Transmuter

The Transmuter exists to ensure the peg in the case of negative price deviation. Depositing your USDY into the Transmuter will gradually convert it into USDC. The transmuter has USDC stored in it which should be at least 10% of outstanding USDY. For example, if there are 100 M USDY in circulation, the transmuter should have 10M USDC. A user can stake their USDY in the transmuter and the staked USDY will be converted to USDC at price of 1USDY = 1USDC. The transmuter is funded by part of deposited stablecoins and the interest collected from loans. So when the price of USDY is below $1, one can buy USDY from our DEX, stake them into the transmuter to arbitrage. When interest from RWA or new investment from stablecoins are collected, they will be used to fill transmuter back to 10% threshold first and the rest of them will go into treasury which will be used for lending later.