Covered Amount

Enhancing User Experience with Volatility Management Mechanism (VMM) Support:

After many product tests, the VNST team found that when converting Mint and Redeem, price fluctuations will sometimes appear while users are converting. Therefore, with the desire for users to have the best experience when converting VNST, VNST Solutions will support users with a certain amount of volume through VMM if users encounter price fluctuations while converting.

By setting up a certain price support buffer, when users make transactions and encounter market fluctuations, VMM will automatically support a certain amount of volume for users, so that users can receive a volume back at an equivalent or better rate than the volume they are converting.

Notes:

  • The support volume is customized at different times.

  • When the Mint (or Redeem) support volume reaches the limit, the conversion feature will be automatically suspended until one of two cases occurs:

  1. The support volume becomes available again

  2. The VNST exchange rate is equal to the market rate

Example of a Mint transaction:

  • The user trades 100 USDT and receives between 2,400,000 and 2,500,000 VNST (depending on the market rate at that time).

  • Therefore, the minimum amount of VNST the user receives is 2,400,000 VNST.

  • During the transaction, fluctuations in the market rate affect the actual conversion price before the on-chain transaction confirmation, causing the user to receive less than 2,400,000 VNST.

  • At this time, if the support volume is still available, the VNST system will automatically support the transaction for the user so that 100 USDT can receive 2,400,000 VNST.

Example of Redeem transaction:

  • The user trades from 2,500,000 to 2,400,000 VNST to receive 100 USDT (depending on the market rate at that time).

  • Therefore, the maximum amount of VNST the user needs to convert to receive 100 USDT is 2,500,000 VNST.

  • During the transaction, market exchange rate fluctuations affect the actual conversion price before the on-chain transaction confirmation, causing the user to have to convert more than 2,500,000 VNST to receive 100 USDT

  • At this time, if the support volume is still available, the VNST system will automatically support so that the user can convert no more than 2,500,000 VNST and still receive 100 USDT.

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