🎯Examples

Here are some examples which illustrate the mechanism of Boomerang and it's Safety Net. We use USDT as an example purchase coin, but this can be anything supported by Sushi Swap.

📊 What happens when?

Here’s how it works, depending on the price change of BMR:

1. At a 50% Drop: If the price of Boomerang tokens falls by 50%, the Safety Net activates. This means if the value of your tokens goes down, the Safety Net is there to help reduce how much you could lose. With a press on a button you claim your Safety Nets. It sells your tokens for 50% of the original price and you receive 50% of your original purchase. In total you break-even and loses nothing.

2. At a 75% Drop: If the price continues to drop and reaches a 75% decrease, the Safety Net continues to be active, providing ongoing but smaller protection against the falling market. This continues until you press the claim button.

3. At a 25% Increase: If the price of Boomerang tokens rises and reaches 125% of the value at which you bought them, the Safety Net expires. This is because your investment is doing well and the extra protection isn’t needed anymore.

🚀 Bullish

• You purchase 100 USDT and receive 100 BMR. Your Safety Net has an expiration rate of 125 USDT.

• The price of BMR rises to 125 USDT. You make a profit of 25 USDT. Your Safety Net expires. The locked 50 USDT goes to the Bank.

• The Bank can use it reserves to purchase more BMR and burns it. The price of BMR (and your portfolio) rises even more 🚀.

🧸 Bearish

• You purchase 100 USDT and receive 100 BMR. Your Safety Net will have a claim threshold of 50 USDT

• The price drops to 50 USDT. You claim your Safety Net and receive immediately: 50 USDT locked value and the 50 USDT residual value of the coins which are sold right away.

• The 50% price drop is compensated for you with 100%. The Safety Net gave you 50 USDT, the residual value of BMR was at most 50 USDT. You have lost 0% with Boomerang. Whenever you have had another crypto coin, you would have lost 50% of your money 👋.

🧨 Massive dump

• You purchase 100 USDT and receive 100 BMR. Your Safety Net will have a claim threshold of 50 USDT.

• The price drops to 25 USDT. You claim your Safety Net and receive immediately: 50 USDT locked value and the 25 USDT residual value of the coins which are sold right away.

• The 75% price drop is compensated for you with 75%. You have lost only 5% with Boomerang. Whenever you have had another crypto coin, you would have lost 75% 👋.

• It's very likely the Bank will use it reserves to buyback-and-burn trying to reverse the price drop. You can choose to wait for this to happen and not claim your Safety Net.