Sill Minting and Burning

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This post is not financial advice

There has been some price fluctuations with HSBIDAO lately. When that happens it usually has some effect on PIXYDUST due to the LP. This in combination of the bonus burns has caused me to do a lot more LP balancing where I sell PIXYDUST back to the LP.

When the reverse happens and the value of PIXYDUST goes down ,I do the opposite and swap in HSBIDAO tokens. But lately the past several months the balancing has been selling more PIXYDUST.

In fact I just minted 50 more tokens to have on hand to be able to do this since I spent the last of the tokens I had balancing the LP last night. I do my best to keep the prices within 5%, absolutely no more than 10%. Most of the time I keep it within less than 2%. When people are buying through the LP it takes a bit to balance it out as I am doing this manually.

I don't think there is a reason for me to use a bot or anything. In fact keeping an eye on the LP lets me know what's happening (ie are people selling more PIXYDUST or buying). I do have a small amount of PIXYDUST on sale on the market too.

Of the 50 PIXYDUST I recently minted I already sold back 20. I may use some of those tokens to add to the sell orders on the market but I will likely keep them in the wallet for now so I have them when needed.

This could change at any time and if I ever need to I will balance the pool the other way. I was able to mint those 50 tokens because there are about 3x+ assets held to PIXYDUST tokens in circulation and that allows me to mint some more tokens as needed without needing to wait for more assets. It's one reason why keep that ratio so high so I can mint when needed without needing to do the math each time ensuring all tokens are backed before mint(because I know they are already backed).

I will use some of the newly minted tokens to add to the LP once I've balanced it enough.

None of this effects the future bonus burns. I will still do those pretty regularly. I may do another at the end of the month or early December. These bonus burns seem to be done at a good pace for now. I will likely burn another 5k tokens then but I have not decided on an exact amount yet.