🔝Price

What is the price?

The price of SETH is simply the ETH value of the backing treasury divided by circulating supply. An easy way to understand how the price can go up both on sells and buys (redemptions and mints) we can simply think of the treasury always having a net positive gain on each transaction. For a sell, more tokens are burnt than paid out for a net gain on treasury vs supply. For a buy, more ETH is allocated to the treasury than tokens minted to circulation for a net gain as well. The net gain comes from the fees adding more to the backing treasury compared to the amount minted/paid out.

Both Minting (i.e.Buying) and Redeeming (i.e. Selling) through the Mint and Redeem contracts will cause price appreciation.