$TULIP - Algorithmic Stablecoin

TULIP token is designed to be used as a medium of exchange. The built-in stability mechanism in the protocol aims to maintain TULIP's peg of 1 TULIP = 1 ROSE in the long run.
Note that TULIP actively pegs via the algorithm, it does not mean it will be valued at 1 TULIP = 1 ROSE at all times as it is not collateralized. TULIP is not to be confused for a crypto or fiat-backed stablecoin.

$PETAL - Seigniorage Token

Petals ($PETAL) are one of the ways to measure the value of the Tulip Protocol and shareholder trust in its ability to maintain TULIP close to peg. During epoch expansions the protocol mints TULIP and distributes it proportionally to all PETAL holders who have staked their tokens in the GARDEN.
PETAL has a maximum total supply of 70000 tokens distributed as follows:
  1. 1.
    Team Allocation: 4990 PETAL vested linearly over 3 months
  2. 2.
    Rewards: 65000 PETAL are allocated for incentivizing Liquidity Providers in two shares pools for 3 months
  3. 3.
    Initial mint: 10 PETAL minted upon contract creation for initial pool

$BUD - Bonds

TULIP Bonds (BUD) main job is to help incentivize changes in TULIP supply during an epoch contraction period. When the TWAP (Time Weighted Average Price) of TULIP falls below 1:1 ROSE, BUDs are issued and can be bought with TULIP at the current price. Exchanging TULIP for BUD burns TULIP tokens, taking them out of circulation (deflation) and helping to get the price back up to peg. These BUD can be redeemed for TULIP when the price is above peg in the future, plus an extra incentive for the longer they are held above peg. This amounts to inflation and sell pressure for TULIP when it is above peg, helping to push it back toward 1 TULIP to 1 ROSE ratio.
All holders are able to redeem their BUD for TULIP as long as the Treasury has a positive TULIP balance, which typically happens when the protocol is in epoch expansion periods.