Epoch-Based Execution and On-Chain Operations

To maintain a balanced, systematic adjustment of CSM supply, the CosmBank protocol operates on an Epoch-based cycle.

Each Epoch serves as a checkpoint for evaluating market dynamics and triggering minting or buyback actions based on the latest CSM price trends.

• Each Epoch spans approximately 12 hours.

• At the end of each Epoch, the protocol calculates the TWAP of CSM.

Depending on the TWAP:

• If TWAP > IV, the protocol initiates Minting Operations according to the Inflation Adjustment Equation.

• If TWAP < IV, the protocol initiates Buyback Operations according to the Deflation Adjustment Equation.

If Treasury reserves of CSM or USDT are insufficient, the remaining user transactions are redirected through DEX liquidity pools (e.g., PancakeSwap), ensuring continuous liquidity and price stability.

Epoch-based recalibration ensures a disciplined, transparent mechanism for supply adjustments without disrupting the broader market.