Hand of God Phases

Genesis

During Genesis, Hand of God (HOG) will incentivize the deposit of popular Sonic ecosystem tokens by rewarding participants with emissions of our peg token, $HOG. This process will bootstrap liquidity for the HOG-OS pair, which will also receive additional incentives.

The Genesis pools will include a mix of LP and single-stake options, with a 1% deposit fee, except for the HOG-OS pair, which will have no fee.

During this phase, $gHOG and $bHOG will not be available for interaction.

Expansion

Expansion occurs when the peg token ($HOG) trades at least 1 basis point above its peg target, $OS (1.01 peg). During these phases, several key mechanics come into play:

• Sanctum Rewards 🏛️ (Equivalent to the Boardroom in Tomb Finance and its forks)

  • $HOG emissions will be distributed to users who have staked $GHOG, with emission rates dynamically adjusted by our AI-driven system.

• Debt Management 💰

  • Our AI may enable $bHOG redemptions and introduce redemption incentives to strategically reduce the protocol's debt overhead, maintaining financial stability.

• Liquidity Provider Incentives 🌊

  • Throughout expansion phases and all post-Genesis stages, the Elysium (our Farms page) will emit $gHOG to staked $HOG-$OS liquidity providers, with emission rates determined and frequently updated by our AI.

Contraction

Contraction occurs when the peg token ($HOG) falls below its peg target, OS. During these phases, the protocol implements measures to restore the peg and maintain ecosystem stability:

• Debt Reduction Mechanism 🏦

  • Our AI-driven system may enable $BHOG purchases using $HOG, effectively reducing $HOG supply and aiding in its return to peg.

• Emission Adjustments ⚖️

  • Sanctum (Boardroom Equivalent): No $HOG emissions will be distributed during contraction.

  • Elysium (Farms): $GHOG emissions will continue, though typically at a reduced rate, dynamically adjusted by our AI based on market conditions.

These mechanisms ensure that supply expansion is controlled, reducing excess $HOG in circulation and improving peg stability.

Equilibrium

The peg token ($HOG) is designed to maintain a loose peg to its target, allowing for natural market fluctuations. We consider a $HOG price between 0.9 and 1.1 OS to be within the desired range. During this phase, our AI dynamically adjusts its parameters to help maintain stability within this range.

• Equilibrium (1.0-1.01 OS)

  • The Sanctum does not print more HOG, but supply reduction measures are not taken.

• Mild Expansion (1.01 – 1.1 OS) 📈

  • The protocol is technically in expansion, but emission rates are likely to be moderated, ensuring sustainable growth.

• Mild Contraction (0.9 – 0.99 OS) 📉

  • The protocol is in contraction, but supply reduction measures will be applied at a reduced intensity to avoid unnecessary market shocks.

This equilibrium zone allows $HOG to remain flexible yet stable, minimizing extreme fluctuations while maintaining protocol efficiency.