Mint and Redeem

1. Initial Parameter

For the stable operation and long-term development of PUST assets, in the initial version, the minting limit of PUST will be set. The minting limit of each minting pool: equivalent to 100 million US dollars, of which the minimum dynamic mortgage rate of stablecoin assets is 80%. For rule updates in subsequent versions, please pay attention to the platform's official website or announcement.

2. Mint

All minted PUST share the collateral regardless of the collateral rate when the PUST is minted. When minting occurs, the mathematical relationship between collateral and PUST is as follows:

$P= \overbrace{(Y*P_y)}^{\text{Value of Collateral}} + \overbrace{(Z*P_z)}^{\text{Value of PEACE}}$

$(1-C_r)(Y*P_y) = C_r(Z*P_z)$

$P$ is the units of newly minted PUST

$C_r$ is the collateral ratio

$Y$ is the units of collateral

$P_y$ is the price of $Y$ in USD

$Z$ is the units of PEACE burned

$P_z$ is the price of PEACE in USD

3. Mint Example

Case 1: When the price of USDT is $1, and 200 USDT is used to mint PUST at 100% mortgage rate, the calculation process of the relevant value is as follows.

1. The amount of PEACE needed in collateral

$(1−1.00)(200∗1.00)=1.00(Z∗Pz) 👇$

$0=(Z∗Pz)👇$

$Z=0$

When the collateral ratio is 100% (fully collateralized), minting PUST does not require PEACE.

2. The amount of newly minted PUST

$P=(200∗1.00)+(0)👇$

$P=200$

When the collateral ratio is 100%, 200 PUST can be minted out.

Case 2: When the price of USDT is $1, the PEACE is $2, and 120 USDT is used to mint PUST at an 80% mortgage rate, the calculation process of the relevant value is as follows.

1. The amount of PEACE needed in collateral

$(1 - 0.8)(120 * 1.00) = 0.8(Z*2.00)👇$

$Z = 15$

Minting PUST needs to provide 120 USDT and 15 PEACE.

2. The amount of PUST minted out

$P= (120*1.00) + (15*2.00)$ 👇

$P= 150$

When the collateral ratio is 80%, 150 PUST can be minted out.

Case 3: When the price of USDT is $0.9995, the PEACE is $3.5, and 220 USDT is used to mint PUST at a mortgage rate of 50%, the calculation process of the relevant value is as follows.

1. The amount of PEACE needed in collateral

$(1-0.50)(220*0.9995) = 0.50(Z*3.50)$ 👇

$Z = 62.8257143$

Minting PUST needs to provide 120 USDT and 62.8257143 PEACE.

4. The amount of PUST minted out

$G = (220*0.9995) + (62.8257143*3.50)$ 👇

$G = 439.78$

When the collateral ratio is 50%, 439.78 PUST can be minted out.

4. Redeem

When you redeem, When minting occurs, the mathematical relationship between collateral and pUST is as follows $Y = \dfrac{G*(C_r)}{P_y}$

$Z = \dfrac{G*(1-C_r)}{P_z}$

$G$ indicates the units of PUST redeemed

$G_r$ is the collateral ratio

$Y$ is the units of collateral the user obtained

$P_y$ is the price of the collateral in USD

$Z$ is the units of PEACE the user obtained

$P_z$ is the price of PEACE in USD

5. Redemption Example

Redeem 170 PUST at 65% mortgage rate. USDT’s oracle price is $1, PEACE’s oracle price is $3.75

$Y = \dfrac{170*(.65)}{1.00}$ 👇

$Z = \dfrac{170*(.35)}{3.75}$ 👇

$Y$ = 110.5 and $Z$ = 15.867

You can get 110.5 USDT from the collateral pool and the newly generated 15.867 PEACE, with an overall value of $170 equal to 170 PUST.

Note: In order to simplify the logic and facilitate the demonstration, the calculation of the minting fee (0.5%) and the redemption fee (0.5%) is not included in the above case.