How Treasury works?

Treasury Guarantee System

The Treasury Investment Fund = Treasury Fund - Risk-Free Value Fund. The Treasury Investment Fund is allocated to the AI trading and arbitrage strategy operations of Arbisoo, capturing on-chain revenue, with periodic buybacks of $ABI announced.

The Arbisoo treasury system plays a crucial role in the secure and stable operation of the platform, acting as the core pillar of its foundation. This system not only provides a price floor guarantee for the platform token $ABI, ensuring its stable market value, but also increases revenue by investing flexible funds in AI arbitrage and trading strategies. All profits are used to buy back $ABI, continuously enhancing the token's intrinsic value and market liquidity. This closed-loop capital management mechanism strengthens the market stability of $ABI and provides a solid foundation for Arbisoo's long-term development, making the treasury system the cornerstone of the platform's sustainable growth and user trust.

The issuance of $ABI from the treasury is backed by risk-free assets. When the treasury receives bond purchase funds, the risk-free portion of the funds will be used to mint $ABI at the price floor of 0.1 USDT. A portion of the minted $ABI is distributed to the purchasing user, while the remaining portion is used for staking reward distribution.

The flexible portion of treasury funds, after subtracting the risk-free asset value, is allocated to Arbisoo's AI trading and arbitrage strategies. These operations generate additional profits, which are regularly used to buy back $ABI.

Example: Suppose a user intends to mint $ABI with 1,000 USDT, and the current price of $ABI is 1 USDT. The treasury's risk-free portion is 30%, or 300 USDT. This 300 USDT is used to mint 3,000 $ABI at the price floor of 0.1 USDT. Of this, 1,111 $ABI is allocated to the user, and within five days, 50% of the $ABI minting volume is distributed to the user after the transaction volume requirements are met. The remaining 1,889 $ABI is allocated to the staking pool for rewards.

Treasury Minting and Buyback Algorithm

• Minting Algorithm: epochMint = (TWAP – IV) * supply * ICV * Discount

• Buyback and Burn Algorithm: epochBurn = (TWAP – IV) * supply * DCV * Discount

TWAP: Time-weighted average price IV: $ABI support price Supply: Treasury risk-free value ICV: Inflation coefficient DCV: Deflation coefficient

Risk-Free Asset Value

This refers to stable assets used to support the stable price floor of $ABI in the treasury. When the price of $ABI falls below 0.1 USDT, the system automatically triggers a buyback and burn.

Formula for Risk-Free Asset Value Risk-Free Asset Value = P‾week * ∛(ΔVweek) * 50%

P‾week: Average weekly transaction price ΔVweek: The difference between weekly buy volume and sell volume (minimum value is 0)

The treasury guarantee system undoubtedly serves as the turbo-powered core of Arbisoo's development, solidifying the market value of the platform token $ABI. Through continuous capital investment and buyback mechanisms, the system drives the appreciation of the token. Like a finely tuned engine, it powers the platform's sustained growth, bringing greater trust and stronger returns for users and investors. This core system ensures that Arbisoo maintains a leading position in the competitive market and lays a solid foundation for its long-term growth.