Minting

Minting cbEGGS

Mechanism

Minting: You can create new cbEGGS by depositing ETH into the protocol's smart contract.
Fee: There is a 2.5% fee when minting cbEGGS. This fee goes straight into the protocol, which increases the ETH backing for every cbEGGS.
Supply Cap: Once 1,000,000,000,000 cbEGGS are minted, no more can ever be made. After that point, cbEGGS becomes truly deflationary with each transaction.

Redeeming cbEGGS

Direct Sell: The easiest way to get your ETH back is to “sell” cbEGGS to the contract in the ‘swap’ tab of the dApp. You’ll pay the same 2.5% fee as minting, and the leftover goes to the protocol, LP incentives, and the team at the same rates as minting.
Loan Redemption: Alternatively, you can redeem cbEGGS by taking a loan against your position and instantly defaulting. This sends your ETH back to you, minus the collateral premium and interest.

Step 1: The Starting Point

Step 2: The Minting Fee

To create the next cbEGGS token, you need to pay a 2.5% fee on top of the 1 ETH price.
So you pay 1.025 ETH in total.

Step 3: Where the Fee Goes

Out of that 0.025 ETH fee, 70% (or 0.0175 ETH) is added to the protocol’s ETH backing.
The remaining 30% (0.0075 ETH) is split between:
- Liquidity provider incentives
- The team
- And remember, 10% of the ETH fee is burned forever, removing it from circulation.

Step 4: The New Price

Step 5: The Takeaway

Each time someone mints / sell new cbEGGS, part of the fee increases the ETH backing.
This naturally pushes up the price of every cbEGGS token.
It’s a simple but powerful way for cbEGGS holders to see their tokens grow in value over time!

Last updated 17 days ago