Price Stability Mechanism

An additional mechanism for stable synt pools

Optimization prices (price surcharges):

Basic principle:

  • Premium mint (2%): purchase price = oracle_price * 1.02

  • burning premium (4%): shipping price = oracle_price * 0.96

Reasons for using different percentages:

Mint (2%):

  • protection against arbitrage with small fluctuations

  • creating a buffer to maintain stability

  • revenue generation for the protocol

  • prevention of excessive pollination

Burn (4%):

  • a higher percentage to curb mass sales

  • creating an asymmetry in favor of token retention

  • compensation of protocol risks during the purchase

  • protection against attacks through quick purchases/sales

Economic justification: Profit from sale = (Sale price - Purchase Price) - (Mint_premium + Burn_premium)From 2% to 4%%:

  • requires >6% price movement for profitable arbitrage

  • a "dead zone" for speculation is being created

  1. Premium functions:

  • price stabilization

  • income generation

  • protection against manipulation

  • creating predictable trading mechanics

  1. Why exactly these values:

  • 2% is enough for basic protection

  • 4% - creates a significant barrier to exit

  • A difference of 6% is the optimal balance between stability and usability

  1. Mechanics of work: Mint_price = Oracle Price * (1 + 0.02) Gorenje Price = Oracle Price * (1 - 0.04) Spread = Mint Price - Gorenje Price

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