Floating Rate Emission

Bunny on Polygon also implements a mechanism for a floating rate emission (FRE).The initial FRE is 36% — 30% Performance Fee, 6% polyBUNNY mint.

When the relative price of polyBUNNY goes below 1/500 of ETH (or an otherwise optimal threshold), the system will adjust to do the following:

1. The system uses the 30% Performance Fee to buy polyBUNNY at the market price.

2. An amount of polyBUNNY equal to 6% of the Claim is minted and sent to the user

On the other hand, when the polyBUNNY/ETH Ratio is over the above optimal ETH threshold, initiated claims will perform as originally designed, with the Performance Fee going to the polyBUNNY Pool and the newly minted polyBUNNY delivered to the user.