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description: Peg Stability Module (PSM) | Dynamic Nest Emissions | LP Rehypothecation
---

# Overview

Snake Finance is not your regular Tomb model, we have unique features that don't rely on seignorage alone and have unique features to bring real revenue flowing into our treasury

<figure><img src="https://438227621-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F6NLoEeKDsFx1ENKBnxGx%2Fuploads%2F7wAPEjy8szs9Zng45e5Q%2Fimage.png?alt=media&#x26;token=a5a1c904-65cb-46f1-a7ad-64d91b06d8ef" alt=""><figcaption><p>Short Summuary</p></figcaption></figure>

<figure><img src="https://438227621-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F6NLoEeKDsFx1ENKBnxGx%2Fuploads%2FFf9xkR8pQEQ8jXV3Jzfq%2Fimage.png?alt=media&#x26;token=ba35f699-758b-40b8-9945-df4eb9a2adf8" alt=""><figcaption><p>Infographic Flow Chart</p></figcaption></figure>

### [How the Peg Stability Module (PSM) Works](#how-the-peg-stability-module-psm-works) 📊

∙ Users claiming [$gSNAKE](https://x.com/search?q=%24gSNAKE\&src=cashtag_click) rewards will harvest forest farms in [$S](https://x.com/search?q=%24S\&src=cashtag_click) (Currently 15% of the value of $gSNAKE)\
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∙ This fee reinforces peg stability and long-term ecosystem balance. This structure will evolve as the protocol grows.&#x20;

{% hint style="info" %}
**Note: Once liquidity gauges for** [**$SNAKE**](https://x.com/search?q=%24SNAKE\&src=cashtag_click)**-$S and** [**$gSNAKE**](https://x.com/search?q=%24gSNAKE\&src=cashtag_click)**-$S pairs are introduced, the PSM may be adjusted or removed entirely.**
{% endhint %}

<figure><img src="https://438227621-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F6NLoEeKDsFx1ENKBnxGx%2Fuploads%2Fi0oEiqBTwXmEGlaXpXzW%2Fimage.png?alt=media&#x26;token=f4f6d8ce-2d75-4acb-ae1b-21f0389d664e" alt=""><figcaption><p>PSM inforgraphic</p></figcaption></figure>

### [Dynamic Nest Emissions ](#dynamic-nest-emissions)🖨

These dynamic expansions of $SNAKE emitted from the nest ensure that emissions are flexible and adaptable to $gSNAKE. This ensures that $SNAKE emissions from the Nest each epoch are backed by the treasury, strengthening the peg with S.\


{% hint style="info" %}
**NOTE:** [**$SNAKE**](https://x.com/search?q=%24SNAKE\&src=cashtag_click) **rewards not claimed in the boardroom after 48 hours are BURNED as shown below This mechanism not only rewards $gSNAKE stakers & holders, but also helps stabilize the ecosystem by controlling the supply of** [**$SNAKE**](https://x.com/search?q=%24SNAKE\&src=cashtag_click) **& keeping** [**$gSNAKE**](https://x.com/search?q=%24gSNAKE\&src=cashtag_click) **locked**
{% endhint %}

<figure><img src="https://438227621-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F6NLoEeKDsFx1ENKBnxGx%2Fuploads%2FF03kj03XsbbmQEcHoFY7%2Fimage.png?alt=media&#x26;token=8d9c49a9-b0b1-4c0c-9d22-5994677bdc34" alt=""><figcaption></figcaption></figure>

### [LP Assets Rehypothecation](#lp-assets-rehypothecation) 💵

Users can maximize yields by staking user-provided LP tokens in Shadow's farms through the treasury. \
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∙ Users earn [$gSNAKE](https://x.com/search?q=%24gSNAKE\&src=cashtag_click) rewards while the protocol stakes the same LP tokens to earn in $xSHADOW \
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Example: Consider how Convex was a layer 2 & token optimizer for Curve Finance.



<figure><img src="https://438227621-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F6NLoEeKDsFx1ENKBnxGx%2Fuploads%2F9Du8KnRvl7K14kHlC0YN%2Fimage.png?alt=media&#x26;token=35dc5525-3690-489f-a55c-337096ee28e6" alt=""><figcaption></figcaption></figure>
