The 2|3omb protocol is one that isn’t immediately easy to grasp. So let us put it as simply as possible. Please be patient with us. If you already know these bits, simply skip this section.
What if you could invest in a golden goose? Something you can acquire that will actually print you more money to either invest or use?
Technical Definition: 2|3omb is an Algorithmic Stablecoin Protocol pegged 1 is to 1 FTM. The protocol's underlying mechanism dynamically adjusts $2OMB's supply, pushing its price up or down relative to the price of FTM.
To be able to explain this as simply as possible, think of the $2SHARE token as the Golden Goose. Given the right conditions, it will lay golden eggs.
In the same way, the $2SHARE tokens staked (which means deposited for a period of time) will print a certain amount of $2OMB for you as a reward every epoch —which is six hours as long as the TWAP or the peg, which we’ve referred to previously, is 1.01 $FTM and above.
Why is 2omb pegged to Fantom? What’s the deal?
Going back to Fantom. The way it’s designed, the network runs smoother (meaning transactions are fast, secure, and hiccup-free) when more FTM tokens are deposited and locked or staked as they call it. But that also creates a liquidity issue for the FTM token — meaning it lessens the amount of FTM that’s available. That is why protocols such as this one are created to give an alternative token that is pegged to the price of Fantom. It helps solve the liquidity problem, keeps the network running smoothly, and everybody benefits.
This is what algorithmic stablecoins seek to solve.