➕Equations

Minting

Minting happens by allowing users to purchase a bond. This bond price is the Mint price.

$$bond Price = 1 + Premium$$

METF has an intrinsic value of 1 MMF, which is roughly equivalent to $1. In order to make a profit from minting, METF charges a premium for each minting action.

$$bondPayout_{reserveBond} = marketValue_{asset}\ /\ bondPrice$$

Bond payout determines the number of METF sold to a minter. For reserve mints, the market value of the assets supplied by the minter is used to determine the bond payout. For example, if a user supplies 1000 MMF and the mint price is 250 MMF, the user will be entitled 4 METF.

$$bondPayout_{lpBond} = marketValue_{lpToken}\ /\ bondPrice$$

For liquidity mints, the market value of the LP tokens supplied by the minter is used to determine the bond payout. For example, if a user supplies 0.001 METF-MMF LP token which is valued at 1000 MMF at the time of bonding, and the bond price is 250 MMF, the user will be entitled 4 METF.

METF Supply

$$METF_{supplyGrowth} = METF_{stakers} + METF_{bonders}$$

METF supply does not have a hard cap. Its supply increases when:

• METF is minted and distributed to the stakers.

• METF is minted for the bonder. This happens whenever someone purchases a bond.

$$METF_{stakers} = METF_{totalSupply} * rewardRate$$

$$METF_{bonders} = bondPayout$$

Whenever someone purchases a bond, a set number of METF is minted. These METF will not be released to the minter all at once - they are vested to the bonder linearly over time. The bond payout uses a different formula for different types of bonds. Check the Minting section above to see how it is calculated.

Backing per METF

$$METF_{backing} = aumBalance_{METF ecosystemAsset}$$

Every METF in circulation is backed by the METF AUM.

$$BackingPerMETF_{reserveBond} = assetSupplied$$

For reserve mints such as MMF minting, the Backing per METF simply equals to the amount of the underlying asset supplied by the minter.

$$BackingPerMETF_{lpBond} = 2sqrt(constantProduct) * (\%\ ownership\ of\ the\ pool)$$

For LP Mints such as METF-MMF Minting, the Backing Per METF is calculated differently because the protocol needs to mark down its value. Why? The LP token pair consists of METF, and each METF in circulation will be backed by these LP tokens - there is a cyclical dependency. To safely guarantee all circulating METF are backed, the protocol marks down the value of these LP tokens.