Rebound

The Inflation Controller

Wave’s innovative Rebound feature introduces a smart mechanism to manage protocol inflation and maintain asset value sustainability.

This function makes the protocol independent from market fluctuations, ensuring stable emissions and preserving investor confidence.

The protocol continuously distributes rewards via emissions. When token supply rises too aggressively relative to demand, the Rebound function activates — triggering a governance-driven, distributed deflationary adjustment to rebalance the supply.

ℹ️ In short: the Rebound function is an inflation controller.

How does the Rebound work?

The Rebound is not a recurring function. It only activates when a significant imbalance is detected in the protocol’s economic ratios.

Wave’s smart contracts track inflation in real-time. When they detect that emissions have exceeded a defined threshold, the Rebound logic calculates the necessary adjustment to restore a healthy token-to-liquidity ratio.

This results in an automatic correction — reducing the circulating supply and re-aligning incentives across the ecosystem.

Wave’s implementation monitors WAVE-to-WETH ratios in the liquidity pools on Uniswap. When the ratio shifts excessively upward, the Rebound system kicks in to reduce excess supply and return to a sustainable equilibrium.

Benefits

• ♻️ Rebounding increases token scarcity

• 📈 Scarcity improves asset sustainability

• 🔒 Protocol health is reinforced by adaptive monetary logic