> For the complete documentation index, see [llms.txt](https://docs.marquee.fi/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.marquee.fi/protocol/secondary-offering-and-repurchase.md).

# Secondary Offering & Repurchase

The stablecoin USDT backs MARQ. When the price of [MARQ](https://web.archive.org/web/20231208031610/https://docs.marquee.fi/protocol/secondary-offering-and-repurchase) lies above USDT, the protocol automatically supplies and distributes new [MARQ](https://web.archive.org/web/20231208031610/https://docs.marquee.fi/protocol/secondary-offering-and-repurchase), which drives the price of [MARQ](https://web.archive.org/web/20231208031610/https://docs.marquee.fi/protocol/secondary-offering-and-repurchase) down. When the price of [MARQ](https://web.archive.org/web/20231208031610/https://docs.marquee.fi/protocol/secondary-offering-and-repurchase) lies below USDT, the protocol automatically purchases and burns existing [MARQ](https://web.archive.org/web/20231208031610/https://docs.marquee.fi/protocol/secondary-offering-and-repurchase), which pushes up the price of [MARQ](https://web.archive.org/web/20231208031610/https://docs.marquee.fi/protocol/secondary-offering-and-repurchase). At the end of each epoch, the supply or the repurchase occurs based on the above rule to stabilize the [MARQ](https://web.archive.org/web/20231208031610/https://docs.marquee.fi/protocol/secondary-offering-and-repurchase) price.​

The amount of newly minted [MARQ](https://web.archive.org/web/20231208031610/https://docs.marquee.fi/protocol/secondary-offering-and-repurchase) is given below:

<figure><img src="/files/vPSXGuLIVn2GHroEJmzu" alt=""><figcaption></figcaption></figure>

The amount to repurchase is given below:

TWAP is the time-weighted average price of MARQ in the week.​

**ICV** is the inflation control variable that can be adjusted by DAO governance to control the degree of inflation; a higher value of ICV indicates a greater amount of MARQ supply and hence, a greater inflation rate.​

**DCV** is the deflation control variable which is again controlled by DAO governance. The greater DCV, the greater amount of repurchased and burned MARQ.​

Finally,

<figure><img src="/files/5guCRxx6V5xjOdeYHSAZ" alt=""><figcaption></figcaption></figure>

Where Reserves are the total value of assets reserved in the vault.


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