FAQ
CAT is backed, not pegged.
Each CAT is backed by 1 MIM, not pegged to it. Because the treasury backs every CAT with at least 1 MIM, the protocol would buy back and burn CAT when it trades below 1 MIM. This has the effect of pushing CAT price back up to 1 MIM. CAT could always trade above 1 MIM because there is no upper limit imposed by the protocol. Think pegged == 1, while backed >= 1.
You might say that the CAT floor price or intrinsic value is 1 MIM. We believe that the actual price will always be 1 MIM + premium, but in the end that is up to the market to decide.
Is CAT a stablecoin?
No, CAT is not a stablecoin. Rather, CAT aspires to become an algorithmic reserve currency backed by other decentralized assets. Similar to the idea of the gold standard, CAT provides free-floating value its users can always fall back on, simply because of the fractional treasury reserves CAT draws its intrinsic value from.
What is Magic Internet Money (MIM)?
Magic Internet Money (MIM) is a stablecoin backed by interest bearing tokens issued by abracadabra.money!
MIM is native of the Ethereum Ecosystem and bridged to Avalanche! The place with the highest liquidity to buy MIM on Avalanche Network is on Trader Joe using the AVAX-MIM Pair!
The MIM address on Avalanche is 0x130966628846BFd36ff31a822705796e8cb8C18D. Find out more about MIM here.
Is CAT Audited?
CleopatraDAO is currently unaudited! It is a fork of Wonderland on the avalanche Network, audits will occur at a later stage. Stay cautious!
How do I track my rebase rewards?
You can track your rebase rewards by calculating the increase in your staked CAT balance.
1. Record down the Current Index value on the staking page when you first stake your CAT. Let's call this the Start Index.
2. After staking for some time, if you want to determine by how much your balance has increased, check the Current Index value again. Let's call this the End Index.
3. By dividing the End Index by Start Index, you would get the ratio by which your staked CAT balance has increased.
What is the deal with (3,3) and (1,1)?
(3,3) is the idea that, if everyone cooperated in Cleopatra-dao, it would generate the greatest gain for everyone (from a game theory standpoint). Currently, there are three actions a user can take:
Staking (+2)
Bonding (+1)
Selling (-2)
Staking and bonding are considered beneficial to the protocol, while selling is considered detrimental. Staking and selling will also cause a price move, while bonding does not (we consider buying CAT from the market as a prerequisite of staking, thus causing a price move). If both actions are beneficial, the actor who moves price also gets half of the benefit (+1). If both actions are contradictory, the bad actor who moves price gets half of the benefit (+1), while the good actor who moves price gets half of the downside (-1). If both actions are detrimental, which implies both actors are selling, they both get half of the downside (-1).Thus, given two actors, all scenarios of what they could do and the effect on the protocol are shown here:
If we both stake (3, 3), it is the best thing for both of us and the protocol (3 + 3 = 6).
If one of us stakes and the other one bonds, it is also great because staking takes CAT off the market and put it into the protocol, while bonding provides liquidity and MIM for the treasury (3 + 1 = 4).
When one of us sells, it diminishes effort of the other one who stakes or bonds (1 - 1 = 0).
When we both sell, it creates the worst outcome for both of us and the protocol (-3 - 3 = -6).
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