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Only 99% is withdrawn because if there are no other LPs there could be rounding errors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 updated