> For the complete documentation index, see [llms.txt](https://comet-finance88.gitbook.io/comet/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://comet-finance88.gitbook.io/comet/protocol-overview.md). # Protocol Overview ## WHAT IS COMET FINANCE? The $COMET token serves as an algorithmic stablecoin pegged to the price of 1 FTM.\ \ The protocol's underlying mechanism dynamically adjusts $COMET's supply, pushing its price up or down relative to the price of FTM. This project was built by people who were rugged and wanted a better system in place to be profitable. ## **OUR MOTIVATION FOR CREATING COMET FINANCE** As with all successful projects, we tend to see a huge number of projects forking the base project. The case in point, Tomb has seen a huge number of aspiring projects forking its codebase in an attempt to mimic its success. In the case of Tomb, Tomb aims to solve Fantom Opera's liquidity issues by creating a mirrored, liquid asset that can be moved around and traded without restrictions, all while benefiting from the price appreciation of the native $FTM token. Tomb's project is a purposeful one, where the ultimate goal of the project is - to become the primary utility token of the Fantom ecosystem ## What issue does COMET solves? For us at Comet Finance, creating a fork for the sake of it to mimic success is not our goal. We wish to build a sustainable decentralized reserve currency with the purpose of locking in liquidity for our protocol. Recently, Tomb has repeatedly went under peg despite its bonding mechanism in place. This creates uncertainty over investors - when will it go above peg again? At Comet Finance, we aim to create Protocol Owned Liquidity (POL) regulating the price of $COMET, keeping it **always** above bond. Sound familiar? Yes! An amalgamation between Tomb and OlympusDAO. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://comet-finance88.gitbook.io/comet/protocol-overview.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.