TransmuterV2is the main contract in any Alchemix debt-system that helps put upward pressure on the price of the debt-token relative to its collateral asset(s) by allowing any market participant to exchange the supported debt-token for underlying collateral at a 1:1 rate.
TransmuterV2supports a single
underlyingTokenas collateral, and is able to exchange
debtTokenfor only that
underlyingTokens from the
AlchemistV2whenever any of the
harvest()functions are called. The repaid, liquidated, or harvested collateral is first sent to the
TransmuterBuffer, where excess funds that are not exchanged in the
TransmuterV2can be deposited back into the
AlchemistV2to boost yields for Alchemist depositors, or be deployed elsewhere to help maintain the peg.
debtTokens are deposited into the
TransmuterV2, a user recieves "exchanged tokens" into their account over time, representing the amount of
debtTokenthat has been implicitly converted to
underlyingTokenthat have dripped into the
TransmuterV2. This rate of conversion is, at most, the rate that collateral is exchanged into the
TransmuterV2multiplied by their overall percent stake of
TransmuterV2. While collateral recieved from
harvest()calls has a relatively stable rate, collateral recieved from
liquidate()functions are entirely user dependent, causing the overall transmutation rate to potentially fluctuate.
TransmuterBufferthat can be used to control the flow of transmutable collateral. It acts as another cap on the speed at which funds are exchanged into the