On seed pools end, 2021–01–13 14:00 UTC Time, Boardroom will start its daily rebase process.
What happens when the rebasing?
Because TBC is a algorithmic stablecoin pegged to 1 USDt, it will rebase daily, trying to adjust its market price to 1 USDt.
This is achieved by the boardroom and the bond.
Boardroom:
When the 24-hour twap price of TBC >1.05 USDT , on 14:00 UTC daily, the system will mint extra TBC to boardroom, where those TBC will be allocated as rewards to all TBS holders. TBS holders get the rewarded TBC and can sell on the market to force the price to 1.
The number of TBC minted as rewards = circulatingSupply *(oraclePrice-1)
Bond
When oracle price(1-hour twap price) dropped below 1 USDT, TBB can be bought using TBC with a discount, those TBC are burnt to decrease TBC supply. When oracle price increased above 1.05 USDT, TBB can be redeemed back to TBC via a 1:1 ratio. (Those TBC are from boardroom, which are minted during rebase. The rest of the minted TBC are allocated to TBS stakers.)
TBB = TBC²
For example, when TBC price = 0.75, TBB price = 0.5625, TBB = 0.75 TBC. If a user bought 1.25 TBB using 1 TBC, when TBC price > 1.05 USDT, users can swap his/her 1.25 TBB to 1.25 TBC.
This mechanism motivates users to buy TBC when price is lower than pegged price and push the price back to 1.
