Turtle Rebase


What is Rebase Mechanism?

The Rebase mechanism allows a token to have an elastic supply. Meaning, the total supply adjusts itself up or down every rebase. Rebases may take place every epoch (every 6 hours).
Here is a simple explanation: Token XYZ has a target price of $1, if XYZ price is above $1, new XYZ tokens are released which will result in the circulating supply going up, forcing XYZ price to $1. By contrast, when XYZ price is below 1$, the platform will remove a portion of XYZ from the circulating supply and force XYZ price to 1$. This change is supply takes place everywhere: in a users' wallets, farms, pools, etc. This universal control over supply helps make it easier to maintain peg and protect the ecosystem.
The important point is that after a rebase, users own relatively the same percentage of the entire network. That means everyone still owns the same percentage of all the tokens in existence after each rebase.

Implementation in Space Rebase

Since many Tomb-forks fail to get back to peg, the protocol will implement the rebase Mechanism. This will help the protocol protect peg and keep the whole system running for the long term. This was prior implemented in SpaceShipx and we are inspired from it. Though spaceshipX failed to run successfully for various reasons, rebase mechanism is something we inspired from them which supports the peg.

Rebase Condition

The rebase will happen on the next epoch if peg token ($TURT) TWAP is below 1.00 of for two consecutive epochs. Rebases can happen every epoch as long as TWAP is under 1.00 after meeting the condition above.

Post Rebase

After every rebase, peg tokens in circulating supply will be reduced, including in users' wallets, liquidity pool, etc.
The reduction of peg tokens in the liquidity pool will result in the increase of peg tokens price
For Example :
  • Before the rebase: There are 1000 $TURT tokens to be claimed from the BeachHouse(boardroom) that are valued at $0.8 =>$TURT is below peg => Total value of tokens is $800.
  • After the rebase: 200 $TURT tokens have been burned => There are 800 $TURT tokens in the boardroom however the value of each $TURT is now => 1$ =>Meaning the value of your tokens are the same before and after the rebase!