There is a token that all Tomb forks choose to peg to. Frozen Walrus pegs to USDC.e.
IF$WLRS is greater than the value of $USDC.e, the boardroom will inflate the supply of $WLRS.
This means that if you have $WSHARE in the boardroom during an epoch that the TWAP is over 1.01 you will receive $WLRS tokens.
The farms will always emit $WSHAREREGARDLESS of the price action of $WLRS & $USDC.e.
When the supply of $WLRS becomes too inflated, or the demand goes down and the price goes below the value of $USDC.e then the boardroom does not print that EPOCH.
The protocol is meant to have expansion and contraction phases to constantly move $WLRS closer to 1:1 with $USDC.e.
$WBOND's tokens become available if an EPOCH does not print(when TWAP of WLRS is below 1). There is a limited amount sold per EPOCH and the goal is you exchange your $WLRS for $WBOND thus reducing the supply temporarily causing the intrinsic value of each $WLRS to have a higher price impact making it easier to reach peg.
$WBOND can be redeemed after an epoch where TWAP is over 1.01. Please read our section on bonding to understand the risk/reward of bonding.
This push and pull of supply constantly adds and reduces volatility to $WLRS. Similar to a rubber band effect the supply expands and contracts to become less and less volatile and more and more inline with a 1:1 value of $USDC.e.
When investing in a tomb fork, a collective mindset in the community is needed as you will be moving your positions around to either support the peg by breaking your Liquidity Pool tokens and increase volatility (making it easier to reach peg) or adding to liquidity pools (decrease volatility).
Going Under Peg
Some seem to believe that going under peg is a bad thing, or that all hope is lost. It is a major point of contention in the tomb fork communities and can often lead to an early demise. It is important to understand these protocols are MEANT to go UNDER peg at some point. Once inflation becomes unsustainable there are measures in place to contract the supply and bring you back over peg to then start the cycle over.
There is money to be made on both sides of the peg and hopefully after reading this documentation you have a better understanding of how to do that!