To incentivize healthy liquidity pools for the CZpegs protocol tokens, our LP farms have been seeded with CZshares to be distributed as rewards to LP stakers across a time period of 24 months. The total CZshares rewards are distributed from each farm as follows:

  • CZbomb / BOMB LP: 125 allocation points of CZshares rewards

  • CZbnb / BNB LP: 100 allocation points of CZshares rewards

  • CZemp / EMP LP: 75 allocation points of CZshares rewards

  • CZbusd / BUSD LP: 100 allocation points of

  • CZshares / BNB LP: 400 allocation points of CZshares rewards

1. What will happen when the circulating supply equals the total supply? Will reward emissions stop?

Yes. Once the max supply of CZshares (73.1K) is reached, reward emissions end. This will happen in exactly two years from when the CZshares farms start on May 25th 2022 2pm EST. CZshares will always continue to print CZbomb/CZbnb/CZemp/CZbusd in the Boardroom, though, as long as CZbomb/CZbnb/CZemp/CZbusd remains above peg.

CZshares reward emissions for the current LP farms are scheduled to end on May 25th 2024 once the total CZshares supply has been distributed.

2. Why is "at-peg" (TWAP between 1.00 and 1.001) the best time to provide liquidity?

When CZbomb/CZbnb/CZemp/CZbusd is pegged or close to being pegged, it is more akin to having exposure to a single asset (single staking) than to your traditional LP'ing experience, where you would run the risk of impermanent loss if one of the tokens went up in value and the other did not.

3. Wait, you mean that if EMP/BOMB/BNB pumps, CZbomb/CZbnb/CZemp pumps with it?

Yes! Let's look at an example: If BOMB pumps in price, it won't "outrun" CZbomb, even if nobody is buying czBOMB at that time. The farm APRs will vary in terms of USD value, but the emissions won’t. This is something that wouldn't be possible with another 1:1 pegged asset like a stablecoin LP position, where the USD value is directly tied to the emissions. If BOMB rises in USD value, CZbomb goes with it. Similarly, if BOMB falls in USD value, CZbomb will be worth less in USD, but it won’t affect the peg.

The only thing that can change the price of CZbomb in terms of its BOMB value (and as such, the peg) is buying and selling it.

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