When a user utilizes the SWAP function to exchange USDC for STL on ShadeTrading, the treasury will send user an equivalent amount of STL, and the received USDC will be used as a reserve.
Liquidity provision
The treasury may adopt the following policies to stabilize the price of STL:
Liquidity provider: The portion of the USDC reserves will be used to provide liquidity in the liquidity pool, aiming to stabilize STL's price.
Burn:
The treasury will burn STL purchased from the secondary market to control inflations.
The treasury will burn ALL management fees, reducing the effective supply.
