HOTDOG Finance — an algorithmic BUSD-pegged stablecoin ecosystem, running on the BNB Chain network.
About HOTDOG Finance
The underlying mechanisms of the HOTDOG Finance protocol are designed to allow the HOG:BUSD anchor to be reached, and once it is reached, it is maintained to establish $HOG as a mirror liquid asset against $BUSD. The protocol achieves this by introducing unique economic and game-theoretic dynamics to the market with its three tokens.
When the price of HOG exceeds the peg, new PegTokens are minted to lower the price. These new PegTokens are being allocated to HSHARE holders, so issuing HSHARE makes the most logical sense during this period. When the price of HOG is at a fixed level, HOG holders can use LP HOG-BUSD to increase their returns. At this point, new HOGs will stop being minted and each investor's HSHARE will manage the voting rights to have a say in running the platform through the DAO.
When the price of HOG falls below the anchor, the investor's strategy should be to buy HBOND by using HOG. The PegToken, used to buy HBOND, will be burned, which will reduce the supply of PegToken and bring its price back to a peg, after which investors can sell HBOND for a profit.
The HOTDOG Finance protocol consists of the following three tokens:
| $HOG | Designed to be used as a medium of exchange. The stability mechanism, built into the protocol, aims to maintain the PegToken peg at 1 PegToken = 1 BUSD. |
| $ HSHARE | HSHARE token holders have both voting rights and ownership of the protocol. Once the DAO is established, they will play a critical role in the governance of HOTDOG Finance. |
| $HBOND | The main purpose of HBOND — to help incentivize and reward users for providing a binding during the shrinking epoch. |
In the short term, until the peg is reached, HOTDOG Finance will focus on optimizing the protocol and creating wealth for early investors through Farms and Boardroom.
Farms on the platform
Farms give investors an easy way to get $HSHARE, the HOTDOG Finance limited supply management token. They will continue to reward HSHARE until the maximum $HSHARE supply (59.5K) is reached, at which point emissions will stop. This will happen at the launch of $HSHARE farms, i.e. May 24, 2023, when emissions will stop and no new $HSHAREs will be created.