Tomb Finance was a protocol built for Fantom Opera whose documentation described TOMB as targeting one FTM, not one U.S. dollar. That was a market target supported by token incentives, not collateral or a guarantee that the price would stay at the target.
How the three tokens fit together
TOMB was the exchange token. TSHARE gave holders governance rights and, when staked in the Masonry during eligible expansion periods, a share of newly issued TOMB. TBOND was the contraction instrument: users could exchange TOMB for bonds under the protocol rules, reducing TOMB in circulation; redemption depended on the price recovering and the Treasury having TOMB available. These mechanics could influence incentives, but could not force buyers to restore a peg.
What the peg did and did not mean
Because the target was denominated in FTM, a TOMB price near one FTM did not make it stable in dollars. If FTM fell against the dollar, the dollar value of a token near the FTM target could also fall. A design that adjusts supply is still exposed to demand, liquidity, contract, governance and confidence risks; token emissions and quoted yields are not guaranteed returns.
Historical status and evidence limits
The project documentation is a record of the protocol design, not proof that every contract, market or bond-redemption route remains active today. The original team’s September 2021 post-mortem attributed a sharp sell-off to a gatekeeper-fee workaround and rumors; that is the team’s account of the episode, not an independent investigation or a complete explanation of the protocol’s later history.
Social Media Sentiment
A March 2022 r/FantomFoundation discussion began with TOMB below its FTM target and included both confident expectations of a recovery and warnings about peg-loss risk. It captures a small, time-specific Reddit conversation during one market episode; it is not a representative survey or evidence of present-day sentiment. the March 2022 Tomb peg discussion on Reddit
Last updated: 2026-10
Related Terms
See Also
- Why Algorithmic Stablecoins Keep Failing
- What Tokenomics Means for a Crypto Project
- Bitcoin as Collateral in DeFi
- ChangeNOW
Sources
- Tomb Protocol: Tokens — The project documentation describes the stated roles and intended FTM target for TOMB, TSHARE and TBOND.
- Tomb Protocol: Bonds Mechanism — This page documents when bonds are issued and the conditions described for later redemption.
- Tomb Finance Post Mortem (team account) — The original team recounts the September 2021 gatekeeper incident and its view of the resulting sell-off.