# General FAQs

### **1. What does Dynamic Nest Expansion (DNE) mean?** <a href="#id-1.-what-does-dynamic-nest-expansion-dne-mean" id="id-1.-what-does-dynamic-nest-expansion-dne-mean"></a>

We operate within a dynamic system in which expansion depends on several factors, including the TWAP of $FANG, revenue generated by Fang Finance, the price of $gFANG, the amount of $gFANG staked in the Nest & more.

During an expansionary epoch, **staked $gFANG tokens mints new $FANG** if the price of **$FANG** is above its target peg - 1.01 ETH, expanding supply to bring it back to equilibrium.

### **2.** Understanding Fang Finance's Peg Stability Module (PSM)? <a href="#id-2.-understanding-crocodile-finances-peg-stability-module-psm" id="id-2.-understanding-crocodile-finances-peg-stability-module-psm"></a>

1. What is PSM? Peg Stability Module (PSM) is a fee mechanism that strengthens $**FANG**'s peg to $ETH by creating a direct link between $gFANG rewards and stable asset backing.
2. How it Works (Simple Example):

* User wants to claim 1 $gFANG (worth 1000 $ETH)
* PSM requires a fee payment of 350$ worth of $ETH ( 35% of it's worth ).&#x20;

Process:

* User pays 350 $USDC worth of $ETH
* Treasury receives the $ETH. This $ETH is used to buy $FANGif under backing or $ETH, when ETH's trading above backing.
* User receives their 1 $gFANG, worth 1000 $ETH

#### Why it matters?

&#x20;• Creates real backing for $FANG using $ETH\
&#x20;• Builds treasury reserves organically \
&#x20;• Strengthens the peg through actual asset backing \
&#x20;• Reduces reliance on emissions alone

#### Key Difference from Traditional Models:

Traditional: Rely solely on market forces

Fang's PSM: Active fee capture → Real stable backing → Stronger peg

### **3.** Are the Nest rewards pro-rated by time? <a href="#id-3.-are-the-nest-rewards-pro-rated-by-time" id="id-3.-are-the-nest-rewards-pro-rated-by-time"></a>

No. Nest rewards depend solely on the **amount of staked $gFANG tokens** and not when they were staked during the epoch. Whether staked 3 hours or 30 seconds before epoch emissions, the rewards once epoch flips will be the same.

### **4.** What happens if $FANG continues climbing above the price of the peg? <a href="#id-4.-what-happens-if-usdcroc-continues-climbing-above-the-price-of-the-peg" id="id-4.-what-happens-if-usdcroc-continues-climbing-above-the-price-of-the-peg"></a>

If the price of **$FANG** remains high, the Cocoon has a dynamic expansion rate in which the higher the peg, more revenue can be distributed expanding supply further while maintaining the desired 100% backing.

### **5. Why can't I claim on The Nest?** <a href="#id-5.-why-cant-i-claim-on-the-nest" id="id-5.-why-cant-i-claim-on-the-nest"></a>

Depositing $gFANG or claiming $FANG rewards onto the Cocoon triggers lock resets:

* gFANG withdraw locked for **4 epochs**
* FANG harvest locked for **2 epochs**

{% hint style="warning" %}
Unclaimed rewards after **8 epochs** of no interactions with The Nest are used to buyback $gFANG, only once the user interacts with the Nest again.
{% endhint %}

### **6. Why did my rewards not get claimed in the Nest?** <a href="#id-6.-why-do-my-rewards-burn-in-the-nest" id="id-6.-why-do-my-rewards-burn-in-the-nest"></a>

We've also added a new mechanism in which rewards not claimed after 8 epochs are used to buy $gFANG, to increase engagement & attachment with the protocol as well as $gFANG price action improvements, which benefits everyone inside Fang Finance.

### **7. What will happen when Fang shares (Protocol Power token) circulating supply = Total supply? Will emissions stop?** <a href="#id-7.-what-will-happen-when-shares-circulating-supply-total-supply-will-emissions-stop" id="id-7.-what-will-happen-when-shares-circulating-supply-total-supply-will-emissions-stop"></a>

Yes. Once the maximum supply of $gFANG is reached, emissions stop. However, Fang Finance's vision is to become a platform that boosts rewards for users on SuperNova, in turn, users who deposit to earn $gFANG will have the underlying LP deposited into the gauge on SuperNova generating revenue for the treasury via NOVA, or other, rewards.

Cocoon rewards will continue as long as $FANG remains above the intended 1.01 peg.

### **8. What is an epoch?** <a href="#id-8.-what-is-an-epoch" id="id-8.-what-is-an-epoch"></a>

An epoch in the **Fang Finance** ecosystem is a **6-hour period** in which the total supply of **$FANG** is potentially adjusted. The token price and revenue are constantly monitored to determine if, or how much of a **supply expansion** is needed.