Mechanics
tRUSH was designed with enhanced mechanics and utility upgrade in mind
1. Dynamic Supply
Cap & Circulation – tRUSH has a hard cap of 100 M tokens, but the active circulating supply is fluid.
Minting – When users mint, new tokens are created. Minting is always charged a fee that is deducted from the minted amount, preventing spam and creating a built‑in inflation control.
Burning – Users can burn tRUSH to recover their deposited collateral, which reduces the circulating supply and introduces a supply shock that can be advantageous for arbitrageurs.
Governance‑controlled inflation – The fee structure and mint‑burn ratio can be adjusted by the community, ensuring that minting costs rise with inflation, preserving value.
2. Incentive‑Driven Fees
Pool APR Boost – All minting fees are routed to Pharaoh DEX, where they are used to increase the liquidity‑pool APYs.
Penalty Fees on Burning – When a user burns tRUSH to reclaim collateral, a small penalty fee is taken. This fee remains in tRUSH form and is used as an incentive for holders, keeping the token circulating.
3. Collateral & Treasury
Fully Backed Tokens – Every tRUSH token is backed 1:1 by the underlying asset deposited by the user. All deposits are held in a Collateral Pool.
Treasury Accumulation – Fees collected from minting are sent to a dedicated Treasury contract (in tRUSH). The treasury can be used to fund ecosystem growth, liquidity incentives, and community initiatives.
4. Yield Yak Strategy
Capital Efficiency Upgrade — tRUSH’s CollateralManager now stakes a portion of its USDC collateral into Yield Yak’s aiUSD autocompounding MilkVault strategy to earn and compound yield while preserving instant-exit liquidity.
Target Ratio : By default, 50 % of total collateral is staked and 50 % remains idle as an exit buffer.
Auto-Rebalance : If the ratio drifts ± 20 %, CollateralManager automatically rebalances — depositing excess buffer or withdrawing from the vault after Yield Yak’s 3-hour cooldown.
Safety Layer : If an Instant Exit request exceeds the available buffer, the transaction reverts to prevent undercollateralization.
Owner Controls : Governance may tune stake ratio, rebalance threshold, and cooldown timers, or disable staking to recall funds to the buffer.
Yield Flow : All yield realized through rebalances returns to the CollateralManager and is distributed via existing treasury hooks, increasing the backing per tRUSH.
This integration turns idle collateral into productive capital without sacrificing liquidity or backing guarantees, creating a compound-positive feedback loop between collateral growth and token value.
5. Market Impact
Supply Shock – By reducing the circulating supply through burns, tRUSH can create a temporary scarcity, influencing open‑market prices and providing opportunities for arbitrage traders.
Instant Exit – The burn mechanism gives users a quick exit route, reinforcing confidence in the token’s liquidity and stability.
Together, these mechanics create a self‑sustaining ecosystem: user actions (minting & burning) not only adjust supply but also fund liquidity rewards, treasury growth, and maintain a healthy market dynamic.
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