Secondary Offering & Repurchase

The stablecoin USDT backs MARQ. When the price of MARQ lies above USDT, the protocol automatically supplies and distributes new MARQ, which drives the price of MARQ down. When the price of MARQ lies below USDT, the protocol automatically purchases and burns existing MARQ, which pushes up the price of MARQ. At the end of each epoch, the supply or the repurchase occurs based on the above rule to stabilize the MARQ price.​

The amount of newly minted MARQ is given below:

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,

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