Mint/Redeem

Unlike most other stable coin projects that allow users to mint/redeem themselves, HYDT only allows certain smart contracts to mint/redeem HYDT, and these features are only activated when the HYDT exchange rate is out of peg range.

When HYDT price is above 1.02 USD, Mint contract is called once every 4 hours, HYDT is minted and sold for BNB on Pankaceswap BNB/HYDT pair, BNB is transferred to the reserve address. The amount is calculated as follows :

Mint amount = (Current price - 0.9)^2 * Reserve balance * 0.04

If the HYDT price is below 0.98 USD, Redeem contract is called once every 4 hours, where HYDT is bought with BNB from the reserve address and burned. The amount is calculated as follows :

Redeem amount = (1.1 - current price)^2 * Reserve balance * 0.004

The Mint contract and the Redeem contract are triggered based on the Pancake Swap HYDT/USDT price.

If Mint and Redeem swap orders cause more than 0.5% slippage on the BNB/HYDT pancake swap pool, these orders will be split into small pieces and executed multiple times to minimize slippage.