lUSDT Minting and Burning
Lpotic Network facilitates the minting and burning of lUSDT tokens, a process that is aligned with the lUSDT's current market price in the vault.
Minting Process:
Users can deposit USDT into the lUSDT Vault for minting lUSDT, a process that does not impact lUSDT’s market price.
Minting is permissible only when the Vault Collateral Rate is below 150%.
Discounts and Locking Period:
The lUSDT Vault offers minting discounts influenced by the locking period and the Collateral Rate, encouraging users to mint and lock lUSDT.
Daily minting limits are capped at a maximum of 2% of the vault's total value, with locking periods ranging from 14 to 365 days.
Discount Rate Calculation:
The discount rate for minting and locking lUSDT varies according to the Vault Collateral Rate and the locking period.
This rate linearly decreases from 5% to 0% when the Collateral Rate lies between 100% and 150%.
$LPOTIC Minting and Buyback
The $LPOTIC token, an integral part of the Loptic Network, undergoes dynamic minting and buyback processes based on the lUSDT Vault’s Collateral Rate, primarily conducted within the OTC Market.
Minting of $LPOTIC:
When the Collateral Rate falls below 100%, $LPOTIC is minted in exchange for USDT, which is subsequently deposited into the lUSDT Vault.
The daily minting limit is set at 0.05% of the total supply of $LPOTIC.
Buyback of $LPOTIC:
If the Collateral Rate exceeds 130%, the lUSDT Vault gradually utilizes its USDT reserves to purchase $LPOTIC.
OTC Trade Mechanism
OTC trading within the Loptic Network is conducted using the 1-hour TWAP price of $LPOTIC.
Selling Minted $LPOTIC:
In scenarios where the Collateral Rate is insufficient, minted $LPOTIC is sold via OTC trades to safely replenish the lUSDT Vault, minimizing potential market impact.
To prevent speculative price surges and losses from arbitrage activities, the lUSDT Vault progressively acquires $LPOTIC, particularly when the Collateral Rate is deemed sufficient.
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