# General FAQs
### **1. What does dynamic nest expansion (DNE) mean?**
Dynamic Nest Expansionary epochs are something new to Snake Finance. We function on a dynamic system in which the expansion is dynamic depending on several factors such as the TWAP of $SNAKE, price of $gSNAKE, amount of $gSNAKE staked in the boardroom & more.\
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During an expansionary epoch, **staked gSNAKE tokens mint new $SNAKE**, increasing its circulating supply. If the price of **$SNAKE** is above its target peg - 1.01 S -, the algorithm expands supply to bring it back to equilibrium. However
### **2.** Understanding Snake Finance's Peg Stability Module (PSM)**?**
1. What is PSM? Peg Stability Module (PSM) is a fee mechanism that strengthens $SNAKE's peg to $S by creating a direct link between $gSNAKE rewards and stable asset backing.
2. How it Works (Simple Example):
* User wants to claim 1 $gSNAKE (worth 1000 $S)
* PSM requires a fee payment of $300 in $S
Process:
* User pays 300 $S
* Treasury receives and holds the $S
* User receives their 1 $gSNAKE, worth 1000 $S
1. Why it Matters: • Creates real backing for $SNAKE using $S • Builds treasury reserves organically • Strengthens the peg through actual asset backing • Reduces reliance on emissions alone
2. Future Evolution: • PSM is a temporary mechanism • Will be adjusted/removed once:
* $SNAKE-$S gauge is live
* $gSNAKE-$S gauge is active
* Liquidity deepens sufficiently
3. Key Difference from Traditional Models: Traditional: Rely solely on market forces Snake's PSM: Active fee capture → Real stable backing → Stronger peg
### **3. Are the Boardroom rewards pro-rated by time?**
No. Boardroom rewards depend solely on the **amount of staked $gSNAKE tokens** and not when they were staked during the epoch. Whether staked 3 hours or 30 seconds before epoch emissions, the reward remains the same.
### **4. What happens If $SNAKE continues climbing above the price of the peg ?**
Yes. If the price of **$SNAKE** remains high, the Nest has a dynamic expansion rate in which the higher the peg, the larger the expansion rate, the lower the peg, the lower the expansion rate. \
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NOTE: A portion of $SNAKE allocate more **$SNAKE** to the Treasury.
### **5. Why can't I claim on The Nest?**
Depositing $gSNAKE or claiming $SNAKE rewards onto the Nest triggers lock resets: \
\- gSNAKE withdraw locked for 4 epochs \
\- SNAKE harvest locked for 2 epochs \
\- Rewards Burn timer reset to 48 hours
### **6. Why do my rewards burn in the Nest?**
Snake Finance prioritizes **long-term stability** over short-term high yields. By being able to **adjust expansion rates based on revenue**, we encourage users to **provide liquidity** rather than just rely on single-token staking, which strengthens the protocol's sustainability. \
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We've also added a new mechanism in which rewards not claimed after 48 hours are burned to increase engagement and attachment with the protocol.
### **7. What will happen when circulating supply = Total supply? Will emissions stop?**
Yes. Once the **maximum supply of $gSNAKE** is reached, emissions stop. However, Snake Finance's vision is to become a platform that boosts rewards for users on Shadow Exchange, in turn, users who deposit to earn $gSNAKE will have the underlying LP deposited into the gauge for Shadow generating fees for the treasury via $xSHADOW\
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**Nest rewards will continue** as long as **$SNAKE remains above the peg**. Plans include expanding **DAO funds** and enabling LP providers to earn **rewards in ve3,3 DEXes across the ecosystem**.
### **8. What is an epoch?**
An epoch in the **Snake Finance** ecosystem is a **6-hour period** in which the total supply of **$SNAKE** is adjusted. The token price is monitored to determine if a **supply expansion or contraction** is needed. Governance proposals can also be raised and voted on during this time.
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