Price Stability Algorithm

When TAI > $1.05, the PCV will directly mint TAI with the ETH in the PCV at the price of $1.05;

When $0.95 < TAI < $1.05, traders can trade in markets like TaichiSwap and SushiSwap. The mechanism will not intervene;

When TAI < $0.95, Selling TAI on TaichiSwap will be punished by punishment curve.

Penalty Curve

If TAI < $0.95, the selling behavior will be penalized with penalty ratio = (1 - selling price) *100%. For example, if someone sells TAI at $0.8, 20% of the selling token will be penalized.

Reward Curve

We don't reward buying behavior.