Introducing CarrotCake

Inspired by the most successful Algorithmic stablecoin on Binance Smart Chain: bDollar (We are a HUGE fan). CarrotCake is a multi-token protocol that consists of three tokens: cCAKE (the algorithmic token pegged to CAKE), CarrotCake Shares sCAKE which holders can claim cCAKE inflation when the network expands), and CarrotCake Bonds bCAKE, which can be purchased when the network is in contraction and can be redeemed for cCAKE when the network comes to its deflationary phase and price goes below CAKE.

CarrotCake Protocol is an experimental project and the first algorithmic token pegged to CAKE that enables the generation of cCAKE tokens that run on the Binance Smart Chain.

The protocol is designed to expand and contract the supply of cCAKE tokens similar to the way central banks trade fiscal debt to stabilize purchasing power, without any rebates or collateral risk.

Below is the explanation of how CarrotCake mechanisms works

cCAKE trades below the CAKE’s Current Market Price

When the cCAKE price is below CAKE’s Current Market Price, token holders can purchase CarrotCake Bonds (bCAKE) and Bonds will be burnt to reduce the circulating supply when users redeem cCAKE tokens with a 1:1 ratio.

In case of redemption, an amount of cCAKE will be minted with premium with the CarrotCake Bonds (bCAKE) that have been redeemed. Important to note is that Bonds have no expiry after purchase.

cCAKE trades above the CAKE’s Current Market Price

When cCAKE price is CAKE’s Current Market Price peg, the token supply will have to expand to push it back down to CAKE’s Current Market Price and the contract will allow the redemption of the CarrotCake Bonds (bCAKE).

When the price of cCAKE continues trading above the CAKE Current Market Price peg after bond redemption, the contract mints an appropriate amount of new cCAKE and this will be distributed to the CarrotCake’s Oven Stakers.

cCAKE (CarrotCake) distribution

• Initial supply: 155,000 cCAKE
• Distribution period: 185 days
• First 5 days: 10,000 cCAKE daily
• Next 30 days: 1,000 cCAKE daily
• Next 150 days: 500 cCAKE daily
• Block countdown: https://bscscan.com/block/6128000

Reward rate for Bank pools (Bakery) from Day 1

• CAKE: 2x
• BDO: 1x
• bBDO: 1x
• sBDO: 1x
• CAKE-LP BDO/bBDO: 1x
• BUSD: 1x

Since Day 2

Cake-LP cCAKE/CAKE: 70x

sCAKE (CarrotCake Share) distribution

sCAKE has a maximum total supply of 10,000 tokens

• 1,500 sCAKE are allocated to DAO Fund
• 500 sCAKE are allocated to the team
• Both are vested linearly over 12 months

The remaining 8,000 sCAKE are allocated for incentivizing Liquidity Providers, as follows:

Since Day 3:

• Cake-LP cCAKE/BNB (6x)
• Cake-LP cCAKE/BDO (3x)

Since Day 4

• Cake-LP sCAKE/BNB (3x)

CarrotCake Unique Algorithm:

• Oven (Boardroom) Epoch duration: 8 hours during expansion and 6 hours during the contraction — the protocol reacts faster to stabilize cCAKE price to peg as compared to other protocols with longer epoch durations
• Epoch Expansion: Initially capped at 6% if there are bonds to be redeemed, 4% if the treasury is sufficiently full to meet bond redemption bCAKE tokens do not expire and this greatly reduces the risk for bond buyers. Cap will be reduced as the supply of cCAKE increases
• Price feed oracle for TWAP is based on the average of 2 liquidity pool pairs (i.e. cCAKE/BNB and cCAKE/BDO) which makes it more difficult to manipulate
• The protocol keeps 70% of the expanded cCAKE supply for sCAKE Boardroom stakers for each epoch expansion, 30% toward DAO Fund.
• During the debt phase, 50% of minted cCAKE will be sent to the treasury for bCAKE holders to participate in bond redemption. 35% for Boardroom stakers and 15% to DAO Fund
• No discount for bond purchase, but the premium bonus for bond redemptions if users were to wait for cCAKE to increase even more than the 1 CAKE peg

Participate in cCAKE farming

To participate in the protocol, visit the Bakery Menu dashboard, and select your preferred pool:

Participate in the Boardroom

Boardroom opens 7 days after the launch: 06/04/2021 00:00 UTC and the first seigniorage will happen 8 hours after that.

Conclusion

CarrotCake Protocol is the experimental product running on the Binance Smart Chain ecosystem as we are strong supporters of algorithmic tokens in particular and DeFi in general. However, CarrotCake is an experiment, and participants should take great caution and learn more about the seigniorage concept and supply expansion and contraction mechanism to avoid any potential loss.

Community channels

Website: https://carrotcake.fi/

Telegram: https://t.me/CarrotCake_Official

Medium: https://carrotcake-protocol.medium.com/

Twitter: https://twitter.com/CarrotCake_Now