Stability Anchoring Mechanism

The CosmBank Treasury Contract ensures that each CSM token is anchored at 1 USDT through an automated dynamic adjustment system.

When 1 CSM > 1 USDT The protocol mints and sells additional CSM, expanding supply to push the price back toward the anchor.

When 1 CSM < 1 USDT The protocol buys back and burns CSM, contracting supply to elevate the price.

This system achieves price stability by flexibly switching between inflationary (minting) and deflationary (buyback) modes.

CosmBank dynamically arbitrages price deviations — stabilizing CSM around its target while generating sustainable protocol revenue.