⚰️Introduction to Arbitomb

Introduction:

Arbitomb is an algorithmic protocol using seigniorage to maintain the peg to ARB. Arbitomb aims to be another option aside from centralized stablecoins for investors to store their wealth and gain exposure to ARB while awarding those who participate in the Arbitrum ecosystem. As always, never invest more than you are comfortable losing.

What is Arbitomb?

Arbitromb is a DeFi protocol on the Arbitrum network. Arbitomb’s token value is algorithmically pegged to the price of ARB via seigniorage at a rate of 1:1 ARB.

The protocol's underlying mechanisms are designed to accomplish the following:

•Ensure that a peg of Arbitomb: ARB is achieved.

•It is maintained to establish $ATomb as a mirrored, liquid asset to $ARB.

The protocol accomplishes this by introducing unique economic and game-theory-centric dynamics into the market through its three tokens and a seigniorage method.

How does it work?

The protocol is based on a series of complex interactions, with the behavior of multiple stakeholders deciding the pricing dynamics of the multiple tokens of the ecosystem.

When ATomb's price is above the peg, new ATomb is minted through the protocol to inflate the supply, in an attempt to drive the price down toward the peg. The new ATomb tokens are placed into circulation through the Crypt and distributed to ASHARE holders. This increases the demand for ASHARE, thus increasing the price and value of ASHARE tokens.

When ATomb price drops below the peg, the protocol will allow minting ABonds with ATomb (up to a maximum debt limit). This removes Atomb from the total supply, applying upward pressure on the price towards the peg. ABonds can then be redeemed for ATomb at a premium when the price is above peg in the future.

Why Arbitomb?

In the short term, until the peg is achieved, Arbitomb’s focus is on optimizing the protocol and creating value for holders through Farms and the Crypt.

Once the peg is achieved, the system’s mechanisms will focus on stability and consistency so that ATomb can function as a mirrored, liquid asset to ARB.

Ultimately, the purpose of the Arbitomb protocol is to provide exposure to ARB while simultaneously being exposed to a new protocol in the ecosystem.