Protocol Profit Mechanism

CosmBank’s model ensures that the protocol remains economically sustainable while reinforcing CSM price stability.

When CSM > 1 USDT:
The protocol sells newly minted CSM slightly below the prevailing market price, capturing positive arbitrage margins.

When CSM < 1 USDT:
The protocol buys back CSM slightly above the prevailing market price, reducing supply and strengthening price support.

By strategically selling into market strength and buying into market weakness, CosmBank captures value, reinforces price anchors, and enhances long-term ecosystem growth.