What Is Loot Dollar(LOOTDOLLAR)? Coin Review? Guide About Loot Dollar

What Is Loot Dollar (LOOTDOLLAR)?

Loot Dollar is an algorithmic stablecoin model that attempts to bring extra liquidity and users to the underlying base asset, $CRO, that it is pegged to through a seigniorage model. The underlying “algorithm” or “mechanism” of the protocol either increases, or decreases the supply of the token with the aim of pegging to 1 $CRO. The protocol also uses other measures to achieve this as further explained in the DAO fund section of these documents.

Loot Dollar Coin will also explain further how users can earn yields or profits on both sides of this equation throughout the Gitbook. Most algorithmic stablecoins of this type were inspired by the Basis Cash model, among others, and more noticeably lately by the most successful iteration of this idea by Tomb Finance on Fantom. The protocol has 3 underlying tokens that present a range of uses for the users.

Important Points Table Of Loot Dollar

How to Buy the Continental & Trade On Exchange?

Loot Finance consists of three core assets:

1. 1. LOOTDOLLAR is the underlying peg token, that aims to be pegged to 1 CRO
2. 2.TREASURE is the share token. It represents the protocol’s overall value and can also be staked to earn LOOTDOLLAR when it is trading above 1 $CRO.
3. 3.GOLD is the bond token, in which users receive after burning their LOOTDOLLARS when it is trading under peg, and can be redeemed for a premium paid in LOOTDOLLARS later, when the price regains above 1 $CRO.

Tokens

The LOOTDOLLAR token is designed to be used as a means of exchange. The protocol’s algorithm/mechanics are heavily user focused in the context of game theory. It is designed to peg to 1 $CRO or as close as possible.

Treasure

TREASURE tokens are the “share” token of the protocol and are a governance token, as well as an obvious measure of user trust in the protocol to maintain LOOTDOLLAR above or close to peg. Holders can stake their TREASURE in the CABIN to receive LOOTDOLLAR rewards during expansionary epochs. These occur when the price is trading above a Time Weighted Average Price (TWAP) of over 1.01 $CRO. TREASURE has a maximum total supply of 70,000 tokens that are distributed as follows.

1. 1.DAO Allocation: 5,500 Treasure vested linearly over 6 months
2. 2.Development Allocation: 5,000 Treasure vested linearly over 6 months
3. 3.Remaining 59,500 Treasure are allocated for incentivizing Liquidity Pools in the LOOTDOLLAR-CRO and TREASURE-CRO pools, both running for six months.

Gold

GOLD tokens can be bought by exchanging LOOTDOLLAR for them on the DECK, when LOOTDOLLAR is trading at a TWAP below 1 $CRO at the end of the epoch. For example, if epoch 1 ends with a TWAP of below 1, bonds become available on the DECK in the following epoch.The LOOTDOLLAR is exchanged for the GOLD token at a 1:1 ratio and is burned upon this exchange happening. This reduces the supply and the bonds can be redeemed for a premium later when LOOTDOLLAR trades above 1 CRO. More on this in the bonds section of these documents.

Genesis Period

The Genesis period of the protocol encompasses the first 24 hours. To begin a protocol like this, one must distribute LOOTDOLLAR and also TREASURE to participants, so they can provide liquidity and users have adequate liquidity needed to purchase the tokens used on the platform. This can be done through a presale, airdrops or other methods such as Genesis Farming, which we are employing.

Genesis begins on May 11th, at 18:30 UTC.

For the first 24 hours, users can stake their LNC NFTs, CRO, or CRX and receive LOOTDOLLAR in return. At the end of the 24 hours users can unstake and go back to their regular lives holding the NFT, CRO or CRX. No catch! It is essentially an airdrop with one extra step for holders of the above 3 tokens.

For 10 days after the initial 24 hour period, a LOOTDOLLAR-CRO pool begins, earning LOOTDOLLAR. After the 10 days conclude, it will permanently close. At which point, the prime source of earning LOOTDOLLARS will be in the Cabin.

Upon reaching day 5, LOOTDOLLAR-CRO earning TREASURE launches. This pool runs for six months. The pool now earning TREASURE is what will set users up to be able to provide liquidity in the next pool.

On Day 7-10, TREASURE-CRO earning TREASURE launches and runs for six months. This is the last of the liquidity pools to launch in the initial period of the protocol.

How the Platform Works

The Cabin in Loot Finance is where TREASURE can be staked to receive inflationary LOOTDOLLAR rewards. The way the algorithm of the protocol works, is that when LOOTDOLLAR trades at an average of over 1.01 CRO during an Epoch (6 hours), the next epoch will emit inflationary rewards of LOOTDOLLAR to all TREASURE stakers in the Cabin.

This is inflation at its simplest, with the idea of increasing supply of LOOTDOLLAR in increments to bring it back down to peg. The opposite is what happens in the bonding part of the algorithm (GOLD Tokens). Essentially when the price is too high, the protocol inflates the supply, and when the price is too low, it contracts the supply. All of this is in a user focused way that requires participation of the user at different stages of the protocol’s price movements, and therefore education of users is essential.