LUA Minting / Secondary Market
Last updated
Last updated
LUA is minted through stablecoins(USDT/USDC/LUAUSD) and LUAB, with LUAB being a necessity for minting.
For Example: 10 LUA = 10 units of USDT/USDC/LUAUSD corresponding to the price of LUA + 10 LUAB
The function for minting is a dynamic, dual-price, segmented function curve.
The minting process is one-way and it will incentive users with LUAG PTS in V2.
We will also airdrop LUAG PTS to V1 users. LUAG PTS
You can sell LUA through the LUA Secondary Market, and of course, you can also buy LUA in the secondary market.
The protocol will buy back LUA in the secondary market through protocol earnings, using a mechanic similar to TWAMM, over a period of time, the ongoing buyback mechanism will result in the price of LUA in the secondary market being higher than that in the minting protocol.
After buying back some LUA, the protocol will burn the corresponding LUA in the minting function. This eliminates the stablecoin liquidity purchased at the floor price, channels the stablecoins into the 2pool, LUAUSD liquidity, and the acquisition of blockchain core assets.
