$MODA Minting and Buyback

The minting and buyback mechanism of $MODA is executed in the OTC Market dynamically based on mUSDT Vault Collateral Rate.

When the Collateral Rate is under 100%, $MODA will be slowly minted in exchange for USDT and deposited into the mUSDT vault.

The daily max minting quota is 0.05% of the $MODA total supply. The max minting quota is mUSDT Vault’s $MODA Allocation, which is initially 20% of the $MODA total supply.

When the Collateral Rate is over 130%, USDT in mUSDT Vault will be slowly used to buyback $MODA.

OTC Trade

OTC trades are using the 1-hour TWAP price of $MODA.

When mUSDT Vault Collateral Rate is insufficient, the minted $MODA is slowly sold through OTC to safely refill the mUSDT Vault, not put the sell pressure to the market directly.

When Collateral Rate is sufficient, a part of the negative PnL will be sent to OTC Liquidity Pool. Everyone can use the OTC liquidity pool to sell their $MODA.

mUSDT Vault will slowly buy $MODA to prevent arbitrageurs from maliciously buying a large amount of $MODA in advance, pumping up the price sharply and causing unnecessary losses to the Vault.