The rebase mechanism was the tools of Charge DeFi to bring the price of $Static back up towards peg before releasing products. Rebase reduced a % of the $Static in circulation. This lowered the amount of $Static in your wallet, but simultaneously increased the price of $Static by the same factor. The BUSD value of your $Static and $Static-BUSD LP before and after rebase is the same.
Rebase will also affect your Static-BUSD LP. The $ value will decrease but not the token amount. Rewards are based on the token amount.
Let's say you buy $1000 of $Static @ $1.25 = 800 $Static $Static TWAP goes from $1.25 to $.75, your $Static is now worth $600 Rebase is triggered at the next epoch, $Static price goes back to peg Your $600 worth results in 600 $Static @ 1.00 When your 600 $Static goes from $1.00 to $1.25, it's now worth $750
No, the % of $Static burned in a rebase and the subsequent price increase are based on the TWAP. The formula for the new price is:New Price = Old Price / TWAPLet's say the TWAP of $Static is $0.90 just before the rebase, but the actual price of $Static is $0.89, then the new price of $Static after rebase will be $0.989 ($0.89/$0.90).So if the actual price of $Static is lower than TWAP before rebase, the new price of $Static after rebase will be < $1.00. If the actual price of $Static is higher than TWAP before rebase, the new price of $Static after rebase will be > $1.00.
The rebase mechanism is triggered at an epoch when either: 1. The $Static TWAP (Time Weighted Average Price) is at or below $0.80 at an epoch, -or- 2. $Static TWAP has been below $1.00 for 12 consecutive epochs (8 hours between epochs)
Yes. Once the conditions are met to trigger a rebase, a rebase will occur each and every epoch afterwards until the $Static TWAP is at or above $1.00 (peg) at an epoch. Once we reach peg, it takes 12 more epochs to trigger the next rebase. If $Static TWAP is at or below $0.80 at an epoch, a rebase will always take place (no matter how many epochs the TWAP is above or below peg). This can happen multiple times in a row if the TWAP is at or below $0.80 at the next epoch.
No. The rebase only affects $Static and Static-BUSD LP tokens. The rebase does not impact $Charge, Charge-BUSD LP, xStatic, fStatic, unclaimed $Static rewards in the Boardroom, or the $Static staked in the xStatic (membership) pool.
The rebase does not affect the unclaimed $Static rewards in the Boardroom or the $Static staked in the xStatic (membership) pool. This is the only exception. It will affect all the other $Static and $Static-BUSD LPs in wallets, pools, and farms.