Discount Offer

'Discount offer' is a mechanism that is only activated in Adjustment Mode. In this mechanism, users can purchase margin tokens like ETHx using USB, and when AAR is lower than AART, the discount for purchases gradually increases over time. It is a Dutch auction-based exchange.

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For the V-Vault, let's take the ETHx discount offer as an example:

• In the Adjustment Mode, when AAR is between 101% and AART, the formula for trading ETHx with USB is:

$\Delta ETHx = \frac{\Delta USB \times M_{ETHx}}{M_{ETH} \times P_{eth} - M_{USB-ETH}} \times (1 + r)$

Where ( r ) is the compensation coefficient, which gradually increases over time.

Additionally, to prevent extreme volatility risks, when the AAR falls below 110%, the 'Discount offer' will be paused for half an hour, and it will resume after one hour.

• When AAR falls below 101%, the formula for trading ETHx with USB changes to:

$\Delta ETHx = \frac{\Delta USB \times M_{ETHx} \times 100}{M_{USB-ETH}}$

• When AAR rises over AART, it enters Stability Mode, and the discount offer ends.

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For the S-Vault, let's take the USDBx discount offer as an example:

• When AAR falls below AARS, the formula for trading USDBx with USB is:

$\Delta USDBx = \frac{\Delta USB \times M_{USDBx}}{M_{USDB} \times P_{usdb} - M_{USB-USDB}} \times (1 + r)$

Where ( r ) is the compensation coefficient, which gradually increases over time.

• When AAR falls below 101%, the formula for trading USDBx with USB changes to:

$\Delta USDBx = \frac{\Delta USB \times M_{USDBx} \times 100}{M_{USB-USDB}}$

• When AAR rises over AARS, it enters Stability Mode, and the discount offer ends.