# 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.\ \ 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. \ \ 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. \ \ 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 $xSHADOW\ \ **Nest rewards will continue** as long as **$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.