Extreme Market Protection

CosmBank includes a built-in Black Swan Response Module to defend the protocol and CSM token price in the event of extreme market volatility.

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Emergency Trigger

• If the price of CSM deviates more than 20% from its intended peg (e.g., stable trading range), the system automatically activates contingency reserves.

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Protocol Response Actions

• Deployment of Reserve Liquidity: The protocol taps into a pre-authorized DAO reserve pool of stablecoins (e.g., USDT, BUSD).

• Multi-DEX Price Intervention: Market buy orders are executed across multiple DEXs — absorbing sell pressure and helping restore price stability.

• DAO-Governed Parameters: The specific activation threshold, liquidity deployment cap, and target rebalancing window are all configurable by DAO vote.

CosmBank's emergency liquidity system ensures that the protocol can actively intervene in moments of market stress — preserving confidence, price anchoring, and economic integrity.