⁉️General FAQs
Frequently Asked Questions & Answers
1. What does dynamic Nest Expansion (DNE) mean?
We function on a dynamic system in which the expansion depends on several factors such as the TWAP of $CROC, revenue generated by Crocodile Finance, price of $gCROC, amount of $gCROC staked in the boardroom & more.
During an expansionary epoch, staked $gCROC tokens mint new $CROC, increasing its circulating supply. If the price of $CROC is above its target peg - 1.01 AVAX -, the algorithm expands supply to bring it back to equilibrium.
2. Understanding Crocodile Finance's Peg Stability Module (PSM)?
What is PSM? Peg Stability Module (PSM) is a fee mechanism that strengthens $CROC's peg to $AVAX by creating a direct link between $gCROC rewards and stable asset backing.
How it Works (Simple Example):
User wants to claim 1 $gCROC (worth 1000 $AVAX)
PSM requires a fee payment of 350 $AVAX ( 35% of it's worth )
Process:
User pays 350 $AVAX
Treasury receives and holds the $AVAX
User receives their 1 $gCROC, worth 1000 $AVAX
Why it Matters: • Creates real backing for $CROC using $AVAX • Builds treasury reserves organically • Strengthens the peg through actual asset backing • Reduces reliance on emissions alone
Key Difference from Traditional Models:
Traditional: Rely solely on market forces
Crocodile's PSM: Active fee capture → Real stable backing → Stronger peg
3. Are the Nest rewards pro-rated by time?
No. Nest rewards depend solely on the amount of staked $gCROC tokens and not when they were staked during the epoch. Whether staked 3 hours or 30 seconds before epoch emissions, the reward remains the same.
4. What happens If $CROC continues climbing above the price of the peg ?
If the price of $CROC remains high, the Nest has a dynamic expansion rate in which the higher the peg, the larger the expansion rate, the lower the peg, the lower the expansion rate.
5. Why can't I claim on The Nest?
Depositing $gCROC or claiming $CROC rewards onto the Nest triggers lock resets:
gCROC withdraw locked for 4 epochs
CROC harvest locked for 2 epochs
Rewards Burn after 8 epochs of no interactions with The Nest
6. Why do my rewards burn in the Nest?
Crocodile Finance prioritizes long-term stability over short-term high yields. By being able to adjust expansion rates based on revenue, we encourage users to provide liquidity rather than just rely on single-token staking, which strengthens the protocol's sustainability.
We've also added a new mechanism in which rewards not claimed after 8 epochs are burned to increase engagement and attachment with the protocol.
7. What will happen when shares circulating supply = Total supply? Will emissions stop?
Yes. Once the maximum supply of $gCROC is reached, emissions stop. However, Crocodile Finance's vision is to become a platform that boosts rewards for users on Pharaoh Exchange &/or Blackhole, in turn, users who deposit to earn $gCROC will have the underlying LP deposited into the gauge for Pharaoh generating revenue for the treasury via Pharaoh or Blackhole rewards.
Nest rewards will continue as long as $CROC remains above the peg.
8. What is an epoch?
An epoch in the Crocodile Finance ecosystem is a 6-hour period in which the total supply of $CROC is adjusted. The token price is monitored to determine if a supply expansion or contraction is needed.
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