Peg Stability Fund

What is it? How does it work?

This is the most integral piece of the Reaper protocol. Peg Stability Fund represents a Fee Monetization for $REAP to have real backing in $scUSD compared to similar models. A claim fee has been introduced (PAID IN S) on the Scythe farms and is dynamic. This allows capital to flow into the Reaper PSF wallet, which in turn enables us to support $REAP peg on a much more stable level backed by $scUSD funneled back into the protocol. This fund will strictly be used for peg stability and backing. The goal is to have 100% backing 1:1 with $scUSD.

• Users claiming $sREAP rewards in the Scythe farms will pay a fee (PSF claim fee) in $S, the fee will be immediately converted to $SCUSD. At launch, the PSF fee will be 20% and will be dynamically adjusted according to market conditions. For example, a user has $100 in $sREAP to claim. To be able to claim, user will need to pay $20 (in $S) to claim their $100 in $sREAP.

• This fee reinforces peg stability and long-term ecosystem balance and sustainability. As the protocol grows and expands, and according to market conditions, the PSF fee will be dynamically changed. The goal is to completely remove this fee.