The big picture about the protocol
The protocol's underlying mechanism dynamically adjusts $FUDGE's supply, pushing its price up or down relative to the price of $DAI.
Inspired by the original idea behind Tomb Finance as well as its predecessors (bDollar and soup), Sundae Finance is a multi-token protocol that consists of the following three tokens:
- Fudge ($FUDGE).
- Strawberry Shares ($STRAW)
- Caramel Bonds ($CARAML).
Unlike other protocols, Sundae Finance is a V2 seigniorage platform working together with our sister protocol Ice-cream Finance, $FUDGE is pegged to a stable coin — it is pegged to $DAI (Dai.e) on the Avalanche Network. Why is this? We believe in the potential of the Avalanche Network and have chosen to align its mission to both provide value to and benefit from Avalanche's future growth. We hope to create a stable protocol that can work side-by-side with Ice-cream Finance to create a healthy investment environment. As a result, our pegged token $FUDGE can benefit from the stability of the $DAI token and help grow our two protocols harmoniously
One of the primary shortcomings of past algorithmic tokens has been a lack of use cases, leaving no good reason for somebody to want to use or hold them. In order to successfully maintain the peg in the long-run, we plan to maintain a focus on innovation by rolling out the implementation of arbitrage bots, utility based NFT's, taxes that go directly towards our protocol, lottery systems, as well as a unique DAO bonding system & yield optimization to buy back and burn $FUDGE, and $CREAM from V1 protocol.