The team at MM Finance have announced they are going to be making some changes, including more utility for the $SVN token, such as enabling the $SVN token to be used on the launchpad and more. They also spent a moment easing concerns regarding investors worried about $SVN losing its peg. Their post can be found below.
Hi Burrow, we hear you. Our devs constantly scour the chats for any nascent concerns on the ground, and recently, we notice a constant nagging worry from all of you: What is going to happen to Savanna Finance if $SVN goes below peg? Currently, our team feels there’s no real need to be concerned about whether if $SVN is going to go below peg.
We are generally pleased with the way $SVN has been gradually approaching peg, and this has actually allowed the DAO to accumulate quite a number of $MMF tokens to protect the peg as a last ditch measure. Our DAO currently has close to $16,000,000 USD in MMF and this number has been increasing everyday since SVN.Finance was launched.
But before we go there, let us share some of our plans to ensure that $SVN constantly stays above the 1:1 peg to ensure that Savanna Finance continues to function as it currently has.
Before we talk about our plans, let us first address the number 1 issue everyone is talking about: Why is $SVN token rapidly heading towards peg? It is a bittersweet moment for our team when we start seeing queries like this. On one hand, we love all the enthusiasm and belief that holders of $SVN has. But at the same time, most users fail to understand the flow of funds within our ecosystem, and start having altercations with other community members over price action. We wish to take this opportunity to explain why price action of $SVN has been lacklustre (only over the course of < 1 week). It is important for $SVN holders to realise that $MMF token is still the main launchpad token.
We generally see launchpad commitments close to $30mil USD in $MMF tokens, and this generally explains why $SVN (and $MSHARE) tends to have weak price action leading up to launchpad. Most users simply need $MMF tokens for the launchpad, and hence sell ahead of the launchpad. Launchpads generally provide a strong platform for the average $MMF investor to make over a 200% return within that one event, and hence it is only sensible for them to participate in launchpads. This is why funds generally rotate ahead of such events, and weaker $SVN and $MSHARE tokens are to be expected. Many investors are able to capitalise on such price movements to dollar cost average into $SVN and $MSHARE during launchpad, and expect to see huge funds rotate back into $SVN and $MSHARE after launchpad events.
Now that said, this fund rotation phenomenon will soon cease to exist, because our team will be making key adjustments to our ecosystem. Read on below.
Usage of $SVN token as a launchpad token
This has been a long awaited feature of the $SVN token. Our team has been processing the data related to flow of funds within the ecosystem, and today, we are excited to announce the impending use of $SVN token as a launchpad token. The reason why it is feasible to use $SVN token as a launchpad token now is largely because capital and liquidity has been locked in places which most need it.
More utilities for the $SVN token
As it stands, the $SVN token already has utility in the $METF ecosystem where $SVN token can already be used to purchase bonds. However, more critically, other projects have been attracted by the deep liquidity of the $SVN token, ~$80mil USD, and are interested in building on top of our $SVN token. We are in discussion with a few projects, and you can expect to see launchpads that will soon provide further utility for the $SVN token.
What is going to happen to $MMF?
Most users are going to start worrying about what will happen to the future of $MMF if it is no longer used as a launchpad token. As it currently stands, MM Finance is the biggest DEFI ecosystem on Cronos (possibly bigger than most others on other chains as well). The utility of the $MMF token has changed drastically from whence we started since December 2021. From being a token that can only be farmed to be dumped, to a token that now acts as the core liquidity token, locking in over $150 mil USD as tradeable liquidity for other tokens. Today, the $MMF token acts as the L1 token of our ecosystem. Much like how $CRO token is used to facilitate building of liquidity on the Cronos chain, the $MMF token acts as the L1 token within our ecosystem to build liquidity. All these tokenomics adjustments we have made will only serve to provide stronger utility for $MMF so as to allow deeper liquidity pools for all projects that wish to join our umbrella.
We wish to provide a new perspective to all investors of our ecosystem, and hopefully incite you to do further research — understand the flow of funds within the ecosystem. Because only when you do so will you be at peace with how each token tends to have certain price actions during certain events. That way, you can make more informed decisions when you choose to invest in certain tokens over others.
On a final note, the dev team is dedicated to ensuring that the $SVN token maintains a healthy peg above 1. This generally means we wish to target a range of 1.1–1.2 to account for volatile events, so as to prevent an underpeg scenario. Also, this does not account for the $MBOND token which will exist to secure the peg when $SVN does go into an underpeg scenario. Of course we are confident that this scenario will be very unlikely to happen, ensuring that $MBOND need not be utilised.
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