Sales Contract

According to the treasury contract, each ORI minted is anchored to 1 USDT. When 1 ORI > 1 USDT, the protocol mints and sells additional ORI. When 1 ORI < 1 USDT, the protocol buys back ORI. This anchoring is achieved through inflationary or deflationary modes. Regardless of whether the ORI price is above or below 1 USDT, the ORIZON protocol can profit.

The ORI minting and buyback formulas are as follows:

- Minting: epochMint = (TWAP – IV) * supply*ICV*Discount`

- Buyback: epochBurn = (TWAP – IV) *supply*DCV*Discount`

TWAP: Time-Weighted Average Price; IV: ORI Backing Price; SUPPLY: Increment of treasury risk-free funds; ICV: Inflation Coefficient; DCV: Deflation Coefficient; Discount: Discount (The increase in treasury risk-free funds relies on bond sales, which have discounts detailed in the Bond Contract section)

When 1 ORI > 1 USDT or 1 ORI < 1 USDT, the ORIZON sales contract becomes effective, and the protocol will mint or buy back ORI. Users can purchase or sell ORI directly from the protocol.

The ORIZON protocol checks if the latest epoch has ended (each epoch lasts approximately 6 hours). If it has ended, the protocol sends a transaction request (minting or buyback) to the ORIZON treasury based on the TWAP price of ORI.

If the protocol doesn't have enough ORI or USDT to fulfil the user's transaction, the remaining transaction will be completed through the ORI DEX pool.