> For the complete documentation index, see [llms.txt](https://jewellery-finance.gitbook.io/welcome-to-jewelleryfinance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://jewellery-finance.gitbook.io/welcome-to-jewelleryfinance/introduction.md).

# Introduction

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## What is Jewellery Finance

Jewellery Finance offers the first decentralized algorithmic stable coin on Cronos Network and Polygon Network, aiming to be pegged to the price of 1 CRO/WMATIC via seigniorage. 

The protocol's underlying mechanisms are designed in a way to ensure a peg of RUBY(RUBY TOKEN):WCRO/WMATIC is achieved, and once achieved, it is maintained to establish $RUBY as a mirrored, liquid asset to $WCRO/$WMATIC. Protocol accomplishes this by introducing unique economic centric dynamics into the market through its three tokens.

## How does the protocol work?

The Jewellery Finance is based on a series of complex interactions, with the behavior of multiple stakeholders deciding the pricing dynamics of the multiple tokens of the ecosystem.

* When **RUBY price is over the peg** (like it is expected it will be for the initial few weeks/months of the project), new RUBY are minted to drive the price down. These new RUBY are allocated to RSHARE holders in the boardroom, thus staking **Diamond** in the boardroom makes the most logical RUBY during this period.
* When **RUBY price is at the peg**, RUBY holders can use the RUBY-WCRO LP to increase their yield. At this point, new RUBY will stop getting minted, and each investor's **Diamond** will drive voting rights to have a say in the governance of the platform through DAO.
* When **RUBY price drops below the peg,** investor's strategy should lean towards buying **Sapphire** using RUBY. The RUBY used to buy **Sapphire** will be burned, which reduces supply of RUBY and brings its price back to peg, at which point investors can sell **Sapphire** to earn profit.

## What is the point of JewelleryFinance? 

In the short term, *until the peg is achieved*, RUBY is focusing on **optimizing the protocol and creating wealth** for our early investors through Farms and Boardroom.

Once the peg is achieved, the system’s mechanisms will focus on **stability and consistency** so that **$RUBY** can function as **a mirrored, liquid asset to $WCRO**

For RUBY to have value, WCRO needs too to have value - for this, we need a vibrant WCRO ecosystem with flourishing projects. JewelleryFinance shift to a DAO-based governance system will ensure that the whole community stays together, makes decisions together.

## What are the three tokens of JewelleryFinance? 

RUBY multi-token protocol consists of the following three tokens and each plays a critical role in establishing this protocol:

1. **RUBY (PEGS)** - The RUBY token is designed for use as a medium of exchange. The built-in stability mechanism in the protocol aims to maintain RUBY peg of 1 RUBY = 1 WCRO
2. **DIAMOND (SHARE)** - **DIAMOND** token holders have both governance voting and ownership rights of the protocol. Once DAO is established, they will play a crucial role in the governance of RUBY. **DIAMOND** can be staked in the boardroom to earn a part of minted RUBY as rewards.
3. **SAPPHIRE** **($BOND)** - **SAPPHIRE** main job is to help incentivize and reward users for ensuring peg during an epoch contraction period.