AMM & Liquidity

The TRN platform maintains two internal automated market makers (AMMs) to support its circular token economy without relying on external exchanges. These AMMs facilitate deterministic, rules-based swaps of TRN with:

• BRN (Burn-Reserve-Note) — used for internal engagement mechanisms like burns and moderation

• USD (Fiat Price Reference) — used for consistent pricing of platform features such as subscriptions, views, boosts

All AMM behavior is governed by usage constraints, Merkle drop balances, and smart contract-enforced caps to ensure the system remains economically sound and manipulation-resistant.

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🔁 Internal AMMs Overview

AMM	Purpose	Access Level
TRN↔BRN AMM	Internal swaps to enable burning, retrns, and moderation mechanisms	Platform-only (via TRNUsageOracle)
TRN↔USD AMM	Converts user funds to target TRN rates for feature pricing (e.g., 1 view = 1 TRN)	Platform-only (used behind scenes)

All token flows through AMMs are enforced via the TRNUsageOracle, ensuring that swaps only occur with real-time reconciled balances and respecting global system limits.

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🔁 Private TRN↔BRN AMM

File Reference: TrnBrnSwapModule.sol

This AMM maintains a strict 1:1 peg between TRN and BRN. It enables key engagement actions such as:

• Post burns

• Downvotes

• Retrns of other people’s content

🔒 Rules:

• Users do not receive BRN in their wallet — all BRN is staked internally via BurnRegistry

• BRN is minted temporarily and burned after the next Merkle drop batch

• TRN input is burned during swap → equivalent BRN is staked on the user’s behalf

• Any swap that would break the 1:1 peg or exceed system limits is rejected

• A per-swap cap of 333,333 TRN is enforced until the stability pool is fully funded

• Transactions that would cause price movement >2% are held until the next block cycle

This AMM is never exposed to the public. It’s used by engagement-related contracts and always reconciled through the TRNUsageOracle.

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💵 Private TRN↔USD AMM

File Reference: TrnUsdPricingOracle.sol

This AMM sets the effective fiat price of TRN across the platform. It exists to anchor TRN pricing for:

• Subscriptions

• Views

• Boost campaign budgets

• AI targeting and ad spend calculations

💡 Peg Rules:

• Target price is fixed at 0.003 USD per TRN

• All user transactions are denominated in TRN, but guided by this peg for stability

• Any swap that moves price more than ±2% is rejected or deferred

• Pricing pulls a time-weighted average to prevent flash attacks or slippage abuse

• Swap size limits are enforced based on vault liquidity and stability pool reserves

Users never interact with this AMM directly — it informs all platform feature pricing invisibly and consistently.

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🧱 Swap Limits & Stability Trigger

Files Referenced:

• MintThrottleController.sol

• StabilityVault.sol

• TrnBrnSwapModule.sol

• TrnUsdPricingOracle.sol

🚨 Swap Caps:

• Max 333,333 TRN per swap for TRN↔BRN (pre-threshold)

• TRN↔USD swaps capped dynamically based on real-time Merkle liquidity state

• No batch can mint more TRN than needed for reconciled Merkle settlements

🛑 Price Movement Rejection:

• Any transaction that would shift TRN price >2% from current value is rejected

• Transactions exceeding this range are held until the AMM re-equilibrates

🔄 Flash Loan Safeguards:

• AMM uses private internal liquidity only

• Arbitrage attempts using flash loans are ineffective due to:

  • Locked access

  • Time-weighted averaging

  • Per-tick throttling

• AMM can simulate a counter-arbitrage and capture profit into the DAO Vault

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🪙 Stability Vault & DAO Earnings

File Reference: StabilityVault.sol

The Stability Vault activates after the system crosses a pre-defined funding threshold. Until then:

• All swaps must respect AMM limits

• Liquidity is throttled via the MintThrottleController

• Flash loan-based stabilization remains disabled

Once live:

• The AMM can pull temporary liquidity from the vault

• Excess earnings from arbitrage or overflow mints go directly to the DAO Vault

• Swap profits are not retained by users or bots — all surplus supports the ecosystem

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🧾 Flow Summary

1. User views a post → 1 TRN consumed

2. Platform references TRN↔USD AMM to confirm consistent pricing

3. Booster funds campaign in TRN → amount is deducted and locked

4. Burn event triggers swap → TRN burned, BRN staked

5. All transactions reconciled through TRNUsageOracle

6. DAO receives TRN from:

   • AMM overflow earnings

   • Post burns

   • Platform fees