eUSD Dynamic Minting Rate
Match Finance may encounter situations where the Total Value Locked (TVL) for DLP and stETH doesn't match. In such cases, the system first evaluates the ratio of DLP/stETH TVL. If DLP/stETH < 2.5%, any stETH in excess of DLP * 40 will be separated. This means that stETH within the DLP and up to the threshold will participate in Lybra's mining (Match Pool) as per the normal process. The remaining stETH will be moved to another fund pool (Pending Pool) and queued for entry of more DLP. At this point, newly deposited stETH will also be transferred to the Pending Pool.
Once the DLP/stETH ratio in the Match Pool exceeds 2.75%, the protocol will extract a portion of stETH from the Pending Pool into the Match Pool. Conversely, if DLP/stETH < 2.25%, the protocol will extract a portion of stETH from the Match Pool into the Pending Pool. In the Match Pool, eUSD is minted uniformly by Match Finance, and the collateral ratio is dynamically adjusted based on market withdrawals to maintain:
DLP/eUSD ≈ 6% for higher yields.
LSD/eUSD ≈ the protocol's average collateral ratio (currently around 200%) for fund security.
Match Finance will dynamically adjust the eUSD minting quantity based on these two parameters, rebalancing when the parameters reach upper/lower limits, such as:
Reducing eUSD minting when DLP/eUSD < 5.5% and increasing it when DLP/eUSD > 6.5%.
Reducing eUSD minting when LSD/eUSD < 190% and increasing it when LSD/eUSD > 210%.
If there is a conflict between the collateral ratios corresponding to DLP/eUSD and LSD/eUSD:
If DLP/eUSD is less than 5.5%, while ensuring the required collateralization ratio for LSD/eUSD, it is necessary to simultaneously satisfy (or further require satisfaction of) the collateralization ratio requirement for DLP/eUSD.
If DLP/eUSD is greater than 6.5%, while ensuring the required collateralization ratio for LSD/eUSD, the aim is to satisfy the collateralization ratio requirement for DLP/eUSD as much as possible (approaching 6.5%).
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