⁉️General FAQs

1. What does Dynamic Nest Expansion (DNE) mean?

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)?

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 ).

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?

• Creates real backing for $FANG using $ETH • Builds treasury reserves organically • Strengthens the peg through actual asset backing • 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?

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?

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?

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

• gFANG withdraw locked for 4 epochs

• FANG harvest locked for 2 epochs

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.

6. Why did my rewards not get claimed in the Nest?

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?

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?

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.