1.“What will happen when circulating supply = Total supply? Will emissions stop?”

Yes. Once the max supply of $DSHARE (60K) is reached, emissions stop. This is going to be in a year from when the $DSHARE farms start January 3rd. $DSHARE will always print $DIBS in the Piggybank, though, as long as $DIBS is above peg.

2.“Why is ‘at-peg’ (TWAP between 1.00 and 1.01) the best time to provide liquidity?”

When $DIBS is pegged or close to being pegged to 1000 DIBS : 1 BNB, it is more akin to having exposure to a single asset (single staking) than to your traditional LP'ing experience, where you would run the risk of impermanent loss if one of the tokens went up in value and the other did not.

3. "Wait, you mean that if $BNB pumps, $DIBS pumps with it?"

Yes! Let's take an example: If $BNB pumps in price, it won't 'outrun' $DIBS. The APR will vary in terms of its $USD value, but emissions won’t. This is something that wouldn't be possible with another 1:1 pegged asset like a stable coin LP position, where the $USD value is directly tied to the emissions. If $BNB rises in $USD value, $DIBS goes with it. Same if $BNB falls in $USD value, $DIBS will be worth less in $USD, but it won’t affect the peg. The only thing that can change the price of $DIBS in terms of its $BNB value is buying and selling it.
Last modified 4mo ago