1st Question: Why do we need a token pegged to FTM? The short answer they always give you is liquidity.
Long answer:
Fantom is still a relatively small chain, 7/8 billion marketcap relative to Ethereum's 300 billion. If Fantom can grow to the size of Ethereum then liquidity would be a smaller issue. I think it's more so in this current transition phase that you could make a case for Tomb (assuming Fantom ever catches up to Eth in marketcap).
Lack of liquidity just means that when you make a purchase, how much will the price move during the transaction and how much loss do you incur during the swap, we call this price slippage. Price slippage is low when small/medium-sized players like me (and maybe you) make a swap, but it's a big cost for people playing with 8 digits USD worth.
You can avoid price slippage on Eth with a Dex aggregator such as 1inch or Firebird for alt layer 1s. But the effectiveness of the dex aggregator drops if the overall liquidity is low. To illustrate this, take about 10 million FTM, roughly 30 million USD and try to swap that for USDC. On Firebird, you'll incur a price slippage of over 14%. Would you make a swap if it cost you 14% loss upfront? This is made even worse without the aggregator if you just make the swap on one liquidity pool (Here's your why)
Now on 1inch, try swapping 30 million USD worth of ETH to USDC (4% on uniswap, 0.61% on 1inch) you save about 3% from the dex aggregator. This shows that dex aggregators don't work as well when you don't have liquidity across the whole Layer 1's ecosystem. Which is the case for pretty much all Layer 1s, barring Eth, at the moment.
Tomb is trying to clone FTM to increase liquidity. Admittedly, they are NOT being used for this purpose at all right now. But that's the idea they are heading towards. Whether you believe this will work or not is up for debate and who really benefits from this. Maybe long term having large amounts of liquidity can benefit everyone if it can pull in bigger whale money, but Idk if whales would be willing to drop 8 digits in Fantom, some do, if you just scroll through Debank a bit you'll find them.
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2nd question: Would this be dilutive in the value for FTM? Not really because of the algo stablecoin peg. It's not the same as just printing more FTM, because in this case, the peg would be the direction that the price of each TOMB token will trend to over time. When people choose to buy Tomb over FTM, the price of each Tomb token will rise to be a little bit higher than FTM. This value is transferred to TSHARE holders who mint TOMB which they can sell on market for FTM, alternatively, TOMB holders themselves can also sell on market for the sake of price arbitrage. Anything you do on Tomb Finance with your TOMB tokens involves selling a portion of them (or buying more FTM). Meaning all excess value captured by TOMB will eventually be slowly arbitraged back to FTM.
To be fair there is some value that remains in the TOMB-FTM LP or in unused TOMB lying around that might have been in FTM otherwise. But I wouldn't say people holding LQDR, Spirit, Boo, Tarot, etc are diluting FTM.
But if I were to rephrase the question as to whether TOMB inflation or substitution of FTM with TOMB in LPs takes away value from FTM, I would say no because of the algo peg and how value will eventually make its way back to FTM.
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That question on the price dilution is interesting and sometimes asked on reddit and maybe worth thinking about more. What I wrote above are my present thoughts on that. Might change in the future, maybe worth writing an article about.
