Price Mechanics

If LSD is a stablecoin, is it always worth $1?

No. The goal, at maturity, is to see the stablecoin stay very close to $1. However, it is expected in the early days of the project, it will be more volatile. Some volatility is natural -- the whole design of the protocol is to adjust the money supply when the price diverges -- consequently, it is not a surprise that it would diverge. However, over time it is expected for the volatility to subside and LSD to maintain its peg against the desired asset.

How LSD's supply grow in relation to token holders?

LSD uses a seigniorage model to grow the money supply. This means, if the market demands more LSD (more buyers than sellers of LSD), more of the coin (LSD) will be minted to meet that demand and bring the price back down to $1. That extra minted money supply is distributed to the current holders of LSD (who have taken steps to lock their holdings to the protocol, as detailed below.) Keep in mind, if the reverse happens -- demand goes down -- the protocol has to reduce the supply of LSD, having an opposite effect.

What is a Cycle?

The length of time between adjustment to the money supply. Every Cycle, currently 8 hours, the protocol assesses whether the money supply ought to grow or shrink, and then issues rewards or debt to make that happen. As an investor, at the end of every cycle you receive rewards if it expands.

Should I advance a Cycle? What does this mean?

Cycles happen every eight hours. For technical reasons, someone needs to manually trigger the start of a new epoch.

Smart contract Address:

Why do some cycles grant rewards and some cycles do not?

If there is excess demand for LSD, then the price will trend above $1 on the Pancakeswap pool, and that signals the protocol to mint additional token supply. Conversely, if the demand shrinks, excess selling on Pancakeswap will push the price below $1, which triggers the protocol to generate debt and incentivise token holders to burn LSD to shrink the token supply.