🧹The Custodian

Increasing $ZED farmers rewards

The Custodian system serves as a crucial protective measure designed to foster the protocol's expansion. Although inspired by the Original Tomb tax system, Project ZED fixed the issues prevalent at that time. The Custodian operates dynamically, its parameters adapting in response to shifts in the $ZED peg relative to $USDC. This feature ensures that as the $ZED peg fluctuates, so too does the corresponding tax rate. This mechanism has been strategically put in place to assist in maintaining the price of the token closer to its peg, providing a stabilizing force within the ecosystem.

Furthermore, it's worth highlighting that the Custodian Tax system will be specifically applied to SWAPS, safeguarding this integral aspect of the protocol's functionality. It is crucial to note that the tax rate can fluctuate between 0%-5% depending on the PEG health. This is vital to maintain in order to ensure that we can squeeze the price to benefit farmers and holders further.

For a comprehensive understanding of how the Custodian system operates to aid and protect $ZED, refer to the accompanying graph and table provided below. These visual aids offer a clear comprehension of how we aim to use the Custodian system to entice new and old investors to continue farming, further illustrating the adaptability and effectiveness of this protective mechanism.

The above diagram has been made solely for the purposes laid out by the TCF team, otherwise known as The Chain Farmers.