Peg Nobility Vault (PNV)
What is it? How does it work?
Last updated
What is it? How does it work?
Last updated
This is the most integral piece of the Medieval protocol. Peg Nobility Vault represents a Fee Monetization for $SHIELD to have real backing in $scUSD compared to similar models. A claim fee has been introduced (PAID IN $S) on the Camelot farms and is dynamic. This allows capital to flow into the PNV wallet, which in turn enables us to support $SHIELD peg on a much more stable level backed by $scUSD funneled back into the protocol. This fund will strictly be used for peg stability and backing. The goal is to have 100% backing 1:1 with $scUSD.
Users claiming $KNIGHT rewards in the Camelot farms will pay a fee (PNV claim fee) in $S, the fee will be immediately converted to $scUSD. At launch, the PNV fee will be 20% and will be dynamically adjusted according to market conditions. For example, a user has $100 in $KNIGHT to claim. To be able to claim, user will need to pay $20 (in $S) to claim their $100 in $KNIGHT.
This fee reinforces peg stability and long-term ecosystem balance and sustainability. As the protocol grows and expands, and according to market conditions, the PNV fee will be dynamically changed. The goal is to completely remove this fee.
