Tokens

$COMET- Comet Finance Token

$COMET token is designed to be used as a medium of exchange. The built-in stability mechanism in the protocol aims to maintain COMET's peg to 1 Fantom (FTM) token in the long run.

Note that COMET finance actively pegs via the algorithm, it does not mean it will be valued at 1 FTM all times as it is not collaterized . $COMET is not to be confused for a crypto or fiat-backed stablecoin.

$METEOR- Comet Finance Share Token

Comet Share (METEOR) are one of the ways to measure the value of the Comet Finance Protocol and shareholder trust in its ability to maintain $COMET close to peg. During epoch expansions the protocol mints $COMET and distributes it proportionally to all $METEOR holders who have staked their tokens in the milkyway (boardroom).

METEOR holders have voting rights (governance) on proposals to improve the protocol and future use cases within the Comet Finance ecosystem.

Meteor has a maximum total supply of 70000 tokens distributed as follows:

• Team Allocation: 4999 METEOR vested linearly over 3 months

• Initial mint: 1 METEOR minted upon contract creation for initial pool

• Remaining 65000 METEOR are allocated for incentivizing Liquidity Providers in two shares pools for 3 months

$CBond- Comet Finance Bonds

Comet Finance Bonds ($CBond) main job is to help incentivize changes in $COMET supply during an epoch contraction period. When the TWAP (Time Weighted Average Price) of $COMET falls below 1 FTM, $CBonds are issued and can be bought with $COMET at the current price. Exchanging $COMET for $CBonds burns $COMET tokens, taking them out of circulation (deflation) and helping to get the price back up to 1 FTM. These $CBonds can be redeemed for $COMET when the price is above peg in the future, plus an extra incentive for the longer they are held above peg. This amounts to inflation and sell pressure for $COMET when it is above peg, helping to push it back toward 1 FTM.

All holders are able to redeem their $CBond for $COMET tokens as long as the Treasury has a positive $CBond balance, which typically happens when the protocol is in epoch expansion periods.

Note that contrary to early algorithmic protocols, Cbonds do not have expiration dates.