MOOB DOCUMENTATION
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FAQ

Why do we need Moob DAO in the first place?

We’ve all noticed that people are comfortable and confident with holding and transacting using Dollar-Pegged Stablecoins. It's believed that they hold the same amount of purchasing power today vs. yesterday and even tomorrow. This is simply false. Governments of the world create money, as the US government creates the U.S. Dollar which is managed by the Federal reserve. As a result, when depreciation occurs these Dollar Pegged Stablecoins will also depreciate.
Creating a free-floating reserve currency that is transparent in its operation is the aim of MoobDAO. The Moob Token will be backed by a variety of assets held in the Moob Treasury. The idea is to concentrate on supply growth instead of price appreciation, as a result we can maintain purchasing power in a volatile marketplace.

Is Moob a stable coin?

Moob is not a stable coin. Moob aims to become an algorithmic reserve currency backed by a variety of assets. These assets that are held in the Moob Treasury which allows Moob token users to have a free-floating value to rely on. Fractional treasury reserves also allows Moob to assume an intrinsic value.

Moob is backed, not pegged.

Each Moob Token is backed by 1 (one) BUSD , not pegged to it. Because the treasury backs every Moob with at least 1 BUSD, the protocol can reclaim or buy back and burn Moob when it trades below 1 BUSD. This has the effect of pushing Moob price back up to 1 BUSD. Moob could always trade above 1 BUSD because there is no upper limit imposed by the protocol. Think pegged = 1, while backed >= 1.
You might say that the Moob floor price or intrinsic value is 1 BUSD. We believe that the actual price will always be 1 BUSD + premium, but in the end that is up to the market to decide.

How does it work?

At a high level, MoobDAO consists of its protocol managed treasury, protocol owned liquidity (POL), bond mechanism, and staking rewards that are designed to control supply expansion.
Bond sales create profit for the protocol, and the treasury utilizes the profit to mint Moob and distribute them to stakers. As a result of liquidity bonds, the protocol is able to accumulate its own liquidity. Check out the entry below on the importance of POL.

What is the deal with (3,3) and (1,1)?

(3,3) is the idea that, if everyone cooperated in MoobDAO, it would generate the greatest gain for everyone (from a game theory standpoint). There are three actions a user can take:
• Staking (+2)
• Bonding (+1)
• Selling (-2)
Staking and bonding are beneficial to the protocol, while selling is detrimental. Staking and selling will also cause price fluctuation, while bonding does not (buying MOOB from the market is a prerequisite of staking, thus causing a price move). If both actions are beneficial, the actor who moves price also gets half of the benefit (+1). If both actions are contradictory, the bad actor who moves price gets half of the benefit (+1), while the good actor who moves price gets half of the downside (-1). If both actions are detrimental, which means both actors are selling, they both get half of the downside (-1).
Thus, given two actors, all scenarios of what they could do and the effect on the protocol are shown here:
• If we both stake (3, 3), it is the best thing for both of us and the protocol (3 + 3 = 6).
• If one of us stakes and the other one bonds, it is also great because staking takes Moob off the market and put it into the protocol, while bonding provides liquidity and BUSD for the treasury (3 + 1 = 4).
• When one of us sells, it diminishes effort of the other one who stakes or bonds (1 - 1 = 0).
• When we both sell, it causes the worst outcome for both of us and the protocol (-3 - 3 = -6).

Why is PCV important?

Protocol Controlled Value(PCV), is the amount of funds the treasury controls and owns. The more PCV the better for the protocol and its users. As the protocol controls the funds in its treasury, Moob tokens can only be minted or burned by the protocol. This also guarantees that the protocol can always back 1 Moob with 1 BUSD. You can easily define the risk of your investment because you can be confident that the protocol will indefinitely buy Moob below 1 BUSD with the treasury assets until no one is left to sell. You can trust the code, you can't trust the FED .
As the protocol accumulates more PCV, more runway is guaranteed for the stakers. This means the stakers can be confident that the current staking APY can be sustained for a longer term because more funds are in the treasury.

Why is POL important?

Moob owns most of its liquidity because of it's bond system. This has numerous benefits:
• Moob guarantees the market that the liquidity is always there to facilitate
• Moob does not pay out high farming rewards to incentivize liquidity
providers a.k.a renting liquidity.
• As a result of being the largest LP (liquidity provider), it earns a majority of the LP fees which
represents another source of income to the treasury.
• All POL can be used to back Moob . The LP tokens can be marked down to their risk-free
value for this purpose.

What will happen if there is a bank run on Moob?

Fractional reserve banking works because depositors don’t withdraw their funds all at once. A depositor’s faith in the banking system rests on regulations and agencies like Federal Deposit Insurance Corporation (FDIC).
Moob does not have FDIC insurance but it has an incentive structure that protects stakers. Let’s take a look at how it performs during a hypothetical bank run. In this scenario, we assume the majority of stakers would panic and unstake their tokens from Moob - the staking percentage which stands at 92% now quickly collapses to 3.3%, leaving only 55,000 Moob staked.
Next, we assume the Risk-Free Value (RFV) inflows to the treasury completely evaporate. For context, RFV in this example is growing at about $1 million every 2 days. However, during a bank run this growth will stop. Our final assumption is that those last standing stakers bought in at a price of$500 per Moob. The initial investment of these stakers would be:

Do I have to unstake and stake MOOB on every epoch to get my rebase rewards?

No. Once you have staked MOOB with MOOBDAO , your staked MOOB balance will auto-compound on every epoch. That increase in balance represents your rebase rewards.

How do I track my rebase rewards?

You can track your rebase rewards by calculating the increase in your staked Moob balance.
1. Record down the Current Index value on the staking page when you first stake your Moob. Let's call this the Start Index.
2. After staking for some time, if you want to determine by how much your balance has increased, check the Current Index value again. Let's call this the End Index.
3. By dividing the End Index by Start Index, you would get the ratio by which your staked Moob balance has increased.
$ratio = endIndex / startIndex$
4. In this example, the MOOB balance has grown by 1.5 times.
Ratio = 13.2 / 8.8
= 1.5

Is Moob Registered with the SEC?

Moob LLC and Moob DAO are exempt as it relates to the SEC. The reason for this is we are operating under regulation “D” 504 of the securities act of 1933 . In simple terms this allows Moob to advertise and sell tokens in a STO (security token offer) . The limitation is that we are only allowed to sell to accredited investors in the USA. We are also exempt as a result of Regulation “S”. Regulation “S'' allows us to sell to any investor whether accredited or not that is not a U.S. citizen. In our opinion, we are not selling a security, as classified by the SEC. We have, in any case, chosen to secure ourselves and allow for investor confidence by only selling to accredited investors. “Is the business registered with the SEC?” The answer is NO. However, we will be filing a Form “D” which is a required notification to the SEC when operating under regulation “D” and “S” of the securities act. Please Note that this is only related to Moob DAO's Private Sale.