Reweight
Reweights are used to return the Pancake spot price of the $KEY-$HERO pair back to 1.
The algorithm is as follows:
- 1.withdraw 99% of the $KEY and $HERO from pancake LP pool.
- 2.execute a trade with held $KEY to bring the spot price back up to 1
- 3.Mint needed $KEY so the LP pool will hold 1 million $KEY.
- 4.deposit $KEY and $HERO so the LP pool has 1 million $KEY and 1 million HERO (roughly).
- 5.Burn the excessive $HERO.
Only 99% is withdrawn because if there are no other LPs there could be rounding errors
Last modified 1yr ago