ArbitrageCoefficient is used when PegPrice = 1 to allow profit for traders, so volume does not dries up
TaxPercentage is capped at 1.0 (we tax 100% at 50% price difference and not more)
Sell side receives Value of XXX - TotalTax
Buybacks. From this step beyond, we can follow without CEX implementation. Does not have to be realtime. For the simulation in this library, we do realtime buybacks and distribute the USTC into the pools (swap 47.5% , staking 47.5%, oracle 2.5%, community 2.5%). The ratios to be configurable in the simulation.
Kyjaque
commented
1 year ago
The final specs of the taxing/buybacks of a CEX
ExecutionPrice < PegPrice or (ExecutionPrice > PegPrice and PegPrice = 1) => T = Abs(PegPrice - ExecutionPrice) (1 - ArbitrageCoefficient) TaxPercentage = 2 T / PegPrice TaxTotal = TaxPercentage * ValueInXXX
ExecutionPrice > PegPrice and PegPrice < 1 => TaxTotal = 0
notes:
ArbitrageCoefficient is used when PegPrice = 1 to allow profit for traders, so volume does not dries up TaxPercentage is capped at 1.0 (we tax 100% at 50% price difference and not more) Sell side receives Value of XXX - TotalTax
Buy side receives Volume of USTC
LUNC "account" receives TaxTotal (1 - CexTaxCoefficient) CEX receives TaxTotal CexTaxCoeffiecient