# Bollinger Bands Booster - Degen Level: Master

This is something we took from [Smartcoin](https://smartcoin-tokenomics.gitbook.io/smartcoin-tokenomics/smartcoin/tokenomics/bollinger-band-booster). These guys are smart. No, really.

Bollinger Bands are a set of trendlines used on a price chart as a metric to determine when prices are high or low on a relative basis. They are typically plotted two standard deviations (both positively and negatively) away from the simple moving average of an asset's price.

Bollinger bands work in pairs, with an upper and a lower band used in conjunction with a moving average (or central band). The closer the prices move to the upper band, the more the asset could be considered to be overbought. If the price trends more towards the lower band, the more the asset could be indicated to be oversold.

In other words, when prices trend towards the bottom Bollinger line, we have entered the “danger zone”, which could indicate a likelihood of sustained downward sell pressure.

SmartCoin solved for this via innovative tokenomics. When the price falls below the lower Bollinger band, their **Bollinger Band Booster** goes into effect, boosting the staking APR.

We modified this mechanism a bit: as soon as the $PONZI price will fall below the lower BB, our treasury will automatically buyback tokens and burn them. This will help price get back on track pretty fast.
