Field

The Field is MelonFarm's credit facility. MelonFarm relies on a decentralized set of creditors to maintain Melon price stability.

Farmers who Sow Melons (lend Melons to the Farm) in exchange for Pods are known as Sowers (or Lenders). The Temperature is the interest rate on Melon loans.

At the beginning of each Season, MelonFarm changes the Soil and Temperature at the beginning of according to the peg maintenance mechanism.

Soil

Anytime Melonfarm is willing to issue Pods, there is Soil in the Field. Soil represents the number of Melons that MelonFarm is currently willing to borrow.

When Melons are Sown, MelonFarm burns them, permanently removing the Sown Melons from the melon supply. For example, if there are 10 Soil available and 10 Melons are Sown, the Soil supply becomes 0, and 10 Melons are removed from the Melon supply.

When deltaSupply > 0, the Soil supply decreases logarithmically at the beginning of each season. When deltaSupply < 0, Melonfarm sets the Soil supply to deltaSupply. For more details, please read Soil Supply.

Pod

Melons are Sown in exchange for Pods, the MelonFarm-native debt asset. Loans to MelonFarm are issued with a fixed interest rate, known as Temperature, and an unknown maturity date.

The number of Pods received from 1 Sown Melon is determined by the Temperature at the time of Sowing. Newly issued Pods accumulate in the back of the Pod Line. The front of the Pod Line receives 40% of new Melon mints in every season.

Pods Ripen into Harvestable Pods that can be Harvested (redeemed) for 1 Melon each on a First In, First Out (FIFO) basis. There is no penalty for waiting for Harvest Pods.

Pods are ERC-721 tokens and tradeable on the Marketplace like OpenSea. Pods can also be transferred to another address directly.

Temperature

The Temperature is the interest rate for Sowing Melons in the Field. At 500% Temperature, 1 Melon can be Sown in exchange for 5 Pods. Once those Pods become harvestable, they can be Harvested in exchange for 5 Melons.

MelonFarm changes the Maximum Temperature it is willing to offer each Season at the beginning of each Season according to the peg maintenance mechanism.