Swap & Burn
SLD Buyback and Burn is the method Shield uses to capture value to the SLD token. SLD token holders can choose to trigger this contract any time they prefer, to swap their SLD tokens for stablecoins.
Once the SLD is swapped for a stablecoin in the pool, the corresponding SLD will be “burned” by the smart contract (hence the term, swap & burn). This creates a Deflationary trend, and increases the value of SLD tokens in the long run.
You may choose to swap your SLD for any of the stablecoins available in the fee pool. Currently we suppot USDT and will add more stablecoins in the near future.
The amount of stablecoins you receive is determined by the following formula.
Stablecoin Received = SLD Used For Buyback * Total Stablecoin Pool / 10% SLD Ssupply