Minting
Minting cbEGGS
Mechanism
Minting: You can create new cbEGGS by depositing ETH into the protocol's smart contract.
Fee: There is a 1% 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 1% 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.
Minting Example
Step 1: The Starting Point
Imagine there are already 100 cbEGGS tokens in existence.
The contract is holding 100 ETH to back these tokens.
This means the price of each cbEGGS is 1 ETH (100 ETH ÷ 100 cbEGGS).
Step 2: The Minting Fee
To create the next cbEGGS token, you need to pay a 1% fee on top of the 1 ETH price.
So you pay 1.01 ETH in total.
Step 3: Where the Fee Goes
Out of that 0.01 ETH fee, 70% (0.007) is added to the protocol’s ETH backing.
The remaining 30% is split between:
The team (0.006)
Burn 10% (0.001) of the ETH fee is burned forever, removing it from circulation.
Step 4: The New Price
After you mint your cbEGGS, the contract now holds 101.007 ETH.
There are also 101 cbEGGS in existence.
The new price is 101.007 ETH ÷ 101 cbEGGS = 1.00006931 ETH per cbEGGS.
Notice how every cbEGGS becomes slightly more valuable!
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!
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