TransmuterV2
The TransmuterV2
is 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.
Each TransmuterV2
supports a single underlyingToken
as collateral, and is able to exchange debtToken
for only that underlyingToken
.
The TransmuterV2
recieves underlyingToken
s from the AlchemistV2
whenever any of the repay()
, liquidate()
, or 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 TransmuterV2
can be deposited back into the AlchemistV2
to boost yields for Alchemist depositors, or be deployed elsewhere to help maintain the peg.
When debtToken
s are deposited into the TransmuterV2
, a user recieves "exchanged tokens" into their account over time, representing the amount of debtToken
that has been implicitly converted to underlyingToken
that have dripped into the TransmuterV2
. This rate of conversion is, at most, the rate that collateral is exchanged into the TransmuterV2
multiplied by their overall percent stake of debtTokens
in the TransmuterV2
. While collateral recieved from harvest()
calls has a relatively stable rate, collateral recieved from repay()
and liquidate()
functions are entirely user dependent, causing the overall transmutation rate to potentially fluctuate.
Functions
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