Tokens

SKULL is designed to be used as a decentralized stablecoin for things such as exchange, lending, borrowing etc.

The protocol's algorithm aims to maintain SKULL 's peg of 1:1 SKULL:TOMB in the long run.

Note that SKULL actively pegs via an algorithm, it does not mean it will be valued at 1 SKULL: 1 TOMB at all times as it is not collateralized. SKULL is not to be confused for a crypto or fiat-backed stablecoin.

GRAIL is one of the ways to measure the value of the SKULL Protocol and trust in its ability to maintain SKULL close to peg. During epoch expansions the protocol mints SKULL and distributes it proportionally to all GRAIL holders who have staked their tokens in the Boardroom.

GRAIL holders have DAO voting rights on proposals to improve the protocol and future use cases within the Crypt Finance ecosystem.

GRAIL has a maximum total supply of 50,001 tokens distributed as follows:

1. DAO Allocation: 4500 GRAIL vested linearly 200 days

2. Team Allocation: 4500 GRAIL vested linearly over 200 days

3. Rewards: 41000 GRAIL are allocated for incentivizing Liquidity Providers in two shares pools for the next 200 days

4. Initial mint: 1 GRAIL minted upon contract creation for initial pool

CRYPT's main job is to help incentivise changes in SKULL supply during an epoch contraction period. When the TWAP (Time Weighted Average Price) of SKULL falls below 1:1 TOMB, CRYPTs are issued and can be bought with SKULL at the current price. Exchanging SKULL for CRYPTs burns SKULL tokens, taking them out of circulation (deflation) and helping to get the price back up to peg.

These CRYPTs can be redeemed for SKULL 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 SKULL when it is above peg, helping to push it back toward 1 SKULL to 1 TOMB ratio. Contrary to early algorithmic protocols, CRYPTs do not have expiration dates. If your SKULL is below peg exchange it for CRYPT and redeem after peg is above 1.1 to receive bonus SKULL! All holders are able to redeem their CRYPT for SKULL tokens as long as the Treasury has a positive SKULL balance, which typically happens when the protocol is in epoch expansion periods.