4.5 Treasury Mechanism

An initial supply of 120 million FUSD is issued to the treasury. The atomic price-control protocol ensures FUSD’s price oscillates slowly around 0.05 USDT: when a user buys FUSD, the treasury sells FUSD to hedge at a predetermined ratio; when a user sells FUSD, the treasury buys FUSD. The treasury charges roughly a 10% fee on each FUSD trade, which is automatically injected into the Swap1 liquidity pool, while retaining a certain reserve for emergency use. When the treasury’s funds are abundant, the team can proactively add liquidity to enhance market depth.