Treasury Multiplier
The treasury multiplier refers to the amount of weth backing each token. These funds are available for use by the holder of each token at any given time. Every action, outside of repaying loans, is designed to increase the multipler over time. Giving users greater access to funds and thus greater access to leverage.
Users may use the funds however they desire after locking up the necessary collateral in $RIA tokens. There is no need to pay back the loan taken against the tokens. However there is a weekly expiry on the loans that if not paid back will 'terminate' the loan which is a loss of all collateral. If users wish to keep the loan open they can extend it an additional week by paying .025 ether. The size of the loan does not matter it could be 100 million dollars or 100 dollars and the rate is the same. They can also keep collateral in the contract after paying back a loan, and as long as the loan is fully paid back (meaning zero outstanding debts) the loan can not be terminated.
Actions that increase the multipler
- Mints
- Redemptions
- Borrowing
- Adding additional collateral
- Extending the loan
- Treasury based buying
- Treasury based selling
Actions that decrease the multipler
-None
No effect on the multipler
- Repayment of debts