7% of every play is set aside here. The keeper uses it to buy and burn, at most 250 USDG at a time and 3,000 USDG a day.
How it burns
The keeper runs the Bonfire about once an hour. It quotes two routes, takes the better one and sends what it buys to the burn address.
- Per call
- Up to 250 USDG
- Gap
- At least 50 minutes per ledger
- Daily cap
- 3,000 USDG per ledger per UTC day
- Burn address
- 0x000000000000000000000000000000000000dEaD0x0000…dEaD
Anything over the cap waits for the next run. Nothing is lost.
Price guard
Each buy must get at least 95% of a reference rate, the anchor. The anchor rises only on a better fill and decays 1% an hour, to no less than 70% of itself, so the floor never drops below 66.5%. If the price rises too far, buys pause and USDG waits. The Safe can reset the anchor.
Fees
Pool fees of about 1% per hop apply on the way. Burns reduce supply. They don’t guarantee any price.