Expansion

At the start of each epoch, the protocol checks the time-weighted average price (TWAP) of $UTOMB. If the TWAP is greater than or equal to 1.001, new $UTOMB tokens will be minted in the boardroom. The specific amount of new $UTOMB tokens minted during this process is determined by the current circulating supply of $UTOMB.

We chose to set the peg ratio at 1.001 for the UTOMB-ETH LP, considering the unique characteristics of a sAMM (Stable Automated Market Maker) system. In a sAMM, stability and sustainability are paramount. The 1.001 peg ratio was selected to create a more balanced and sustainable equilibrium within the LP. This decision aligns with the principles of a sAMM, where precision in maintaining pegs is essential for the stability of the ecosystem. By using 1.001, we ensure a tighter and more consistent peg that benefits the entire community participating in the UTOMB-ETH LP.