Bae Finance
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Introduction
Welcome to Bae Finance! If this is your first time here, please take some time to read through this documentation before you begin using the protocol.

Origins

Bae Finance is based upon the work of the brilliant tomb.finance project on the Fantom network. This project would certainly not be possible without the work of the tomb.finance team. Their project being fully open source and developed exceptionally well made it a pleasure to work with, and we would not be here today without their efforts, so we want to give a special thank you to them for that.
Bae Finance is launching on 9th April. The rest is history!

How does it work?

Bae Finance protocol works through a synergistic design of unique tokens and mechanisms that create an automatic, self-reinforcing system to help maintain the peg (1 BAEP = 1 TOMB). Each of these tokens and mechanisms will be explained in further detail within this documentation, but for now let's have a look at a brief overview of how it all works:
  • When BAEP price is over the peg, new BAEP are minted by the protocol to inflate the supply in an attempt to drive the price down towards the peg. These new BAEP are allocated to BAE holders in the Boardroom, as a reward for their investment and trust in the protocol. This in turn increases the demand for and the value of BAE.
  • When BAEP price is at the peg , no new BAEP will be minted, keeping the supply fixed during this time. Since there will be no new supply coming in, the peg will be maintained indefinitely at this point unless there is a shift in demand. More buying pressure during this time will push the price back up above the BAEP minting threshold. Conversely, more selling pressure will push the price below the peg.
  • When BAEP price drops below the peg, the protocol will begin to mint BBONDs (up to a maximum debt limit). Experienced investors will have the ability to exchange their BAEP for these BBOND, which they can then redeem for BAEP at a premium above peg in the future. This removes BAEP from the total supply, applying upward pressure on the price towards the peg. Besides this, investors who believe in the protocol's ability to maintain peg can just buy BAEP to essentially purchase TOMB at a discount to the market. Both of these incentives are intended to create upward pressure on BAEP's price when under the peg so that the peg can be regained over time. BAEP staking (BAE), and other features of the protocol that will be discussed later, also help limit BAEP supply and apply upward pressure on the price during this time.
There are so many different ways you can utilize the staking mechanisms of Bae Finance protocol to earn yield. Pick a strategy that is right for you, based upon your own knowledge and experience. Even the most simple and basic of strategies can earn great returns, but feel free to experiment with more complex strategies as you learn how the protocol works!
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Outline
Origins
How does it work?