Sun

Sun are unique tokens that can be utilised to help stabilise Earth price around peg (1 EVMOS) by reducing circulating supply of Earth if the TWAP (time-weighted-average-price) goes below peg (1 EVMOS).

Sun can be purchased only on contraction periods, ie: when TWAP of Earth is below 1. Sun can be found in the Bonds tab on the website.

Every new epoch on contraction periods, Sun are issued in the amount of 3% of current Earth circulating supply, with a max debt amount of 35%. This means that if bonds reach 35% of circulating supply of Earth, no more bonds will be issued.

Note: Sun TWAP is based on Earth price TWAP from the previous epoch as it ends. This mean that Earth TWAP is real-time and Sun TWAP is not.

You can buy Sun if any are available, anyone can buy as much Sun as they want as long as they have enough Earth to pay for them.

There is a limit amount (3% of Earth current circulating supply) of available Sun per epoch while on contraction periods, and are sold as first come first serve.

The first and most important reason for buying Sun is that they help maintain the peg but Sun are not the only measure used to keep the protocol on track, more on that on DAO Fund section.

Sun do not have an expiration date, so you can view them as an investment on the protocol, because longterm you get benefits from holding Sun and redeeming when the protocol has recovered.

The idea is to reward Sun buyers for helping the protocol, and also protecting the protocol from being manipulated from big players.

So after you buy Sun using Earth, you get 2 possible ways to get your Earth back:

1. Sell back your Sun for Earth while peg is between 1 - 1.1 (1 EVMOS) with no redemption bonus. This to prevent instant dump after peg is recovered

2. Sell back your Sun for Earth while peg is above 1.1 (EVMOS) with a bonus redemption rate

The longer you hold, the more both the protocol and you benefit from Sun .

1. When Earth = 0.8, burn 1 Earth to get 1 Sun (Sun price = 0.8)

2. When Earth = 1.15, redeem 1 Sun to get 1.105 Earth (Sun price = 1.27)

If I buy Earth at 0.8, and hold it until 1.15 and then sell, I'm getting +0.35$ per Earth

But, if I buy Earth at 0.8, burn it for Sun , and redeem it at 1.15, I'm getting 1.105 Earth * 1.15 (Earth MB current price) = 1,271 (+0.47$) per Sun redeemed.

Sun TWAP is based on Earth price TWAP from the previous epoch as it ends. This mean that Earth TWAP is real-time and Sun TWAP is not. In other words, you can redeem Sun for a bonus when the previous epoch's TWAP > 1.1.