Bancor Mint

Overview

SHINOBI can be acquired through two methods: via the Liquidity Pool or through a minting system governed by a Bancor formula.

The minting mechanism is a fundamental financial instrument that facilitates asset transactions typically between the protocol and individual stakeholders over a defined period at prices entirely determined by the market and linked to a mathematical formula.

In other words, SHINOBI token minting functions as a market-driven pricing mechanism with no third-party intervention.

Purchasing SHINOBI via Minting

When purchasing SHINOBI tokens through the mint, buyers provide upfront capital (in HYPE) in exchange for liquid SHINOBI tokens.

The profit potential from minting depends on the SHINOBI price available in the liquidity pool. This setup allows for arbitrage opportunities between the two prices. At the start of the minting system, the SHINOBI mint price will typically be lower; however, due to market fluctuations (buying via mint and price action in the liquidity pool), arbitrage opportunities may arise.

A positive mint purchase rate indicates the mint price is offered below the market price. Conversely, a negative mint purchase rate means the mint price is above the market price.

This variable purchase rate is the mechanism by which the bond market internally adjusts supply according to demand, ensuring the treasury is healthy and funded. The treasury will be used for the redistribution and incentivization of rewards to players.

Additionally, the team will hold a portion of the SHINOBI supply to distribute to players during Gamified Rebase events.