To enhance ARK’s market stability and liquidity adjustment capacity, and to serve as a complementary mechanism to the RBS, this proposal introduces the Market Balance Reserve (MBR). The MBR will be funded by ETH burnback returns, forming a USDT reserve pool that can be activated when necessary to help maintain market balance, order, and overall ecosystem health.
Purpose
- Optimize the utilization of ETH burnback funds and strengthen protocol resilience.
- Work in synergy with RBS to form a “Auto-Stabilization × Reserve Support × Continuous Balance” framework.
- Enhance overall market stability and long-term confidence in ARK.
Implementation Details
- Funding Source: ETH burnback returns
- Initial Scale: Equivalent to USD 1,000,000
- Reserve Form: Stablecoin (USDT)
- Operational Principles:
- 1) The MBR differs from a one-way buyback; it serves as a two-way liquidity balancing mechanism, capable of executing both buy and sell operations when necessary.
- 2) When the reserve exceeds USD 2,000,000, the surplus will be used for ARK buyback and burn.
- 3) When the reserve falls below USD 1,000,000, it will be replenished by subsequent ETH burnback inflows.
- 4) No fixed frequency — operations are triggered only when necessary to stabilize market conditions.
- Relation to RBS: - RBS remains the core automated price stabilization module of ARK. - MBR functions as a controlled, transparent auxiliary reserve mechanism. - Both share the same goal: reducing volatility and promoting healthy, sustainable market conditions.
Implementation Schedule
- Execution will commence within 48 hours after proposal approval.
- The reserve address and all operation records will be publicly disclosed via official DAO announcements, ensuring full transparency and verifiability.
