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.

🔁 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.

🔁 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.

💵 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.

🧱 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

🪙 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

🧾 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

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