FAQ

For all your pressing questions!

Please note that none of this is financial advice. You should do your due diligence to become an informed investor by doing your own research, coming to your own conclusions, and taking note of the risks and responsibilities associated with participating in Comet Finance.

The team is available in the Discord to answer questions, so please reach out if they're not answered here!

Why Comet Finance?

Why have a token that’s pegged to the price of $FTM when you could just use $FTM itself instead?

Good question. But before we dive into what $COMET could mean for you as an investor, let’s break down the potential impact of $COMET’s long-term success on the Fantom ecosystem as a whole.

For Fantom to continue running as the fast, secure, and cost-effective blockchain we all know and love, its validator nodes will continue to rely on its $FTM token remaining staked and locked up.

Getting Started

1.“Generally speaking, what's the easiest flow to follow for compounding rewards?”

The following is NOT FINANCIAL ADVICE. It is for education and entertainment purposes only.

There are countless strategies, and which one you choose depends on your risk tolerance and short, medium, and long-term goals. That being said, the "plug-and-play" method is detailed below. Also, take some profits along the way. Don't get too greedy.

If $COMET is OVER the peg:

-Buy $COMET and pair it with $FTM to provide liquidity, and stake your COMET-FTM LP in the farm to earn $METEOR rewards. -Take your $METEOR rewards and stake them in the Boardroom to earn inflationary $COMET rewards. -Sell half of your earned $COMET for $FTM, and compound it back into the COMET-FTM LP. -Profit!

If $COMET is UNDER the peg:

1.Buy $COMET and exchange it for $CBond. If you are LP'ing, you can break the LP to exchange $COMET for $CBond, and use the remaining $FTM to buy $COMET to also exchange for $CBond. Now you have a big fat bag of $CBond, and you've also helped bring $COMET back above peg so that the Boardroom can resume printing.

2.Sell $CBond for a redemption bonus once $COMET is back over peg (above 1.1 TWAP).

3.Profit.

2. "What is 50/50?"

50/50 is the method best suited to provide stability for both the platform and for your underlying investment. By boosting liquidity, the 50/50 strategy reduces price volatility, and helps $COMET stay above the peg for longer to keep the Boardroom printing. This, in turn, attracts new investors and keeps the ecosystem growing. 1)When you claim your $COMET rewards in the Boardroom, sell 50% of them for $FTM. 2)When you go to provide COMET-FTM LP, stake the entirety of your remaining COMET with the $FTM you've just purchased.

3.“There are so many auto-compounding vaults, what should I do?”

If you are in a $COMET-FTM LP auto-compounding vault, you are creating buy pressure on $COMET. If you are in a $METEOR-FTM LP auto-compounding vault and you also hold $METEOR elsewhere, the auto-compounding vault will be suppressing its price since it is continuously selling $METEOR.

(Please Note: Always proceed with caution. We DO NOT recommend putting more than 5% of what you are staking on $COMET into a single auto compounder. Defi involves significant risks and users should manage risks accordingly. For example, users should only put in what they are willing to lose. DO NOT invest your life savings and do your homework before getting active in Defi.)

Terms and Mechanisms

1. "What is an expansionary epoch?"

An expansionary epoch is the amount of $COMET that is printed by $METEOR in order to increase the total circulating supply.

To simplify the explanation with a hypothetical example, let’s say an epoch is 3 days long and there are $100 dollars in the circulating supply.

If the money printer grows the supply by 10% of the existing circulating supply each day, at the end of the 3 days you'd have 100*1.1*1.1*1.1 = $133.

Then, let’s say the emissions decrease to 5% per day.

You’d then have $133 *1.05 *1.05 *1.05 = $153 at the end of this second epoch.

2. “What is compounding in the context of 2omb?”

Earning a return on gains you've already made from previous periods is what is commonly referred to as compounding.

For example, consider a 3% daily APR on an initial investment of $100.

After 24 hours it would grow to $103.

After 365 days without compounding: $1195.

After 365 days, compounding once daily: $4,848,272.

MILKYWAY (Boardroom)

1.“Once CBonds are emitted, does the MILKYWAY stop printing $COMET until we are above peg again?”

Staking $METEOR will give you $COMET rewards when the price of $COMET is above the peg (FTM), but not when it is under the peg.

2. “What happens if I interact with the MILKYWAY in any way?”

Any interaction with the boardroom will reset both timers. That's 1 epoch (6 hours) to withdraw your COMET rewards, and 2 epochs to unstake your 2share (12 hours).

3. “Are the MILKYWAY rewards pro-rated by time? I.e if I stake three hours before the end of an epoch vs five hours before the end of an epoch, do I get different rewards?”

No, it's determined by how much you have staked at the time of printing (i.e. end of one epoch and start of the other). It doesn't matter if you stake 3 hours before or 30 seconds before the emissions occur.

4. "If I remove my $METEOR from MILKYWAY without first collecting my $COMET, will it be lost forever?"

No, it will still be there to collect whenever you need.

5. "The MILKYWAY APR dropped because we're in a 'debt phase.' What does this mean?"

A debt phase takes place on the expansion epochs that start after a contraction period where there are still $CBond to be redeemed.

65% of Expansion during Debt Phase is allocated to the Treasury Fund to prepare for the CBond Redemption. This amount is still reserved whether or not CBond holders are redeeming bonds or not.

Once COMET in treasury is sufficiently full to meet all circulating bond redemption, expansion rates will resume to normal.

6. "If we're in a debt phase, how long will it last until MILKYWAY continues printing as normal?"

The debt phase will last as long as is necessary to adequately pay back outstanding $CBond debt. Please keep in mind that the DAO will also need to collect a little extra, as there needs to be a cushion to cover the bonuses when people redeem $CBond over peg. There's no exact way of calculating how many epochs it takes since we don't know exactly when people will redeem their $CBond. If the debt phase is ended too early, and then the treasury doesn't have enough $CBond to repay the $CBond bonus, then the APR restriction would need to be turned back on.

7. "At the end of the epoch, the Boardroom did not print $COMET, and then no $CBonds(s) were issued in the farm. Why?"

There is a balanced state "at peg" when $COMET's TWAP is between 1.00 and 1.01, and this means there is neither contraction nor inflation.

8. "If COMET continues climbing above the price of the peg, will that influence how long the debt epoch lasts?"

Depending on the price of COMET, the Boardroom print will have to adjust to provide a buffer for any unclaimed CBond. As the price of COMET climbs above the peg, more COMET needs to be distributed to the treasury to account for COMET bonus redemption.