950k (SAUNA)
Bonus End Time：365days
What are your intentions for the boiler and stable coin LPs?Was it created with the intention of being less susceptible to bitcoin price fluctuations, for example, or was it created to not cause IL?
Investors needed to earn a stable income without causing IL. It is also a mechanism to improve the price of SAUNA.
I believe boiler tokens work similarly to iron tokens, but can you briefly explain any differences? I’m very worried that the price of $Sauna will crash.
Iron.v1 titans were always cast as Earn rewards. Also, Iron.v1 requires titans at the time of issue; SAUNA does not require them at the time of boiler issue, but purchases them from the market at the time of boiler casting. Also, there is an upper limit on the Earn of SAUNA, which can be found below.
Is there any disadvantages that people can get after using boiler feature? What is sauny finance strategy to introduce this feature to end user?
boiler is a mechanism designed to allow investors to invest in the farming pool while eliminating their concerns about lL. We have created a system that allows liquidity mining with highly stable token pairs, so it can be said that design eliminates disadvantages to utmost limit.
Our financial strategy does not include the operation of SAUNA and 80% BUSD stored at the time of mint, which means that the value of Boiler is guaranteed by SAUNA and 80% BUSD. As you can see from the boiler’s contract, we can’t withdraw any of the assets.
Earn sauna by boiler, but how does this affect the value of the sauna?
Getting SAUNA is also a reason to mint the boiler; when the boiler is minted, SAUNA is bought from the market.
The image shows that 20% sauna and 80% BUSD makes the boiler worth $1. Doesn’t this change the percentage if the price of sauna increases? And in that case, what system do you use to keep the boiler price at 1$?
0.8BUSD is always secured against 1Boiler. The rest is given as a percentage of the Boiler to be redeemed against the quantity of SAUNA stored in the contract at the time of MINT.
What is the approximate rate of return you are aiming for with boiler furming?
This will be announced at launch, but I would like to set the price higher than the general stable token pair, while taking into account the supply balance of SAUNA, of course.
Boilrer/BUSD LP earn sauna is why sauna is stabilized. sauna earn only and what profit exchanging Boilrer to BUSD has.
This serves as proof that the Boiler is a stable token. pancakeswap fees do not enter into SAUNAFINANCE. If there is a discrepancy in the price of Boiler-BUSD, it is an opportunity for arbitrage trading.
It is understandable that the price of SAUNA will be higher by making Boiler by Minting SAUNA and BUSD. Can we keep the balance if SAUNA’s selling pressure increases? How can I maintain Boiler = BUSD?
You don’t need SAUNA to mint the boiler.
All you need is BUSD.
For example, if 1Boiler is higher than 1BUSD, you will earn money by MINTing 1boiler with 1BUSD and converting the boiler to BUSD with Pancakeswap.
If the 1BUSD is higher than the 1Boiler, you can buy the boiler on Pancakeswap and redeem it for a total profit. The natural order of things is to create arbitrage opportunities for each other to maintain a stable price.
I didn’t understand your example on how much SAUNA we will receive when redeeming Boiler. You said we will receive 80% in BUSD and 20% in SAUNA stored in the contract, but SAUNA depends on % of Boiler we want to redeem, so it is not 20%?
If we can sell Boiler in PancakeSwap, is it possible for us to buy Boiler in PancakeSwap?
For example, let’s say you want to MINT 1 Boiler. At that time, $0.2 worth of SAUNA will be automatically purchased and stored in the contract. The price of SAUNA inside the contract will fluctuate daily, but the amount will not change.
The amount of SAUNA you receive when you redeem is determined by the percentage of Boiler you redeem. For example, if the total number of Boiler issued is 100 boiler and you redeem 10 boiler, you will receive 10% of the SAUNA stored.
In other words, the amount of SAUNA stored in the contract depends on the price at the time the Boiler is MINTed.
Will the boiler boil and exceed $ 1?
$boiler is a stabled token, so it costs $1. Maybe it will be more than $1 when redeem due to the price of SAUNA. That is the interesting part of this system.
— Sauna Finance Team