Phase 1 FAQ
Frequently Asked Questions about Phase 1 ad. all you need to know.
Last updated
Frequently Asked Questions about Phase 1 ad. all you need to know.
Last updated
Polaris Finance‘s Phase 1 was the fork of Tomb Finance on Aurora blockchain.
First of all, we loved the idea behind algorithmic tokens and we wanted to create stable, profitable and secure for Aurora blockchain to continue running as the fast, secure, and cost-effective blockchain we all know and love.
We created multiple algorithmic stable tokens pegged to other assets like $NEAR, $ETH, $BTC, $USDC and $BNB.
You need to add Aurora blockchain to Metamask and then bridge assets to Aurora blockchain. The guide is here.
You can swap your tokens on our Polaris Finance DEX swap page.
All available pools for Liquidity Providers are available on our Polaris Finance DEX Earn page.
The following is NOT FINANCIAL ADVICE. It is for education and entertainment purposes only.
There are countless strategies, and which one you choose depends on your risk tolerance and short, medium, and long-term goals. That being said, the "plug-and-play" method is detailed below. Also, take some profits along the way. Don't get too greedy.
If Pegged Asset is OVER the peg:
Buy one of our Pegged Assets and pair it with to provide liquidity, and stake your POLAR/NEAR LP in the Earn to earn $SPOLAR rewards.
Take your $SPOLAR rewards and stake them in the Sunrise to earn inflationary $POLAR rewards.
Sell half of your earned $POLAR for $NEAR, and compound it back into the POLAR/NEAR LP.
Profit!
Buy $POLAR and exchange it for $PBOND. If you are LP'ing, you can break the LP to exchange $POLAR for $PBOND and use the remaining $NEAR to buy $POLAR to also exchange for $PBOND. Now you helped bring $POLAR back above peg so that the Sunrise can resume printing.
Sell $PBOND for a redemption bonus once $POLAR is back over peg (above 1.1 TWAP).
Profit.
50/50 is the method best suited to provide stability for both the platform and for your underlying investment. By boosting liquidity, the 50/50 strategy reduces price volatility, and helps $POLAR stay above the peg for longer to keep the Sunrise printing. This, in turn, attracts new investors and keeps the ecosystem growing.
When you claim your $POLAR rewards in the Sunrise, sell 50% of them for $NEAR.
When you go to provide POLAR/NEAR LP, stake the entirety of your remaining $POLAR with the $NEAR you've just purchased.
Never put all your funds in one basket, even if it's $POLAR. Always take gains along the way. The Polaris team views it as a success if, over time, everyone gets their initial investment back into their wallets and continues investing with the profits that come after that.
An expansionary epoch is the amount of $POLAR that is printed by $SPOLAR in order to increase the total circulating supply.
To simplify the explanation with a hypothetical example, let’s say an epoch is 3 days long and there are $100 dollars in the circulating supply.
If the money printer grows the supply by 10% of the existing circulating supply each day, at the end of the 3 days you'd have 100*1.1*1.1*1.1 = $133.
Then, let’s say the emissions decrease to 5% per day.
You’d then have have $133 *1.05 *1.05 *1.05 = $153 at the end of this second epoch.
Earning a return on gains you've already made from previous periods is what is commonly referred to as compounding.
For example, consider a 3% daily APR on an initial investment of $100.
After 24 hours it would grow to $103.
After 365 days without compounding: $1195.
After 365 days, compounding once daily: $4,848,272.
The answer is yes. Let's take an example: If $NEAR pumps in price, it won't 'outrun' $POLAR. The APR will vary in terms of its USD value, but emissions won’t. If $NEAR rises in USD value, $POLAR goes with it. Same if $NEAR falls in USD value, $POLAR will be worth less in USD, but it won’t affect the peg. The only thing that can change the price of $POLAR in terms of its $NEAR value is buying and selling it.
Staking $SPOLAR's will give you $POLAR rewards when the price of $POLAR is above the peg (1 $NEAR), but not when it is under the peg.
Any interaction with the Sunrise will reset both timers. That's 3 epochs (18 hours) to withdraw your $POLAR rewards, and 6 epochs to unstake your $SPOLAR (36 hours).
No, it will still be there to collect whenever you need.
A debt phase takes place on the expansion epochs that start after a contraction period where there are still $PBOND to be redeemed.
65% of expansion during 'Debt Phase' is allocated to the Treasury Fund to prepare for the $PBOND redemption. This amount is still reserved whether or not $PBOND holders are redeeming bonds or not.
Once $POLAR in treasury is sufficiently full to meet all circulating bond redemption, expansion rates will resume to normal.
There is a balanced state "at peg" when $POLAR's TWAP is between 1.00 and 1.01, and this means there is neither contraction nor inflation.
Yes. Once the max supply of $SPOLAR (50k) is reached, emissions stop. This is going to be in a little less than a year. $SPOLAR will always print $POLAR in the Sunrise, though, as long as $POLAR is above peg.
When $POLAR is pegged or close to being pegged to 1 $NEAR, it is more akin to having exposure to a single asset (single staking) than to your traditional LP'ing experience, where you would run the risk of impermanent loss.
$PBOND will only become available in the Bond following epochs in which the Time Weighted Average Price (TWAP) of $POLAR is under peg. This means that $POLAR's price will have had to have been under 1 $NEAR for the majority of the previous epoch in order to trigger the Bond to "open".
The Bond will always open at the very beginning of a new epoch, and remain open for the entire epoch — the Bond can not and will never open mid-epoch — and during epochs in which the Bond is open, $POLAR will not be printed in the Sunrise.
To encourage redemption of $PBOND for $POLAR when $POLAR's TWAP > 1.1, and in order to incentivize users to redeem at a higher price, $PBOND redemption will be more profitable with a higher $POLAR TWAP value. The $PBOND to $POLAR ratio will be 1:R, where R can be calculated in the formula as shown below:
R = 1 + [(POLARtwapprice) - 1) * coeff)]
coeff = 0.7
To further illustrate why the longer you hold $PBOND the more profitable it is, let's take an initial $1000 investment into consideration. In this example, say this $1000 is used to buy $POLAR when $POLAR TWAP is 0.95 and then swapped for $PBOND.
$POLAR TWAP is 1.5, your investment would now be worth $1421
$POLAR TWAP is 2, your investment would now be worth $1789
$POLAR TWAP is 3, your investment would now be worth $2526
$POLAR TWAP is 5, your investment would now be worth $4000
There is a balanced state "at peg" when $POLAR's TWAP is between 1.00 and 1.01, and this means there is neither contraction nor inflation.
You can swap it back again when the following two criteria are met:
$POLAR TWAP is above peg
There is enough $POLAR in the treasury to cover it the redemption
