Moome <> DeX interaction

Each transaction that mints MOOME coins performs two internal swaps by calling the methods of public DeX smart contracts such as Turbos and Cetus. These swaps are essential components of the minting process, ensuring that the value of collateral and the price of MOOME are accurately determined in real time based on market conditions.

These steps are integral to the Moome smart contract design and are mandatory for every minting transaction. There is no other way to mint MOOME coins, ensuring that the process is decentralized, transparent, and driven by real-time market conditions.

Step 1: COLLATERAL_COIN to SUI Swap

• Purpose: The first swap converts 20% of the user-supplied COLLATERAL_COIN (any token used as collateral) into SUI.

• Mechanics:

  • The smart contract performs a swap from COLLATERAL_COIN to SUI through a public DeX pools (Turbos or Cetus, up to dApp to decide based on the best performing one), determining the market price of the collateral token.

  • The total SUI obtained is divided into two equal portions:

    1. 50% for the STAKING_POOL:

       • This portion is added to the staking pool, increasing Moome liquidity and the collateral backing Moome tokens.

    2. 50% for the next step (SUI to MOOME swap):

       • This portion will be used to calculate the amount of Moome tokens to mint.

• Output:

  • Increases SUI staked in STAKING_POOL per MOOME

  • Determines the market price of COLLATERAL_COIN at the time of minting.

Step 2: SUI to MOOME Swap

• Purpose: Use half of the SUI from Step 1 to determine the market price of MOOME and mint new tokens accordingly.

• Mechanics:

  • The smart contract performs a swap from SUI to MOOME through a public DeX pool (Turbos), ensuring that the minting aligns with real-time market conditions.

  • The price of MOOME in terms of SUI is calculated from this swap.

  • The amount of minted Moome tokens corresponds to the value of the COLLATERAL_COIN supplied on the first Step, proportional to the market price of Moome.

• Output:

  • The user receives MOOME tokens equivalent in value to the collateral, based on real-time pricing from the DeX pool.

  • The total SUI from Step 1 is now split between the staking pool and market liquidity, enhancing both.