Core mechanism

Summary

• Users can convert their veNFT into elCHR.
• elCHR can be staked to earn ETH.
• ielCHR is a dedicated compounder for elCHR.

Minting elCHR

Initially in the first week, each 1 CHR inside a veNFT will be able to mint out 1 elCHR (1:1 ratio).

Minting-price Ratio & Rebases

As the epochs go by the rewards from rebasing will be added to the main veNFT of elCHR protocol without minting any new elCHR. This will cause the minting ratio to shift from 1:1 to 1:(1+R), R being the rebase factor.

For example, if the rebase for 2nd epoch is 0.5%, then the mint ratio will increase to 1.005, which means it would take a veNFT with 1.005 CHR inside it to mint 1 elCHR token.

Due the fact that there are no negative rebases in veCHR system, this minting-price ratio of elCHR will keep on increasing forever, and it will keep on appreciating against plain CHR in a veNFT.

Usage of the veNFT

The main veNFT of the system will be simply used to maximize the returns from voting. Vote distribution will only consider the after-sale value (in ETH) of the earnable Bribes & Voter fees to decide its vote.

All the earnings from Voting such as Bribes & Trade-fee will be sold in their entireity to purchase ETH.

All 100% of the Votes will be used for this purpose and this purpose only. Even if we have a conflict of interests in the future, the votes will be allocated solely on the basis of maximum ETH returns per vote.

Usage of the ETH from Voting yield

• 13.37% of the ETH will be used to acquire Protocol-owned Liquidity.
• 86.63% of the ETH is used as follows:
  • 20% of ETH is distributed to Stakers
  • 80% of ETH is sent as Bribes to Chronos.exchange voters